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KwaZulu-Natal Business 2021-22

The 2021/22 edition of KwaZulu-Natal Business is the 13th issue of this unique guide to business and investment in KwaZulu-Natal Province in South Africa. Launched in 2008, this annual journal has established itself as the premier business and investment guide for the province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special report on the prospect of increasing exports on the back of the signing of a continental free trade agreement. The province’s export infrastructure is examined and the diversity and export successes of several companies in a wide range of sectors are noted. The increasing importance of the Oceans Economy to the future of the provincial and national economy is relevant to any examination of the economy of KwaZulu-Natal. This applies as much to trade and ship-repair as it does to the exciting gas discoveries which have been made off the coast of Mozambique and South Africa. 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.globalafricanetwork.com

The 2021/22 edition of KwaZulu-Natal Business is the 13th issue of this unique guide to business and investment in KwaZulu-Natal Province in South Africa. Launched in 2008, this annual journal has established itself as the premier business and investment guide for the province.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special report on the prospect of increasing exports on the back of the signing of a continental free trade agreement. The province’s export infrastructure is examined and the diversity and export successes of several companies in a wide range of sectors are noted.
The increasing importance of the Oceans Economy to the future of the provincial and national economy is relevant to any examination of the economy of KwaZulu-Natal. This applies as much to trade and ship-repair as it does to the exciting gas discoveries which have been made off the coast of Mozambique and South Africa.
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.globalafricanetwork.com

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ole in the automotive sector while the Engen Oil<br />

Refinery is a strategic asset.<br />

The province’s existing infrastructure, good soils<br />

and fine weather provide a solid base for future<br />

growth. <strong>KwaZulu</strong>-<strong>Natal</strong> already has significant<br />

capacity in heavy and light manufacturing, agriprocessing<br />

and mineral beneficiation, all of which<br />

is supported by South Africa’s two busiest ports<br />

(Richards Bay and Durban), the country’s busiest<br />

highway (the N3), a modern international airport<br />

and pipelines that carry liquids of all types to and<br />

from the economic powerhouse of the country<br />

around Johannesburg in the interior.<br />

Sappi’s dissolving pulp mill at Umkomaas<br />

south of Durban (below) is one of the province’s<br />

most significant industrial sites as it produces huge<br />

quantities of a material that is used in viscose staple<br />

fibre, which in turn is used in clothing and textiles.<br />

Together with production volumes from Sappi’s<br />

mill in neighbouring Mpumalanga province, the<br />

company is the world’s largest manufacturer of<br />

dissolving pulp. Sugar, tourism and forestry an<br />

paper are other important sectors driving growt<br />

and employment in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

In his 2020 State of the Province addres<br />

Premier Sihle Zikalala listed the sectors which are<br />

be targeted for investment in the future. These are<br />

• Aloe processing<br />

• Bio-ethanol<br />

• Renewable energy<br />

• Fish processing<br />

• Innovation hubs<br />

• Oceans Economy.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a long coastline that stretche<br />

from Port Edward in the south to the iSimangalis<br />

Wetland Park in the north. The province’s conta<br />

with the sea has brought obvious benefits: fishin<br />

fine beaches enjoyed by millions of tourists an<br />

two great ports.<br />

These ports export vast quantities of minera<br />

(mostly through Richards Bay) and manufacture<br />

goods (Durban) and serve as an important condu<br />

KWAZULU-NATAL<br />

BUSINESS<br />

<strong>2021</strong>/<strong>22</strong> EDITION<br />

THE GUIDE TO BUSINESS AND INVESTMENT IN<br />

THE KWAZULU-NATALPROVINCE<br />

SPECIAL FEATUR<br />

Automotive<br />

Toyota is to spend R2.4-billion on a new vehicle line.<br />

OVERVIEW<br />

JOIN US ONLINE<br />

In a year in which South Africa’s total<br />

vehicle exports topped 350 000, it was<br />

perhaps not surprising that Durban’s Car<br />

Terminal boasted a record of putting<br />

more than 500 000 fully-built-up units (FBUs)<br />

through the port in 2018/19. The figure includes<br />

FBUs that are not motor vehicles and<br />

includes vehicle imports.<br />

Toyota’s popular Fortuner is exported at a<br />

rate of about 150 per month. The company’s<br />

plant, just a few kilometres south of the<br />

harbour at Prospecton, is to receive a R2.4<br />

billion investment injection in order to produce<br />

a new passenger vehicle from the end of 2020. The Toyota Hybrid<br />

Synergy Drive vehicle will be produced as a variant. Toyota sells about<br />

a quarter of the vehicles sold in South Africa, and accounts for the same<br />

proportion of export volumes. The company’s total investment of R4.2-<br />

billion between 2019 and <strong>2021</strong> includes other manufacturing projects<br />

and a huge increase in warehousing capabilities.<br />

The other large-scale original equipment manufacturer in the<br />

province is Bell Equipment. Between the Toyota plant and the Richards<br />

Bay facility of heavy-equipment manufacturer Bell Equipment,<br />

upwards of 11 000 people are employed. In 2019 Bell won the<br />

“Major Contributor to Innovation and Technological Advancement<br />

in KZN” award and the “Exporter of the Year” award. Exports to more<br />

than 80 countries make up about 40% of the company’s turnover<br />

and local content of those exports is at 70%. Bell is best known for<br />

its heavy equipment which is primarily used in the mining and<br />

construction sectors.<br />

Another manufacturer of earthmoving equipment is Dezzi, with<br />

18 offices and branches. In 2018 AIH Logistics started assembling<br />

Mahindra and Bolero bakkies from kits imported from India on a 5<br />

000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant<br />

at Hammars-dale has increased capacity to 150 000 used truck tyres<br />

per year and should exceed 200 000 soon, while Powerstar assembles<br />

Online Resources<br />

Image: Bell Equipment<br />

Sector Insight<br />

Bell Equipment is<br />

scooping awards.<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.KWAZULUNATALBUSINESS.CO.ZA<br />

E S T 1 8 5 6<br />

trucks in Pietermaritzburg on a<br />

site formerly used by Super<br />

Group. <strong>KwaZulu</strong>-<strong>Natal</strong>’s substantial<br />

automotive components<br />

sector includes large manufacturers<br />

such as GUD Filters, while<br />

39 companies (with 17 000<br />

employees) are members of the<br />

Durban Automotive Cluster.<br />

Trade and Investment<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> estimates that<br />

the province’s component<br />

automotive manufacturers<br />

enjoy a combined turnover<br />

approaching R10-billion.<br />

The Behr Group has an<br />

air-conditioning and cooling<br />

systems factory in Durban.<br />

DURBAN CHAMBER<br />

OF COMMERCE AND<br />

INDUSTRY NPC<br />

WHO WE ARE<br />

13 KWAZULU-NATAL BUSINESS 2020/<br />

Policy and advocacy are at the heart of our work and we assist m<br />

HR consultancy and more) across a broad spectrum of sectors, e<br />

thought leadership through forum webinars and other networki<br />

The Durban Chamber advocates and influences policy decisions


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INVEST LOCAL<br />

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Let’s come together and heal as a nation.<br />

Let’s focus on Renewing, Restoring and Rebuilding<br />

successful partnerships and investment opportunities so we<br />

can get back to promoting our city as the ideal destination<br />

for business and pleasure to the rest of the world.<br />

Your support coupled with our world-class infrastructure,<br />

innovative business environment and ever evolving<br />

investment opportunities, means we can get back to<br />

‘connecting continents’ in no time.<br />

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Tel: +27 31 311 4<strong>22</strong>7<br />

Email: invest@durban.gov.za<br />

web: invest.durban<br />

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The city of<br />

Durban (eThekwini<br />

Municipality) is South<br />

Africa’s second most<br />

important economic<br />

region<br />

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Extensive first-world<br />

road, rail, sea and air<br />

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Dube<br />

TradePort<br />

and King<br />

Shaka<br />

International 1<br />

Airport - 60-<br />

year Master<br />

Plan - driving<br />

growth of<br />

aerotropolis,<br />

or airport<br />

city<br />

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Rated in top 5<br />

‘Quality of Living’<br />

cities in Africa and<br />

Middle East by<br />

Mercer Consulting in<br />

2015<br />

Named one of the<br />

New 7 Wonders Cities<br />

by the Swiss-based<br />

New 7 Wonders<br />

Foundation in 2014<br />

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E S T 1 8 5 6<br />

DURBAN CHAMBER<br />

OF COMMERCE AND<br />

INDUSTRY NPC<br />

WE CAN HELP<br />

YOUR BUSINESS<br />

A: 101 Isaiah Ntshangase Road, Durban 4001 | E: info@durbanchamber.co.za<br />

W: www.durbanchamber.co.za | T: +27 31 335 1000 | F: +27 31 303 1149


WHO WE ARE<br />

Policy and advocacy are at the heart of our work and we assist members<br />

HR consultancy and more) across a broad spectrum of sectors, engaging<br />

thought leadership through forum webinars and other networking events,<br />

The Durban Chamber advocates and influences policy decisions that affect the<br />

our strategic purpose is to help create a conducive economic and business<br />

environment to facilitate and promote economic growth in the region in<br />

partnership with key stakeholders.<br />

SOME OF OUR SERVICES<br />

OFFERING BUSINESS SUPPORT SERVICES AND ADVICE<br />

•<strong>Business</strong> and Personal<br />

Credit Reports<br />

•Import and Export assistance<br />

•Workshops and Seminars<br />

PROVIDING BUSINESS INFORMATION RELEVANT TO BUSINESS<br />

•Policy Focus Updates<br />

•Industry-Specific Economic Data<br />

ADVOCATING AND INFLUENCING POLICY DECISIONS THAT AFFECT<br />

THE INTERESTS OF BUSINESS<br />

•Economic Research<br />

In<strong>Business</strong>ForABetterWorld


CONTENTS<br />

CONTENTS<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>2021</strong>/<strong>22</strong> Edition<br />

Introduction<br />

Foreword 8<br />

A unique guide to business and investment in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Special features<br />

Regional overview of <strong>KwaZulu</strong>-<strong>Natal</strong> 10<br />

Infrastructure projects will help the province build back better.<br />

Ports and exports: <strong>KwaZulu</strong>-<strong>Natal</strong> has<br />

an abundance of both 18<br />

Companies in a wide range of sectors are seeing potential<br />

in Africa and China.<br />

Economic sectors<br />

Agriculture 26<br />

A Value Chain Master Plan promises solutions for<br />

the sugar industry.<br />

Forestry and paper 30<br />

A beekeeping project has reduced forest fires.<br />

Mining 31<br />

Coal mining and processing has resumed.<br />

Engineering 32<br />

A respected university unit is expanding its brief.<br />

Oil and gas 33<br />

A new tanker will improve port services.<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

4


Inspiring hope and enabling dreams<br />

Growing with <strong>KwaZulu</strong>-<strong>Natal</strong> since 1863.<br />

s<br />

tandard Bank has a long and storied history<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> where we have had a presence<br />

for more than 150 years. In 1863 the bank<br />

opened its third South African branch in Durban.<br />

Over the decades Standard Bank has continued<br />

to evolve and adapt with South Africa’s sociopolitical<br />

and structural changes. Under the<br />

new dispensation Standard Bank has enjoyed<br />

strong and cordial working relationships with<br />

government and municipalities in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Africa is our home, we drive her growth, and we do<br />

this by being a catalyst for inclusive and sustainable<br />

economic growth in the countries in which we<br />

operate, and by making life better for our fellow<br />

Africans by doing business the right way.<br />

We want to fulfil dreams, help people take steps in life<br />

and organise and execute our strategies at the right<br />

time, on the right channels while fulfilling humanity.<br />

This means evolving to being a platform business.<br />

And our platform’s purpose is to match the<br />

individual needs of users and facilitate the<br />

exchange of goods and services, enabling value<br />

creation for all participants. Client centricity places<br />

our clients at the centre of everything we do.<br />

Driving growth<br />

Our people and processes are outwardly focused on<br />

our clients as their needs and expectations change.<br />

Standard Bank’s business activities have social,<br />

economic and environmental (SEE) impact in<br />

the economies and communities in which we<br />

operate. There are seven specific areas in which<br />

we believe we can best drive Africa’s growth,<br />

while making a positive impact on society, the<br />

economy, and the environment:<br />

• Financial inclusion.<br />

• Job creation and enterprise development.<br />

• Infrastructure.<br />

• Africa trade and investment.<br />

• Climate change and sustainable finance.<br />

• Education and skills development.<br />

• Health.<br />

We are in the business of inspiring hope and<br />

enabling dreams. We believe that dreams<br />

matter because they fuel our growth.<br />

Soon we will be the most truly digital, the<br />

most truly human, the most competitive, the<br />

most profitable, and the most purpose-driven<br />

services group in the history of Africa. ■<br />

Image by Captureson Photography on Unsplash


CONTENTS<br />

Construction and property 36<br />

The north coast continues to attract high prices.<br />

Tourism 37<br />

Dedicated funds are promoting transformation.<br />

Manufacturing 38<br />

Cellphones are now made in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Automotive 39<br />

Stanger will host a new battery factory.<br />

Education and training 40<br />

An ambitious scheme aims to prepare young people<br />

for the world of work.<br />

Water 44<br />

Waste-water works are being upgraded.<br />

Energy 45<br />

Toyota dealers are using less energy.<br />

Banking and financial services 46<br />

Choices for South African financial consumers are expanding.<br />

Development finance and SMME support 48<br />

Exxaro and Bell are teaming up to help SMMEs.<br />

References<br />

Key sector contents 24<br />

Overviews of the main economic sectors of <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Index<br />

IBC<br />

ABOUT THE COVER:<br />

Rich agricultural soil supports the<br />

intensive cultivation of sugarcane<br />

in the iLembe District Municipality.<br />

Located north of Durban with excellent<br />

connections to the port of that city and<br />

Richards Bay, iLembe is also host to the<br />

King Shaka International Airport and the<br />

Dube TradePort. Several companies have<br />

their national headquarters in Ballito.<br />

Credit: Enterprise iLembe.<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

6


EBH South Africa<br />

Trusted ship repair, marine and industrial<br />

engineering for over 140 years.<br />

Elgin Brown and Hamer, having been founded in 1878, is<br />

still regarded as one of the oldest shipyards in Southern<br />

Africa. Since the takeover by new management in 2018<br />

the goal was to sustain the reputation of the company in<br />

servicing the marine and industrial sectors, with high-quality<br />

facilities and on-time delivery.<br />

Services<br />

The Elgin Brown and Hamer Group comprises eight companies under<br />

the group holding. We have several strategic subsidiaries who carry<br />

out specific divisional work rendering a full in-house service in all<br />

aspects of ship repair and industrial engineering as follows:<br />

• Steel Repairs and Steel Fabrication<br />

• Mechanical Repairs (Diesel and Turbo)<br />

• Blasting and Coating (PMC)<br />

• Pipe Fabrications and Repairs<br />

• Machining and Hydraulics (M&H)<br />

• Electrical Repairs and Renewals (Electro Marine)<br />

• Carpentry and Insulation<br />

• Scaffolding<br />

We are committed to superior engineering solutions by providing<br />

diverse and innovative services to all our clients.<br />

DURBAN HEAD OFFICE<br />

Lower Bremen Road, Bayhead, Durban<br />

PO Box 29079, Maydon Wharf, 4057<br />

Tel: +27 31 205 6391<br />

Email: shiprep@ebh.co.za<br />

Website: www.ebh.co.za<br />

What sets us apart?<br />

EBH South Africa has a privatelyowned<br />

floating dock in the Port<br />

of Durban with a lifting capacity<br />

of 8 500 tons, a floating crane<br />

with a lifting capacity of 60<br />

tons at 10 metres, barges, and<br />

a launch. Our workshops are<br />

fully equipped and have the<br />

capacity to undertake various<br />

engineering works, both marine<br />

and industrial, at any given time.<br />

The company’s commitment to<br />

safety and quality is evident in<br />

its certification with the Bureau<br />

Veritas ISO 9001:2015 quality<br />

management system, which<br />

is complemented by ISO 3834<br />

accreditation. The company is<br />

also a Level 2 B-BBEE contributor.<br />

Achievements<br />

In 2020, EBH SA was pleased<br />

to announce our association<br />

with CR Ocean as a Southern<br />

African Region Agent for the<br />

Marine Exhaust Gas Scrubbers.<br />

Our subsidiary company<br />

Marine & Hydraulics was also<br />

named as the distributor for<br />

sales of original Syncrolift®<br />

products in South Africa. EBH<br />

(Pty) Ltd recently installed<br />

Ballast Water Treatment<br />

System (BWTS) on various drydocking<br />

vessels in the yard<br />

which was a success and to<br />

the customers’ satisfaction.<br />

We are available to assist in<br />

the ports of Durban, Richards Bay,<br />

Cape Town, Saldanha Bay, Port<br />

Elizabeth and East London. ■<br />

7 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


FOREWORD<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong><br />

A unique guide to business and investment in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Simon Lewis<br />

Production: Aneeqah Solomon<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Jeremy Petersen<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Shiko Diala<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Printing: FA Print<br />

The <strong>2021</strong>/<strong>22</strong> edition of <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is the 13th issue of<br />

this highly successful publication that, since its launch in 2008, has<br />

established itself as the premier business and investment guide<br />

for the <strong>KwaZulu</strong>-<strong>Natal</strong> Province.<br />

In addition to the regular articles providing insight into each of the<br />

key economic sectors of the province, there is a special report on<br />

the prospect of increasing exports on the back of the signing of a<br />

continental free trade agreement. The province’s export infrastructure is<br />

examined and the diversity and export successes of several companies<br />

in a wide range of sectors is noted.<br />

The increasing importance of the Oceans Economy to the future<br />

of the provincial and national economy is relevant to any examination<br />

of the economy of <strong>KwaZulu</strong>-<strong>Natal</strong>. This applies as much to trade and<br />

ship-repair as it does to the exciting gas discoveries which have been<br />

made off the coast of Mozambique and South Africa.<br />

To complement the extensive local, national and international<br />

distribution of the print edition, the full content can also be viewed<br />

online at www.kwazulunatalbusiness.co.za. Updated information on<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is also available through our monthly e-newsletter,<br />

which you can subscribe to online at www.gan.co.za, in addition to our<br />

complementary business-to-business titles that cover all nine provinces,<br />

our flagship South African <strong>Business</strong> title and the addition to our list of<br />

publications, African <strong>Business</strong>, which was launched in 2020. ■<br />

Chris Whales<br />

Publisher, Global Africa Network Media | Email: chris@gan.co.za<br />

DISTRIBUTION<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is distributed internationally on<br />

outgoing and incoming trade missions, through trade and<br />

investment agencies; to foreign offices in South Africa’s<br />

main trading partners around the world; at top national<br />

and international events; through the offices of foreign<br />

representatives in South Africa; as well as nationally and<br />

regionally via chambers of commerce, tourism offices, airport<br />

lounges, provincial government departments, municipalities<br />

and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

COPYRIGHT | <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to the<br />

publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Academy of Digital Arts, African Marine Solutions, Bell<br />

Equipment, Collins Residential, Enterprise iLembe, Kevin Folk on Unsplash,<br />

Hodari Properties, Hulamin Rolled Products, Isandlwana Battlefields Route,<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

8<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN 1995-1310<br />

Mark Harpur on Unsplash, Mondi, OL architects, SA Canegrowers, Sappi, Anton<br />

Swanepoel, South32, Toyota SA, Transnet National Ports Authority, Transnet Port<br />

Terminals, Umgeni Water, University of KZN, Viking Sun/Philip Wilson.<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information<br />

contained in <strong>KwaZulu</strong>-<strong>Natal</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.


SMME VIRTUAL<br />

ROADSHOW<br />

PRACTICAL AND USEFUL<br />

INFORMATION ON SMALL,<br />

MEDIUM AND MICRO-BUSINESS<br />

IN SOUTH AFRICA.<br />

TO REGISTER:<br />

Visit www.gan.co.za<br />

and then SMME Virtual<br />

Roadshow<br />

Since 2014, the SMME Roadshow has supported small<br />

business in South Africa. Following the unprecedented<br />

challenges of 2020, Global Africa Network is relaunching<br />

the SMME Roadshow in a fully virtual, nationwide format.<br />

The SMME Virtual Roadshow, brought to you by Global<br />

Africa Network Media with Nemesis Accounting, SME<br />

Warrior and Aurum Wealth Creators, takes the form of<br />

presentations and practical guidance from thought<br />

leaders and experts in their fields.<br />

Presentations are pre-recorded for quality and convenience<br />

and presenters and their teams will be on hand to engage<br />

and interact with delegates. Delegates will also be able to<br />

network with other delegates.<br />

Who should attend?<br />

SMMEs requiring support and guidance on the following<br />

topics should attend:<br />

ABOUT GLOBAL AFRICA NETWORK<br />

Global Africa Network Media (GAN) is an established<br />

authority on business development in South<br />

Africa’s nine provinces. GAN’s online products<br />

include its well-established B2B portal, www.<br />

globalafricanetwork.com, and its monthly business<br />

and investment e-newsletters, with a reach of over<br />

53 000 subscribers.<br />

Each of the nine titles and the national journal,<br />

South African <strong>Business</strong>, has been utilised by all<br />

levels of government, parastatals, corporates,<br />

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specialist in small and developing business, and the<br />

company is a trusted partner of business chambers<br />

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the Roadshow, and will showcase incentives, services and<br />

opportunities available to SMMEs.<br />

For information on sponsorship opportunities, email<br />

info@gan.co.za


A REGIONAL OVERVIEW OF<br />

KWAZULU-NATAL<br />

Infrastructure projects will help the province build back better.<br />

“<br />

By John Young<br />

<strong>Business</strong> events to be hosted in 2020/21 are<br />

expected to inject an estimated R1.2-billion<br />

into the local economy.” When the Premier<br />

of <strong>KwaZulu</strong>-<strong>Natal</strong>, Sihle Zikalala, spoke these<br />

words on 4 March 2020 at the Royal Show Grounds<br />

in Pietermaritzburg, business tourism and tourism in<br />

general were projected to be significant earners for<br />

the province.<br />

A day later, on Thursday 5 March, the National<br />

Institute for Communicable Diseases confirmed<br />

that a suspected case of Covid-19, a person recently<br />

returned from a trip to Italy, had tested positive. And<br />

that was the end of tourism for the foreseeable – or<br />

unforeseeable – future.<br />

The first half of 2019 brought in a total of R14.4-billion<br />

in tourist spending and the year as a whole delivered an<br />

increase of 8% in international visitor numbers. The newlycreated<br />

Cruise Ship Terminal at the Port of Durban was<br />

ready to welcome guests, but it would be at least a year<br />

before cruises could resume.<br />

Tourism is a key sector in the <strong>KwaZulu</strong>-<strong>Natal</strong><br />

economy and provides livelihoods to many<br />

thousands of families in urban and rural areas. The<br />

closing of borders brought real hardship to many<br />

areas in the province.<br />

Infrastructure<br />

The other good news in the Premier’s State of the<br />

Province address was not subject to the spread<br />

of deadly viruses. This related to infrastructure<br />

spending plans which give hope for the province’s<br />

ability to “build back better”.<br />

Some of the infrastructure plans include:<br />

• A housing project in Msunduzi comprising 25 000<br />

units. The R2.5-billion Vulindlela project provided<br />

employment for 1 713 people and is in the final<br />

phase of construction.<br />

• New bridges to enable scholars to get to school<br />

safely. There are many rivers in the province so<br />

the 2020/21 budget makes provision for seven<br />

vehicular bridges and 12 Bailey bridges to be<br />

built in rural areas in partnership with the South<br />

African National Defence Force (SANDF).<br />

• •Upgrade of the N3/N2. The South African<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

10


SPECIAL FEATURE<br />

A wetland conservation project run by Mondi,<br />

the packaging and paper company.<br />

National Roads Agency will spend R35-bllllon<br />

on this multi-phase project.<br />

• The launch of the Durban Aerotropolis Master<br />

Plan. The plan is to develop an airport city<br />

centred on King Shaka International Airport.<br />

• The Department of Economic Development,<br />

Tourism and Environmental Affairs (DEDTEA) has<br />

allocated R30-million towards the construction<br />

of a terminal building at Mkhuze airport following<br />

its runway upgrade. The department is also<br />

working with Ray Nkonyeni Local Municipality to<br />

upgrade the terminal building at Margate airport.<br />

• Creation of an automotive supplier park.<br />

DEDTEA, Dube TradePort and eThekwini<br />

Municipality have signed a memorandum of<br />

understanding.<br />

• The provincial government intends contracting<br />

Broadband lnfraco to provide network<br />

services to be used by Dube TradePort to roll<br />

out more than 810 WiFi hotspots at 405 sites<br />

across the province.<br />

• The Isandlwana Heritage Project. It may seem<br />

ironic to be building tourism infrastructure at<br />

this time, but the future will include tourism.<br />

The Department of Transport and SANRAL are<br />

consulting local communities about further<br />

developing this historic site.<br />

Investment<br />

Between May 2019 and February 2020, inward<br />

investment commitments to the value of more than<br />

R15-billion were made. These included amounts<br />

pledged in most of the priority sectors identified by<br />

the provincial government, namely agro-processing,<br />

healthcare, manufacturing, renewable energy and<br />

tourism and property development.<br />

Other priority sectors include aloe processing,<br />

bio-ethanol fuel, fish processing and, more broadly,<br />

the Oceans Economy.<br />

The Special Economic Zones (SEZs) at Richards<br />

Bay and King Shaka International Airport (the<br />

Dube TradePort) are key components of the<br />

strategy of attracting investors to the province.<br />

Dube TradePort attracted R7-billion between<br />

2012 and 2019 and the same amount is expected<br />

to accompany the development of Phase 1A<br />

and Phase 1F of the Richards Bay Industrial<br />

Development Zone (RBIDZ). Two investors in 2019<br />

were edible oils manufacturer Wilmar Processing<br />

SA, which is investing more than R1-billion in<br />

a plant, and Elegant Afro Line, which will spend<br />

about R900-million on its chemicals plant.<br />

There are plans to establish a clothing and<br />

textiles SEZ in the province to build on the<br />

province’s established strength in the sector and an<br />

automotive supplier park will soon be in operation.<br />

Toyota and Bell Equipment play a big role in the<br />

automotive sector while the Engen Oil Refinery is a<br />

strategic asset.<br />

The province’s existing infrastructure, good soils<br />

and fine weather provide a solid base for future<br />

growth. <strong>KwaZulu</strong>-<strong>Natal</strong> already has significant<br />

capacity in heavy and light manufacturing, agriprocessing<br />

and mineral beneficiation, all of which<br />

is supported by South Africa’s two busiest ports<br />

(Richards Bay and Durban), the country’s most active<br />

highway (the N3), a modern international airport and<br />

pipelines that carry liquids of all types to and from<br />

the economic powerhouse of the country around<br />

Johannesburg in the interior.<br />

Sappi’s dissolving pulp mill at Umkomaas<br />

south of Durban is one of the province’s most<br />

significant industrial sites as it produces huge<br />

quantities of a material that is used in viscose<br />

staple fibre, which in turn is used in clothing<br />

11 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


Durban Container Terminal. Credit: TPT<br />

and textiles. Together with production volumes<br />

from Sappi’s mill in neighbouring Mpumalanga<br />

province, the company is the world’s largest<br />

manufacturer of dissolving pulp. Mondi is the<br />

province’s other global giant in forestry, paper<br />

and packaging.<br />

Oceans Economy<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> province has a long coastline that<br />

stretches from the Mtamvuna River in the south<br />

to the Isimangaliso Wetland Park in the north.<br />

The province’s contact with the sea has brought<br />

obvious benefits: fishing, fine beaches enjoyed<br />

by millions of tourists and two great ports. These<br />

ports export vast quantities of minerals (mostly<br />

through Richards Bay) and manufactured goods<br />

(Durban) and serve as an important conduit for<br />

imports of all sorts.<br />

The Richards Bay Coal Terminal exports massive<br />

quantities of coal while the Port of Durban is the<br />

busiest port in Africa.<br />

However, planners want to expand the economic<br />

benefits that the ocean can bring. An Oceans<br />

Economy Review Workshop has come up with a<br />

range of sub-sectors that can help grow the provincial<br />

economy and invite foreign direct investment:<br />

• Marine transport and manufacturing.<br />

• Offshore oil and gas exploration.<br />

• Aquaculture.<br />

• Marine protection and ocean governance.<br />

• Small harbours.<br />

• Coastal and marine tourism.<br />

Strategies to grow the Oceans Economy<br />

dovetail with ongoing projects to boost<br />

the capacity of the province’s ports and to<br />

explore for gas and oil in the Indian Ocean.<br />

If oil rigs were to start visiting the KZN<br />

coastline on a regular basis, the ship-repair<br />

industry would grow exponentially.<br />

The Oceans Economy is one of the focus<br />

areas that has been chosen by national<br />

government to be part of Operation<br />

Phakisa, a focused, goal-driven attempt<br />

to jump-start a specific economic sector.<br />

Overall, Phakisa intends creating a million<br />

jobs by 2033 and injecting R177-billion into<br />

national GDP.<br />

The decision to build a cruise-ship<br />

terminal at the Port of Durban is a good<br />

example of the kind of decision that is in line<br />

with an “Oceans Economy” approach.<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

12


SPECIAL FEATURE<br />

Geography<br />

The mixed topography of the province allows<br />

for varied agriculture, animal husbandry and<br />

horticulture. The lowland area along the Indian<br />

Ocean coastline is made up of subtropical<br />

thickets and Afromontane Forest. High humidity<br />

is experienced, especially in the far north and this<br />

is a summer rainfall area. The centrally-located<br />

Midlands is on a grassland plateau among rolling<br />

hills. Temperatures generally get colder in the far<br />

west and northern reaches of the province.<br />

The mountainous area in the west – the<br />

Drakensberg – comprises solid walls of basalt and<br />

is the source of the region’s many strongly running<br />

rivers. Regular and heavy winter snowfalls support<br />

tourist enterprises. The Lubombo mountains in the<br />

north are granite formations that run in parallel.<br />

Regions<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has 10 district municipalities and a<br />

metropolitan municipality, the most of any province<br />

in South Africa. In economic terms, the province<br />

offers diverse opportunities.<br />

Southern region<br />

This area is the province’s most populous. The<br />

city of Durban has experienced booms in sectors<br />

such as automotive, ICT, film and call centres.<br />

The promenade now reaches all the way to the<br />

harbour and the Point development will benefit.<br />

Major investments are taking place at the Port of<br />

Durban with the current centrepiece being the<br />

Durban Cruise Terminal. The Container Terminal is<br />

also undergoing an extensive overhaul. Durban’s<br />

conference facilities are well utilised, but many<br />

opportunities still exist in chemicals and industrial<br />

chemicals, food and beverages, infrastructure<br />

development and tourism. Further south, Margate’s<br />

airport and Port Shepstone’s beachfront are assets.<br />

Western region<br />

Also known as the Midlands, this is a fertile<br />

agricultural region which hosts the popular<br />

annual Royal Show. It produces sugarcane, fruit,<br />

animal products, forestry and dairy products.<br />

Pietermaritzburg is the provincial capital and<br />

home to a major aluminium producer along with<br />

several manufacturing concerns, including textiles,<br />

furniture, leather goods and food. The city has good<br />

transport links along the N3 national highway,<br />

excellent schools and a lively arts scene. The<br />

Midlands Meander is a popular tourist destination.<br />

Eastern region<br />

Although most of this area is rural, Richards Bay is<br />

one of the country’s industrial hot spots because of<br />

its coal terminal, port and aluminium smelters. The<br />

Richards Bay Industrial Development Zone (RBIDZ)<br />

is a major economic node and with the possibility of<br />

a power plant being built, the RBIDZ could become<br />

an energy hub. Mining is an important sector in this<br />

region. The other major urban centre is Empangeni<br />

which has several educational institutions. The King<br />

Shaka International Airport is adjacent to the Dube<br />

TradePort, a Special Economic Zone (SEZ) which is<br />

attracting investors.<br />

Northern region<br />

The economic powerhouse is Newcastle in the<br />

north-west: coal-mining, steel processing and<br />

manufacturing are major activities. Some old coal<br />

mines are being reopened by new coal companies<br />

to cater for the country’s power stations’ demand<br />

for the fuel. Game farms, trout fishing and hiking<br />

are part of an attractive package for tourists, and<br />

Zululand is a popular destination for cultural<br />

experiences. The region is rich in Anglo-Boer<br />

War history which includes battle sites such as<br />

Isandlwana and Rorke’s Drift. ■<br />

Credit: Isandlwana Battlefields Route<br />

13 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


<strong>KwaZulu</strong>-<strong>Natal</strong> Provincial Local Government<br />

Government<br />

LISTING<br />

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>'s municipalities.<br />

LISTING<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Provincial Local Government<br />

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>’s provincial government departments. All addresses are located<br />

in ETHEKWINI Pietermaritzburg METROPOLITAN (code 3201) MUNICIPALITY<br />

unless stated otherwise. uMzimkhulu Visit Municipality www.kznonline.gov.za.<br />

263 Dr Pixley ka Seme Street, Durban 4001<br />

Tel: +27 39 259 5000 | Fax: +27 39 259 0427<br />

Office of the Premier<br />

Education<br />

A Tel: guide +27 31 311 to 1111 <strong>KwaZulu</strong>-<strong>Natal</strong>'s | Fax: +27 31 311 2170 municipalities. Website: www.umzimkhululm.gov.za<br />

Government<br />

Premier: Sihle Zikalala<br />

MEC: Kwazikwenkosi Innocent Mshengu<br />

Website: www.durban.gov.za<br />

5th LISTING<br />

Floor, floor, Telkom Moses Building, Mabhida 300 Building, Langalibalele 300 Langalibalele Street Street<br />

Anton Lembede Building, 247 Burger Street<br />

A Tel: AMAJUBA guide +27 33 341 to 3300 <strong>KwaZulu</strong>-<strong>Natal</strong>’s DISTRICT MUNICIPALITY provincial government Tel: ILEMBE +27 departments. 33 846 DISTRICT 5000 | Fax: +27 All MUNICIPALITY<br />

33 addresses 355 1293 are LISTING located<br />

in Fax: ETHEKWINI Unit Pietermaritzburg +27 B9356, 33 331 Ithala 7368 Building, METROPOLITAN Section (code 1, Main 3201) Street, MUNICIPALITY<br />

Madadeni unless Township, stated otherwise. Website: uMzimkhulu 59/61 Mahatma www.kzneducation.gov.za<br />

Visit Gandhi Municipality<br />

St, www.kznonline.gov.za.<br />

KwaDukuza 4450<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> 263 Newcastle Dr Pixley 2940 ka Seme Street, Durban 4001<br />

Tel: +27 32 39437 2599300 5000 | | Fax: Fax: +27 +27 3239 437259 9587 0427<br />

Office Agriculture Provincial<br />

of the and Premier Rural Development Local Education<br />

Health Government<br />

Tel: +27 31 34 311 3291111 7200 | | Fax: +27 31 34311 314 2170 3785<br />

Website: www.ilembe.gov.za<br />

www.umzimkhululm.gov.za<br />

Premier: MEC:<br />

A<br />

Sihle Zikalala<br />

Kwazikwenkosi Innocent Mshengu<br />

Website: guide<br />

Bongiwe<br />

www.durban.gov.za<br />

www.amajuba.gov.za to<br />

Nomusa<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>'s<br />

Sithole-Moloi<br />

municipalities.<br />

MEC: Nomagugu Simelane-Zulu<br />

Government<br />

Cedara 5th Floor, College, Telkom Moses Cedara Building, Mabhida Road 300 Building, Langalibalele 300 Langalibalele Street Street<br />

Anton 1st <strong>Natal</strong>ie KwaDukuza Floor, Lembede Building, 330 Langalibalele Building, 11th Municipality<br />

floor, 247 Street 330 Burger Langalibalele Street Street<br />

Tel: AMAJUBA Dannhauser +27 33 341 335 3300 9100 DISTRICT Municipality MUNICIPALITY<br />

Tel: ILEMBE Tel: +27 +27 33 32846 395 437 DISTRICT 2111 5000 5000 | Fax: +27 MUNICIPALITY<br />

33 355 1293<br />

A Fax: Unit Tel: guide +27 B9356, 33 34331 621 Ithala to 7368 8255 2666 <strong>KwaZulu</strong>-<strong>Natal</strong>’s Building, | Fax: Section +27 341, 621 Main 3114 Street, provincial Madadeni Township, government Website: 59/61 Fax: +27 departments. Mahatma www.kzneducation.gov.za<br />

www.kznhealth.gov.za<br />

32 437 Gandhi 5098 St, KwaDukuza All addresses 4450 are located<br />

in Website: ETHEKWINI Newcastle Pietermaritzburg www.kzndard.gov.za<br />

www.dannhauser.gov.za<br />

2940 METROPOLITAN (code 3201) MUNICIPALITY<br />

unless stated otherwise. uMzimkhulu<br />

Tel: Website: +27 32 www.kwadukuza.gov.za<br />

437 Visit 9300<br />

Municipality<br />

| Fax: www.kznonline.gov.za.<br />

+27 32 437 9587<br />

Agriculture<br />

263<br />

and Rural Development<br />

Tel: Dr +27 Pixley 34 329 ka Seme 7200 Street, | Fax: +27 Durban 34 314 4001<br />

Health Human<br />

3785<br />

Tel: Website: +27 39<br />

Settlements<br />

www.ilembe.gov.za<br />

259 5000 | Fax: +27<br />

and<br />

39 259<br />

Public<br />

0427<br />

Works<br />

Office MEC: Arts Bongiwe Nomusa Sithole-Moloi<br />

Website: eMadlangeni and of the Culture Premier<br />

www.amajuba.gov.za (Utrecht) Municipality<br />

Education<br />

Tel: +27 31 311 1111 | Fax: +27 31 311 2170<br />

MEC:<br />

Website: Mandeni Nomagugu Neliswa<br />

www.umzimkhululm.gov.za<br />

Municipality<br />

Peggy Simelane-Zulu<br />

Nkonyeni<br />

Premier: Cedara MEC: Hlengiwe College, Sihle Cedara Zikalala Goodness Road Slindile Mavimbela<br />

MEC:<br />

Tel: +27 34 331 3041 | Fax: +27 34 331 4312<br />

1st 203 <strong>Natal</strong>ie KwaDukuza Tel: Floor, Church Kwazikwenkosi<br />

+27 Building, 330 32 Street Langalibalele 11th Municipality<br />

Floor,<br />

Innocent Street 330 Langalibalele<br />

Mshengu<br />

Website: www.durban.gov.za<br />

456 8200<br />

Street<br />

5th Tel: <strong>22</strong>2 Dannhauser Website: Floor, +27 floor, Jabu 33 Telkom Ndlovu www.emadlangeni.gov.za<br />

Moses 335 9100 Building, Street Mabhida Municipality<br />

300 Building, Langalibalele 300 Langalibalele Street Street<br />

Anton Tel: Tel: Fax: +27 +27 Lembede 33 32395 392 437 456 Building, 2111 6400 5000 2504| Fax: 247 +27 Burger 33 392 Street 6490<br />

Tel: Fax: AMAJUBA Tel: +27 +27 33 33 34341 264 6213300<br />

3400 8255 2666 DISTRICT | Fax: +27 34 MUNICIPALITY<br />

621 3114<br />

Tel: Website: ILEMBE Fax: +27 +27 33 www.kznhealth.gov.za<br />

www.kznworks.gov.za<br />

www.mandeni.gov.za<br />

32 846 437 DISTRICT 5000 5098| Fax: +27 MUNICIPALITY<br />

33 355 1293<br />

Fax: Website: Unit Newcastle +27 B9356, 33 www.kzndard.gov.za<br />

www.dannhauser.gov.za<br />

331 Ithala 3947368<br />

<strong>22</strong>37 Building, Municipality<br />

Section 1, Main Street, Madadeni Township, Website: 59/61 Website: Mahatma www.kzneducation.gov.za<br />

www.kwadukuza.gov.za<br />

Gandhi St, KwaDukuza 4450<br />

Website: Newcastle<br />

Human Settlements and Public Works<br />

Tel: +27 www.kzndac.gov.za<br />

342940<br />

Provincial<br />

328 7600 | Fax: +27 34 312 1570<br />

Tel: Maphumulo +27 32 437 9300<br />

Treasury Municipality<br />

| Fax: +27 32 437 9587<br />

Agriculture Arts eMadlangeni and Culture and (Utrecht) Rural Development<br />

Municipality<br />

Health<br />

Tel:<br />

MEC: Mandeni Neliswa Municipality<br />

Peggy Nkonyeni<br />

Website: +27 34 www.newcastle.gov.za<br />

329 7200 | Fax: +27 34 314 3785<br />

Website:<br />

for<br />

Tel: +27 www.ilembe.gov.za<br />

Finance: Ravigasen Ranganathan Pillay<br />

32 481 4500<br />

MEC: Community Bongiwe Hlengiwe Nomusa Goodness Safety Sithole-Moloi and Slindile Liaison Mavimbela<br />

MEC:<br />

Tel: +27 34 331 3041 | Fax: +27 34 331 4312<br />

203 Treasury Tel: Church Nomagugu<br />

Fax: +27 House, 32 Street 456 481145 Simelane-Zulu<br />

Website: www.amajuba.gov.za<br />

8200 2053 Chief Albert Luthuli Street,<br />

Cedara <strong>22</strong>2 MEC: Website: HARRY Jabu Bheki Thomas College, Ndlovu www.emadlangeni.gov.za<br />

Ntuli GWALA Cedara Mxolisi StreetRoad<br />

Kaunda DISTRICT MUNICIPALITY 1st <strong>Natal</strong>ie Tel: KwaDukuza<br />

Fax: Website: Floor, +27 +27 Building, 330 www.maphumuloonline.gov.za<br />

32392 897 Langalibalele 4566400 4200 2504 11th Municipality<br />

| floor, Fax: Street +27 33033 Langalibalele 342 39<strong>22</strong>486<br />

6490 Street<br />

Tel: 179 Dannhauser<br />

40 +27 Main Jabu 33 Street, Ndlovu 335 2649100<br />

3400 Ixopo Street Municipality<br />

3276<br />

Tel: Website: Tel: +27 +27 33 www.kznworks.gov.za<br />

32 www.kzntreasury.gov.za<br />

www.mandeni.gov.za<br />

395 4372111<br />

5000<br />

Fax: Tel: Newcastle +27 + +27 33 34 33 39343 621 394 341 834 8255 2666 <strong>22</strong>37 9300 8700 Municipality<br />

| Fax: +27 34 621 3114<br />

Website: Fax: Ndwedwe +27 www.kznhealth.gov.za<br />

32 437 5098 Municipality<br />

Website: Fax: Tel: www.kzndac.gov.za<br />

Provincial<br />

34 328 7600 | Fax: +27 34 312 1570<br />

Maphumulo Treasury<br />

Fax: + +27 www.kzndard.gov.za<br />

www.dannhauser.gov.za<br />

33 39342 8346345<br />

Sport<br />

1701<br />

Website: Tel: +27 www.kwadukuza.gov.za<br />

and Recreation<br />

32 532 5000Municipality<br />

Website: for Finance: Ravigasen Ranganathan Pillay<br />

www.kzncomsafety.gov.za<br />

Human MEC: Hlengiwe Settlements Goodness Slindile and Public Mavimbela Works<br />

www.newcastle.gov.za<br />

www.harrygwaladm.gov.za<br />

Tel: Fax: +27 32481 5324500<br />

5031/2<br />

Arts Community eMadlangeni and Culture Safety (Utrecht) and Liaison Municipality<br />

MEC: Treasury 135 Mandeni<br />

Fax: Website: Pietermaritz Neliswa<br />

+27 House, www.ndwedwe.gov.za<br />

32 481<br />

Municipality<br />

145 Peggy Street 2053 Chief Nkonyeni Albert Luthuli Street,<br />

MEC: Cooperative HARRY Dr Dlamini Hlengiwe Bheki Thomas GWALA Ntuli Mxolisi Goodness Zuma Governance Kaunda DISTRICT Municipality<br />

Slindile Mavimbela<br />

Tel: +27 34 331 3041 | Fax: +27 34 331 4312<br />

and MUNICIPALITY<br />

Traditional<br />

203 Tel: Website: Church +27 33 32 www.maphumuloonline.gov.za<br />

Street<br />

897 4564200 9400 8200 | Fax: +27 33 342 2486<br />

<strong>22</strong>2 179 Affairs<br />

Website: 40 Tel: Jabu Main + 27 Ndlovu www.emadlangeni.gov.za<br />

Street, 39 833 Street Ixopo 10383276<br />

| Fax: + 27 39 833 1179<br />

Tel: Website: Fax: +27 +27 33 www.kzntreasury.gov.za<br />

www.kzn.dsr.gov.za<br />

32392 4566400 2504| Fax: +27 33 392 6490<br />

Tel: MEC:<br />

Tel: Website: +27 + Sipho<br />

+27 33 33 39 www.ndz.gov.za<br />

264 341 Hlomuka<br />

834 3400 9300 8700<br />

Website: Ndwedwe KING www.kznworks.gov.za<br />

www.mandeni.gov.za<br />

CETSHWAYO Municipality DISTRICT MUNICIPALITY<br />

Fax: 330 Newcastle<br />

Fax: +27 Langalibalele + +27 33 33 39 394 342 834 <strong>22</strong>37 Municipality<br />

Street 6345<br />

Sport Social and Development<br />

Recreation<br />

1701<br />

Tel: King +27 Cetshwayo 32 532 5000 House, Kruger Rand Rd, Richards Bay 3900<br />

Website: Tel: Website: Greater +27 www.kzndac.gov.za<br />

33 www.kzncomsafety.gov.za<br />

Hlengiwe Goodness Slindile Mavimbela<br />

www.harrygwaladm.gov.za<br />

395 Kokstad 2831 Municipality<br />

Provincial<br />

34 328 7600 | Fax: +27 34 312 1570<br />

MEC: Maphumulo Nonhlanhla Treasury Mildred Khoza<br />

Fax: Tel: +27 32 35532 7995031/2<br />

2500 Municipality<br />

Fax: Tel: +27 33 39345 7976432<br />

MEC<br />

6600 | Fax: +27 39 727 5501<br />

135 208 Website: Fax: Pietermaritz Hoosen for Finance: www.ndwedwe.gov.za<br />

35 Haffejee 789 Street Ravigasen<br />

1641 Street Ranganathan Pillay<br />

Website: www.newcastle.gov.za<br />

Tel: +27 32 481 4500<br />

Community Cooperative Website: Dr Dlamini Zuma Governance Municipality and Traditional<br />

www.kzncogta.gov.za Safety and Liaison<br />

www.kokstad.gov.za<br />

Treasury Tel: Fax: Website: +27 House, 33 32 www.kingcetshwayo.gov.za<br />

897 264 481145 9400 5402 2053 Chief Albert Luthuli Street,<br />

MEC: Affairs HARRY Tel: +<br />

Bheki Thomas<br />

27 39<br />

Ntuli GWALA Mxolisi Kaunda<br />

833 1038 | DISTRICT Fax: + 27 39 833 MUNICIPALITY<br />

1179<br />

Tel: Fax: Website: +27 33 www.kzn.dsr.gov.za<br />

33 www.maphumuloonline.gov.za<br />

897 3414200 9610 | Fax: +27 33 342 2486<br />

179 MEC: Economic<br />

40<br />

Sipho Hlomuka<br />

Website: uBuhlebezwe Main Jabu Street, Ndlovu Development,<br />

www.ndz.gov.za<br />

Ixopo Street3276<br />

Municipality Tourism and<br />

Website: KING City of www.kzntreasury.gov.za<br />

www.kzndsd.gov.za<br />

www.kzndsr.gov.za<br />

CETSHWAYO uMhlathuze DISTRICT Municipality MUNICIPALITY<br />

Tel: 330 Land<br />

Tel: Langalibalele Affairs Street<br />

Social Development<br />

+ +27 33 39 341 834 9300 8700 7700 | Fax: +27 39 834 1168<br />

Ndwedwe King Tel: +27 Cetshwayo 35 907 5000 Municipality<br />

House, | Fax: Kruger +27 Rand 35 907 Rd, 5444 Richards Bay 3900<br />

Fax: Tel: MEC: Greater Fax: +27 Nomsa 33 395 Kokstad Dube-Ncube<br />

2831 Municipality<br />

MEC: Transport Nonhlanhla Mildred Khoza<br />

Website: + +27 33 www.ubuhlebezwe.gov.za<br />

39342 8346345<br />

Sport and Recreation<br />

1701<br />

Tel: Website: +27 32 www.umhlathuze.gov.za<br />

35532 7995000<br />

2500<br />

Website: Fax: 270 Tel: Jabu +27 www.kzncomsafety.gov.za<br />

33 Ndlovu www.harrygwaladm.gov.za<br />

39345 7976432<br />

Street<br />

MEC:<br />

6600 | Fax: +27 39 727 5501<br />

208 MEC: Fax: Hoosen Hlengiwe<br />

+27<br />

Thomas Bheki 32 35 Haffejee Ntuli 532<br />

Mxolisi Goodness<br />

7895031/2<br />

1641 Street Kaunda Slindile Mavimbela<br />

Website: Tel: +27 33 www.kzncogta.gov.za<br />

www.kokstad.gov.za<br />

264 2500 | Fax: +27 331 310 5416<br />

135 Tel: 172 Website: Pietermaritz +27 Burger 33 www.ndwedwe.gov.za<br />

www.kingcetshwayo.gov.za<br />

264 Street 5402 Street<br />

Cooperative Dr Website:<br />

KWAZULU-NATAL Dlamini www.kzndedt.gov.za<br />

www.kznedtea.gov.za<br />

Zuma Governance BUSINESS Municipality and 2019/20 Traditional 60Tel: Fax: +27 + 27 33 33 897 341 355 9400 9610 8600<br />

Affairs Economic<br />

Tel: uBuhlebezwe + 27 39 833<br />

Development,<br />

1038 Municipality<br />

| Fax: + 27 39 833<br />

Tourism<br />

1179<br />

and<br />

Website: Fax: City + 27 of www.kzn.dsr.gov.za<br />

www.kzndsd.gov.za<br />

www.kzndsr.gov.za<br />

33 uMhlathuze 355 8092 Municipality<br />

MEC: Land Sipho<br />

Website:<br />

Affairs Hlomuka<br />

Tel: +27 www.ndz.gov.za<br />

39 834 7700 | Fax: +27 39 834 1168<br />

Web: KING Tel: +27 www.kzntransport.gov.za<br />

35 CETSHWAYO 907 5000 | Fax: +27 DISTRICT 35 907 5444 MUNICIPALITY<br />

330 MEC: Nomsa Dube-Ncube<br />

Transport<br />

Website: Langalibalele www.ubuhlebezwe.gov.za<br />

Street<br />

Social Development<br />

King Website: Cetshwayo www.umhlathuze.gov.za<br />

House, Kruger Rand Rd, Richards Bay 3900<br />

Tel: 270 Greater +27 Jabu 33 Ndlovu 395 Kokstad 2831 Street Municipality<br />

MEC: Nonhlanhla Thomas Bheki Ntuli<br />

Tel: +27 35 799<br />

Mxolisi Mildred<br />

2500<br />

Kaunda Khoza<br />

Fax: Tel: +27 33 39264 345 7976432<br />

2500 6600 | | Fax: Fax: +27 +27 331 39310 7275416<br />

5501<br />

208<br />

172<br />

172 Fax: Hoosen<br />

Burger<br />

Burger +27 35 Street Haffejee<br />

Street<br />

789 1641 Street<br />

Website: KWAZULU-NATAL www.kzndedt.gov.za<br />

www.kznedtea.gov.za<br />

BUSINESS 2019/20<br />

www.kzncogta.gov.za<br />

www.kokstad.gov.za<br />

60Tel: + 27 33 355 8600 | Fax: + 27 33 355 8092<br />

Website: +27 2733 33 www.kingcetshwayo.gov.za<br />

264 355 5402 8600<br />

Website: www.kzntransport.gov.za<br />

Fax: +27 + 2733 3341 355 9610 8092<br />

Economic uBuhlebezwe Development, Municipality Tourism and<br />

Website: Web: City www.kzntransport.gov.za<br />

of www.kzndsd.gov.za<br />

www.kzndsr.gov.za<br />

uMhlathuze Municipality<br />

Land Affairs<br />

Tel: +27 39 834 7700 | Fax: +27 39 834 1168<br />

Tel: +27 35 907 5000 | Fax: +27 35 907 5444


tourist enterprises. The Lubombo Mountains in the<br />

north are granite formations that run in parallel.<br />

Regions<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Provincial<br />

Government<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> metropolitan<br />

Convention Centre Complex, which hosts the<br />

and district municipalities<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has 11 district municipalities, the<br />

most of any province in South Africa and, in economic<br />

terms, the province offers diverse opportunities.<br />

annual Tourism Indaba.<br />

Southern region<br />

The province's climate lends itself to every kind of This area is the province’s most populous. The city of<br />

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>’s provincial government departments. All addresses are located<br />

outdoor pursuit and its excellent beaches are always Durban has experienced booms in sectors such as<br />

in Pietermaritzburg Durban popular. is the Big sports principal (code 3201)<br />

events city unless<br />

are regularly of the stated province’s otherwise.<br />

hosted only metropolitan Visit www.kznonline.gov.za.<br />

automotive, ICT, film and municipality,<br />

call centres. Major investments<br />

are taking place at the Port of Durban and<br />

eThekwini <strong>KwaZulu</strong>-<strong>Natal</strong>, Metropolitan which has become Municipality. something of<br />

Office of the Premier<br />

Education<br />

a home to mass-participation events such as the there is a possibility that the old airport south of the<br />

Premier: Sihle Zikalala<br />

MEC: Kwazikwenkosi Innocent Mshengu<br />

Comrades Marathon and the Dusi Canoe race. The city could become another port, if the money can be<br />

5th Floor, Telkom province Building, has 300 excellent Langalibalele game Street and nature reserves. Anton Lembede Building, 247 Burger Street<br />

N17<br />

N17 Bethal<br />

Tel: DISTRICT +27 33 341 3300 Isimangaliso MUNICIPALITY Wetland PRINCIPAL Park is a World CITY Heritage Site Tel: +27 33 846 5000 | Fax: +27 33 355 1293 SWAZILAND<br />

KWAZULU-NATAL ErmeloPROVINCE<br />

Fax: +27 33 331 and 7368 helps to fund 80 small businesses associated Website: www.kzneducation.gov.za<br />

Standerton<br />

Mpumalanga<br />

Piet Retief<br />

N11<br />

Amajuba with its business as a tourist Newcastle site.<br />

N2<br />

Agriculture The and building Rural Development<br />

of the King Shaka International Health<br />

Volksrust<br />

Paulpietersburg<br />

Vrede<br />

Pongola<br />

MEC: Bongiwe Airport Nomusa to the Sithole-Moloi north of Durban allows tourists to get MEC: Nomagugu Simelane-ZuluR33<br />

Utrecht<br />

Harry Gwala<br />

Ixopo<br />

R69<br />

Mkuze<br />

to superb beaches and game farms very quickly,<br />

R66<br />

Newcastle<br />

R34<br />

Cedara College, Cedara Road<br />

1st Floor, 330 Langalibalele Street<br />

Vryheid<br />

Free State<br />

Nongoma<br />

Tel:<br />

and the airport has its own industrial development<br />

N3<br />

R34<br />

iLembe +27 33 335 9100<br />

KwaDukuza<br />

Tel: +27 33 395 2111<br />

Dundee<br />

Hluhluwe<br />

Hlabisa<br />

zone, the Dube TradePort. New international direct<br />

Harrismith Glencoe<br />

R65<br />

N2<br />

Fax: +27 33 343 8255<br />

Website: N5www.kznhealth.gov.za<br />

N11<br />

R68 uLundi<br />

St Lucia<br />

flights have been announced; 4.5-million passengers<br />

passed through the airport in 2014/15, almost<br />

R74<br />

R33<br />

Mtubatuba<br />

Website: King www.kzndard.gov.za<br />

Cetshwayo<br />

Richards Bay<br />

Ladysmith<br />

Melmoth<br />

Human Settlements<br />

Bergville<br />

N3 Colenso<br />

and Public Works<br />

eMpangeni<br />

300 000 of whom were foreign visitors or tourists (ACSA).<br />

R74<br />

Winterton<br />

Kranskop<br />

Richards Bay<br />

Arts Uguand Culture<br />

Port Shepstone<br />

MEC: Neliswa Peggy Nkonyeni<br />

Estcourt<br />

Greytown<br />

Gingindlovu<br />

MEC: Hlengiwe Goodness Slindile Mavimbela<br />

203 Church Street Mooi River<br />

R33<br />

KwaDukuza Stanger Darnall<br />

Howick<br />

N2<br />

<strong>22</strong>2 uMgungundlovu<br />

Jabu Ndlovu Geography<br />

Street<br />

Pietermaritzburg<br />

Tel: +27 33 392 6400 | Fax: +27 33 392 6490<br />

Tongaat<br />

Ballito<br />

Tel: +27 33 264 3400<br />

Website: www.kznworks.gov.za<br />

PIETERMARITZBURG<br />

N3<br />

uMhlanga<br />

Underberg<br />

Pinetown<br />

Fax: uMkhanyakude<br />

+27 33 394 The <strong>22</strong>37 mixed topography of Mkuze the province allows for varied<br />

agriculture, animal husbandry and horticulture.<br />

iXopo<br />

DURBAN<br />

R56<br />

aManzimtoti<br />

Website: www.kzndac.gov.za<br />

Provincial Treasury<br />

uMzinto uMkomaas<br />

uMzinyathi The lowland area along Dundee the Indian Ocean coastline MEC for Finance: Ravigasen Ranganathan Pillay<br />

N2<br />

Kokstad<br />

INDIAN OCEAN<br />

Harding<br />

Community is made Safety up of subtropical and Liaison thickets and Afromontane<br />

Hibberdene<br />

Treasury House, 145 Chief Albert Luthuli Street,<br />

N<br />

uMtentweni<br />

Forest. High humidity is experienced, especially in<br />

N2<br />

Port Shepstone<br />

MEC: uThukela Thomas Mxolisi Kaunda Ladysmith<br />

Tel: +27 33 897 4200 | Fax: +27 Margate 33 342 2486<br />

Southbroom<br />

179 Jabu Ndlovu<br />

the<br />

Street<br />

far north, and this is a summer rainfall area. The<br />

Website: www.kzntreasury.gov.za Port Edward<br />

Eastern Cape<br />

Motorway<br />

Main Road<br />

Zululand centrally located Midlands Ulundi is on a grassland plateau<br />

among rolling hills. Temperatures generally<br />

Railway<br />

Tel: + 27 33 341 9300<br />

Fax: + 27 33 342 6345<br />

Sport and Recreation<br />

Website: www.kzncomsafety.gov.za<br />

MEC: Hlengiwe Goodness Slindile Mavimbela<br />

KWAZULU-NATAL BUSINESS 2016/17<br />

13514<br />

Pietermaritz Street<br />

Cooperative Governance and Traditional<br />

Tel: +27 33 897 9400<br />

Affairs<br />

Website: www.kzn.dsr.gov.za<br />

MEC: Sipho Hlomuka<br />

330 Langalibalele Street<br />

Tel: +27 33 395 2831<br />

Fax: +27 33 345 6432<br />

Website: www.kzncogta.gov.za<br />

Economic Development, Tourism and<br />

Land Affairs<br />

MEC: Nomsa Dube-Ncube<br />

270 Jabu Ndlovu Street<br />

Tel: +27 33 264 2500 | Fax: +27 331 310 5416<br />

Website: www.kzndedt.gov.za<br />

LESOTHO<br />

DRAKENSBERG<br />

Social Development<br />

MEC: Nonhlanhla Mildred Khoza<br />

208 Hoosen Haffejee Street<br />

Tel: +27 33 264 5402<br />

Fax: +27 33 341 9610<br />

Website: www.kzndsd.gov.za<br />

Transport<br />

MEC: Thomas Mxolisi Kaunda<br />

LISTING<br />

172 Burger Street<br />

Tel: + 27 33 355 8600<br />

Fax: 15 + 27 33 355 8092KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

Web: www.kzntransport.gov.za<br />

MOZAMBIQUE


TRANSFORMING TO A PLATFORM<br />

Standard Bank is investing heavily in digital transformation.<br />

What we do<br />

At Standard Bank we have begun the important<br />

journey towards being a platform business<br />

which provides a holistic ecosystem of products<br />

and services to our customer. This is driven by<br />

extensive investments in digital transformation,<br />

partnerships, and modern and advanced ways<br />

of working.<br />

We have entrenched new, more effective, and<br />

agile ways of working with cross-functional<br />

teams that embrace a growth mindset and<br />

who are constantly hungry to learn new skills.<br />

Investments in technology infrastructure have<br />

taken us towards being a platform provider<br />

and we continue to invest to complete this<br />

transformation.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Standard Bank’s commercial<br />

success, social relevance and sustainability<br />

depends on having a deep understanding of<br />

our clients’ business. This places a responsibility<br />

on us to focus on solving for the customer in<br />

everything we do.<br />

Imraan Noorbhai, Head<br />

Consumer Client Coverage<br />

Hameed Noormahomed, Head<br />

<strong>Business</strong> Clients Coverage<br />

Nathan Govender, Head<br />

Commercial Client Coverage<br />

Image by Caspar Camille Rubin on Unsplash


Key sectors<br />

Our <strong>Business</strong> Clients segment strategically spans<br />

the entire <strong>KwaZulu</strong>-<strong>Natal</strong>, across all municipal<br />

boundaries covering key sectors such as Public<br />

Sector, Education, Agriculture, Franchising,<br />

Shari’ah, Chinese Banking and an Africa China<br />

Agent Proposition. Through our dedicated,<br />

specialised and highly-skilled teams, we can<br />

deliver a holistic customer-value proposition to<br />

our <strong>Business</strong> and Small Enterprise Banking clients<br />

as their trusted advisors.<br />

Our Commercial Banking segment offers<br />

holistic banking solutions across sectors to<br />

mid-corporate entities including growth<br />

opportunities into African and Chinese markets.<br />

Through our extensive network in Africa, China<br />

(in partnership with ICBC) and global strategic<br />

banking relationships, we work to understand<br />

the needs of our clients and to provide trusted<br />

advice and appropriate solutions that consider<br />

the risks, regulatory environment and realities in<br />

these markets.<br />

Our Consumer and High Net Worth Division aims<br />

to deliver a Universal Financial Services Offering<br />

with a wide range of solutions that are tailored to<br />

suit individual client needs throughout all journeys<br />

in their lives. Our solutions range from Student<br />

Banking to Young Professionals, Elite, Prestige<br />

and Private Banking as well as High Net Worth<br />

Individuals.<br />

Standard Bank Insurance, Assets Management and<br />

Fiduciary Services in <strong>KwaZulu</strong>-<strong>Natal</strong> seamlessly<br />

deliver customised solutions to our clients to<br />

protect, grow and manage their individual needs.<br />

Our purpose is to provide peace of mind by<br />

enabling our clients to achieve their personal<br />

ambitions through best of breed solutions<br />

through the various businesses within the Group:<br />

Insurance (Standard Bank Financial Planning<br />

Services, Standard Bank Insurance Brokers,<br />

Standard Bank’s Direct Life Insurance Services),<br />

Assets Management (Investment Planning,<br />

Offshore Investing, Online Share Trading) and<br />

Fiduciary Services (Estate Planning, Wills Drafting<br />

and Safe Keeping, Estate Administration, and<br />

Trust Services and Beneficiary Care).<br />

What matters most<br />

Focussing on what matters most to our clients<br />

lies at the heart of our business. Standard Bank<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is constantly striving to create<br />

exceptional client experiences which are built<br />

on confidence, trust, thought leadership and an<br />

unwavering commitment to solutioning for our<br />

clients’ needs in the most appropriate way.<br />

Our heritage and intimate knowledge of the<br />

region and its socio-economic circumstances<br />

combined with the knowledge and expertise<br />

of our team of bankers and the wide range of<br />

services on offer means Standard Bank <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> is perfectly placed to realise our vision of<br />

being the leading financial services organisation<br />

in, for and across Africa, delivering exceptional<br />

client experiences and superior value. ■<br />

Sidney Reddy, Head <strong>Business</strong><br />

Clients, Region Coverage<br />

Jean Hattingh, Head Consumer<br />

Clients, Region Coverage<br />

Mano Singh, Head Insurance,<br />

Assets Management & Fiduciary


SPECIAL FEATURE<br />

Ports and exports: <strong>KwaZulu</strong>-<strong>Natal</strong><br />

has an abundance of both<br />

Companies in a wide range of sectors are seeing potential in Africa and China.<br />

A<br />

new era in trade and export has begun<br />

and the traders, logistics operators<br />

and ports of <strong>KwaZulu</strong>-<strong>Natal</strong><br />

are in pole position to take up new<br />

opportunities. Not only is the province strategically<br />

located on the Indian Ocean but it<br />

already has excellent infrastructure which is<br />

being upgraded and improved.<br />

The official date for the new era was 1 January<br />

<strong>2021</strong> for that date marked the launch of the<br />

African Continental Free Trade Area (AfCFTA).<br />

All but one of Africa’s 54 countries have signed<br />

the agreement and a majority of countries have<br />

ratified it. Implementation was postponed for six<br />

months because of Covid-19.<br />

Tariffs on 90% of items are due to be reduced<br />

in the next decade although more time has been<br />

allocated to poorer countries to allow them time<br />

to adapt.<br />

The African market of 1.3-billion people is<br />

expected to grow to 2.5-billion by 2050 but the key<br />

statistic targeted by AfCFTA is intra-African trade.<br />

Credit: TNPA<br />

Exports to the rest of the world made up between<br />

80% and 90% of Africa’s total trade from 2000 to<br />

2017 (UNCTAD). In 2019 about 27% of South Africa’s<br />

exports were delivered to the rest of the continent.<br />

As part of the Southern African Development<br />

Community (SADC) and the Common Market for<br />

Eastern and Southern Africa (COMESA), South<br />

Africa is already part of the most active regional<br />

bodies which are promoting integration and<br />

intra-regional trade. These regional groupings<br />

are best placed to start thinking beyond tariffs:<br />

more efficient customs posts, lower air-freight<br />

costs, better-run ports, regulatory alignment and<br />

improved rail and road infrastructure.<br />

Even before AfCFTA was signed, one of the<br />

largest independent wire manufacturers in<br />

the country, Hendok Group, set about steadily<br />

increasing its exports to other African countries.<br />

With more than 1 000 employees at the factory<br />

in the Phoenix Industrial Park in Durban, the<br />

company makes a number of types of wires and<br />

is the country’s biggest producer of nails.<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

18


SPECIAL FEATURE<br />

Donald Trump’s interests did not stretch<br />

to Africa during his presidency of the US but<br />

he preferred bilateral, rather than regional<br />

agreements so it is surprising that the African<br />

Growth and Opportunity Act (AGOA) survived<br />

the Trump years. The deal, which gives duty-free<br />

access to about 6 500 products from 39 Sub-<br />

Saharan countries, is due to expire in 2025.<br />

As much as African countries’ trade within the<br />

continent will grow, exports will remain key to<br />

adding value and attracting good prices. Trade<br />

between the US and Africa in 2018 was valued at<br />

$41.2-billion.<br />

Awards and China<br />

Opening up new markets is a priority for local<br />

business leaders. The Durban Chamber of<br />

Commerce and Industry partners with Transnet<br />

Port Terminals (TPT) in hosting the annual<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> (KZN) Exporter of the Year<br />

Awards. At the 2019 ceremony, Durban Chamber<br />

Deputy President Gladwin Malishe said, “With<br />

the global economy in a state of flux and<br />

several developed economies becoming more<br />

protectionist, <strong>KwaZulu</strong>-<strong>Natal</strong> and our emerging<br />

exporters need to scout for non-traditional<br />

points of entry into the global market, which are<br />

more open and have more liberal trade policies<br />

and procedures such as China. This is an ideal<br />

time to visit a growth market like China if you<br />

have export aspirations, hence the theme for<br />

our event being Shanghai Nights.”<br />

The award winners on that occasion offer a<br />

good sample of the strength and variety of the<br />

provincial economy. Winners included Imperial<br />

Armour (body armour), Sappi (forestry and paper),<br />

Sumitomo Rubber (tyres) and the Mediterranean<br />

Shipping Company. Finalists came from sectors as<br />

diverse as engineering, condiment-making and<br />

boat-building.<br />

Approximately <strong>22</strong>0 TEU equivalent containers<br />

(20-foot containers) of Sappi products pass<br />

through the Port of Durban every day.<br />

At the awards evening, the Emerging<br />

Exporters Development Programme was<br />

launched, a joint initiative by TPT and the Durban<br />

Chamber to develop emerging exporters. The<br />

first beneficiaries were Get2Natural Beauty; Gugu<br />

Mobile Boutique; Samac Engineering Solutions;<br />

Siyazenzela Trailers & Truck Bodies and Zikhe.<br />

The award for small and medium exports<br />

(a new category) was sponsored by the Small<br />

Enterprise Development Agency (Seda KZN).<br />

One of the event sponsors, Trade & Investment<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> (TIKZN), is an agency dedicated<br />

to promoting the province as an investment<br />

destination and to facilitating trade by helping<br />

local companies to gain access to international<br />

markets.<br />

In 2020, 103 export opportunities were<br />

created with 20 companies enrolling for the<br />

exporter competitiveness programme. This<br />

initiative sustained 1 605 jobs, according to the<br />

Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Another awards ceremony, organised by<br />

the South African Capital Equipment Export<br />

Council (SACEEC) and Specialised Exhibitions<br />

Montgomery as part of the Southern African<br />

Local Manufacturing Expo, saw Bell Equipment<br />

win the “Exporter of the Year” in the large<br />

category (over R200-million turnover). Exports<br />

to more than 80 countries make up about 40%<br />

of the company’s turnover and local content of<br />

those exports is at 70%. Bell is best known for its<br />

heavy equipment which is primarily used in the<br />

mining and construction sectors.<br />

Infrastructure<br />

With two of Africa’s biggest ports in Durban<br />

and Richards Bay (pictured) and the King<br />

Shaka International Airport and associated<br />

Dube TradePort, <strong>KwaZulu</strong>-<strong>Natal</strong> has superb<br />

infrastructure to support trade and export<br />

activity. The N3 highway linking Durban with the<br />

Highveld and the industrial hub of South Africa is<br />

the country’s busiest road.<br />

Durban harbour is South Africa’s premier<br />

multi-cargo port and is Africa’s busiest, handling<br />

in excess of 80-million tons of cargo per annum<br />

(StatsSA). The Port of Durban is a key hub in the<br />

transport and logistics chain, with 60% of all<br />

imports and exports passing through it.<br />

The Port of Durban exports a broad range<br />

of products, including automotive vehicles. In<br />

2018/19, the year in which South Africa’s total<br />

vehicle exports topped 350 000, Durban’s Car<br />

19 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


SPECIAL FEATURE<br />

Credit: Anton Swanepoel<br />

Terminal boasted a record of putting more than<br />

500 000 fully-built-up units (FBUs) through the<br />

port. The figure includes FBUs that are not motor<br />

vehicles and includes vehicle imports. Toyota’s<br />

popular Fortuner is exported at a rate of about<br />

150 per month.<br />

All aspects of the port are expanding or<br />

being upgraded. Within the Port of Durban<br />

there are a number of specialised facilities.<br />

Several projects are underway to increase<br />

capacity. Transnet National Ports Authority<br />

(TNPA) and Transnet Port Terminals (TPT) are<br />

combining to upgrade infrastructure and buy<br />

new equipment to improve efficiencies at the<br />

Ro-Ro terminal (vehicles and break bulk) and<br />

Maydon Wharf (mixed cargo and agriculture)<br />

but the biggest project is at the Durban<br />

Container Terminal (DCT).<br />

DCT has a capacity of 3.6-million TEUs<br />

(twenty-foot equivalent unit) and the current<br />

project aims to extend that beyond five-million<br />

TEUs. The Brics New Development Bank has<br />

approved a loan of $200-million for the DCT<br />

expansion project.<br />

TNPA states that the multiplier effect in the<br />

marine sector creates five jobs for every direct<br />

job. A large drydock project created direct jobs<br />

for 29 skilled employees.<br />

The Port of Richards Bay, 160km to the<br />

north-east of Durban and 465km south of the<br />

Mozambican capital of Maputo, handles more<br />

than 80-million tons of bulk cargo every year.<br />

Richards Bay is a deepwater port. Among its 13<br />

berths are terminals that handle dry-bulk ores,<br />

minerals and break-bulk cargo.<br />

The Richards Bay Coal Terminal (RBCT), with<br />

capacity of 91-million tons per year, is South<br />

Africa’s primary portal for the export of coal. In<br />

2020, 65 collieries delivered coal to RBCT. The<br />

quay of the RBCT is 2.2km long with six berths<br />

and four ship-loaders. The 276ha site contains a<br />

stockyard that can store 8.2-million tons while the<br />

terminal itself has a design capacity of 91-million<br />

tons per year. More than 900 ships visit RBCT<br />

every year.<br />

In 2020, 92% of South African coal went to<br />

Asia, with India and Pakistan being the biggest<br />

importers. Africa imported less than the previous<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

20


SPECIAL FEATURE<br />

year and made up a total of 5% of volumes while<br />

3% went to Europe.<br />

Among the exporters which use RBCT<br />

are Anglo Operations, ARM Coal, Exxaro Coal,<br />

Glencore Operations South Africa, Kangra Coal,<br />

Koornfontein Mines, Mbokodo, Optimum Coal<br />

Terminal, Sasol Mining, South African Coal Mine<br />

Holdings, South Dunes Coal Terminal, South32<br />

Coal Holdings (which is selling to Seriti), Tumelo<br />

Coal Mines and Umcebo Mining. Several junior<br />

miners also have rights.<br />

TNPA has approved in principle the<br />

construction of a floating dock near the existing<br />

Small Craft quay. TNPA will have to create new<br />

onshore infrastructure and do some dredging<br />

before it can call for tenders from the private<br />

sector to build the dock, which would be able to<br />

handle large and ultra-large cargo vessels.<br />

The authority that runs the ports at Durban<br />

and Richards Bay, TNPA, and Transnet Freight Rail<br />

(TFR) have been working with the private sector to<br />

try to improve efficiencies at both ports. Backlogs<br />

at Durban in particular have proved frustrating<br />

for exporters. Logistics company OneLogix has<br />

opened its own distribution hub in Umlaas<br />

because of crowded conditions and slow loading.<br />

The other entity involved in the loading and<br />

unloading equation, TPT, is investing R2-billion<br />

in new equipment to improve coordination<br />

between truckers, tax authorities, port staff and<br />

ship’s captains.<br />

Dube TradePort has facilities devoted to<br />

logistics, warehousing and export support.<br />

Proximity to the airport is vital and freight<br />

volumes are growing.<br />

Financing<br />

Four countries currently account for 41.7% of<br />

intra-African trade, according to the Export Credit<br />

Insurance Corporation of South Africa (ECIC). The<br />

ECIC has invested in the African Export Import Bank<br />

to boost intra-continental trade to $250-billion.<br />

The South Africa-Africa Trade and Investment<br />

Promotion Programme has the same goal.<br />

The ECIC provides export credit and<br />

investment guarantees, stepping in where<br />

commercial banks might be risk-averse to<br />

support private investment.<br />

Standard Bank has launched a product<br />

to assist African importers in evaluating<br />

and choosing Chinese suppliers. Faced with<br />

daunting variety, language and cultural<br />

differences, the prospect of having to pay cash<br />

upfront to unseen suppliers or limiting supply<br />

choices to a small group of previously used<br />

suppliers, African importers can use the Africa<br />

China Agent Proposition (ACAP) to validate<br />

quality while having sight of the logistics<br />

process. Standard Bank is using its partnership<br />

with shareholder the Industrial and Commercial<br />

Bank of China (ICBC) to create the ACAP, which<br />

puts importers in touch with agents and is<br />

underpinned by a letter of credit. Standard Bank<br />

is Africa’s biggest bank and ICBC is the world’s<br />

biggest bank.<br />

In preparation for AfCFTA, development<br />

finance institutions and banks have been<br />

developing methods of trading in local<br />

currencies, rather than hard currencies like the<br />

US dollar. The African Virtual Trade-Diplomacy<br />

Platform (AVDP) is a private-sector initiative by<br />

more than 20 companies (in partnership with<br />

the AU Commission) which will support the<br />

AfCFTA by enabling member states to participate<br />

effectively and securely.<br />

Banking groups such as Citi have been<br />

investing heavily in digital platforms related to<br />

payments infrastructure. Many African traders<br />

already do their banking on hand-held devices<br />

and so the market is ready for more innovation<br />

in taking digital payments further into the<br />

world of trade.<br />

Developing reliable cross-border payment<br />

platforms will be vital in supporting increased<br />

intra-African trade.<br />

The European Investment Bank is the<br />

investment arm of the European Union and often<br />

partners with African institutions.<br />

China has a wide range of financial entities<br />

which are active across a range of sectors in Africa.<br />

These entities include the China Development<br />

Bank (CDB), the China International Trade and<br />

Investment Corporation (CITIC), China Export<br />

and Credit Insurance Corporation (CECIC), China<br />

Export Credit Insurance Corporation (Sinosure)<br />

and the China Export-Import Bank. ■<br />

21 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


FOCUS<br />

iLembe District is packed with<br />

investment opportunities<br />

Enterprise iLembe is driving economic development<br />

through trade and investment.<br />

Enterprise iLembe is an Economic Development<br />

Agency of the iLembe District Municipality with<br />

a mandate to drive economic development and<br />

to promote trade and investment in the region.<br />

Vision<br />

To be a leading economic development agency<br />

that enables the iLembe District to be a destination<br />

of choice for investment, business and tourism.<br />

Mission<br />

Working with business, communities and<br />

government to drive economic development in<br />

the iLembe District to ensure inclusive economic<br />

growth and job creation.<br />

The philosophy that drives Enterprise iLembe<br />

is built on promoting a participatory process<br />

where local people from all sectors work together<br />

to stimulate local commercial activity, resulting in<br />

a resilient and sustainable economy. The iLembe<br />

district is located in <strong>KwaZulu</strong>-<strong>Natal</strong> and is made up<br />

of four local municipalities, namely KwaDukuza,<br />

Maphumulo, Mandeni and Ndwedwe.<br />

Being strategically located between the two<br />

major South African harbours of Durban and<br />

Richards Bay, iLembe District is the highestpriority<br />

development corridor in the province of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>. The close proximity to the King<br />

Shaka International Airport and Dube TradePort<br />

also connects the district directly to international<br />

markets.<br />

These are all major factors in the development<br />

of projects that will take the economy of the<br />

district to new heights, and the role of Enterprise<br />

iLembe is to ensure that the business environment<br />

is conducive to investment and business activity.<br />

Enterprise iLembe partners with various<br />

stakeholders such as Trade and Investment KZN,<br />

the iLembe Chamber of Commerce, various<br />

King Shaka International Airport<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

<strong>22</strong>


FOCUS<br />

Sugarcane fields<br />

sector departments as well as the family of local<br />

municipalities to position the iLembe District as<br />

an investment destination of choice.<br />

The agency works with iLembe Chamber<br />

of Commerce in a programme called iLembe<br />

<strong>Business</strong> Confidence Index aimed at providing<br />

a picture of the business confidence in<br />

the iLembe District, as well as an overall<br />

business outlook. This biannual research<br />

helps stakeholders to draw intelligence for<br />

investment promotion, business retention and<br />

business activities.<br />

The establishment of a district <strong>Business</strong><br />

Incubator Facility is aimed at providing<br />

assistance for the start-up and growth stages of<br />

entrepreneurs or SMMEs in the district, assisting<br />

them with access to technical and businessrelated<br />

skills, necessary for the business growth<br />

process. It is essentially the one-stop shop<br />

for all business-related information, ensuring<br />

compliance with all necessary regulations and<br />

also facilitating access to funding for SMMEs<br />

within the district. ■<br />

Contact details<br />

Manager: Tourism and Investment<br />

Cheryl Peters<br />

Physical address: Corner Ballito Drive and Link<br />

Road, Ballito, <strong>KwaZulu</strong>-<strong>Natal</strong>, North Coast<br />

Postal address: PO Box 593, Ballito 4420<br />

Tel: +27 32 946 1256<br />

Email: cheryl@enterpriseilembe.co.za<br />

Website: www.enterpriseilembe.co.za<br />

23 KWAZULU-NATAL <strong>2021</strong>/<strong>22</strong>


KEY SECTORS<br />

Overviews of the main economic<br />

sectors of Kwazulu-<strong>Natal</strong><br />

Agriculture 26<br />

Foresty and paper 30<br />

Mining 31<br />

Engineering 32<br />

Oil and gas 33<br />

Construction and property 36<br />

Tourism 37<br />

Manufacturing 38<br />

Automotive 39<br />

Education and training 40<br />

Water 44<br />

Energy 45<br />

Banking and financial services 46<br />

Development finance and<br />

SMME support 48<br />

The Richards Bay Coal Terminal has the design capacity of 91-million tons of coal per annum. In 2020,<br />

70.2-million tons of coal was exported, mostly to Asia. Shareholders include all of South Africa’s biggest<br />

coal-mining companies. Credit: Richards Bay Coal Terminal. Credit: RBCT


OVERVIEW<br />

Agriculture<br />

A Value Chain Master Plan promises solutions for the sugar industry.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is South Africa’s major sugar-producing province.<br />

A start has been made on tackling the many challenges<br />

faced by the sugar industry: in 2020 the Sugarcane<br />

Value Chain Master Plan 2030 was signed by two national<br />

government ministers and various sector participants. Among<br />

the steps to be taken include diversifying revenue streams and an<br />

agreement by users and retailers to buy more South African sugar.<br />

Imports have a devastating impact on the local industry.<br />

Two mills have recently closed, the Umzimkulu mill run by Illovo<br />

Sugar and Tongaat Hulett’s Darnall mill. With a good crop expected<br />

in 2020/21, this will put additional pressure on the country’s<br />

remaining 12 mills.<br />

An important part of the transformation of the sugar industry<br />

involves supporting small-scale farmers. Of the 10 443 farmers who<br />

supply Tongaat Hulett, 94% are small-scale farmers. The Illovo Small-<br />

Scale Grower Cane Development Project used 119 local contractors<br />

to develop the fields of 1 630 new growers on 3 000ha. Production<br />

sent to the company’s Sezela factory more than doubled and income<br />

for the growers is expected to be about R64-million annually. National<br />

Treasury and the SA Canegrowers were partners in the project.<br />

SA Canegrowers represents 23 866 growers and is responsible<br />

for the production of 18.9-million cane tons. A 2019 project, in<br />

which five commercial sugarcane farmers donated 10 tons each of<br />

seedcane to five small-scale farmers has been a success. Lilian Dube<br />

(pictured), was one of the recipients in the Amatikulu region and she<br />

has prospered with the addition of sugarcane to the variety of crops<br />

on her farm.<br />

Neither of the Big Two companies relies exclusively on South<br />

African sugar earnings: Tongaat Hulett has a big property portfolio<br />

and Illovo draws most of its profit from operations elsewhere in<br />

Africa. Diversification is vital for the future of sugar producers and<br />

power generation will be an important part of that.<br />

The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and<br />

can store more than half-a-million tons of sugar. It also has a molasses<br />

mixing plant.<br />

Agricultural assets<br />

Of <strong>KwaZulu</strong>-<strong>Natal</strong>’s 6.5-million hectares of agricultural land, 18% is arable<br />

and the balance is suitable for the rearing of livestock. The province’s<br />

forests occur mostly in the southern and northern edges of the province.<br />

SECTOR INSIGHT<br />

Commercialisation of goat<br />

farming will benefit smallscale<br />

farmers.<br />

The coastal areas lend<br />

themselves to sugar production<br />

and fruit, with subtropical fruits<br />

doing particularly well in the<br />

north. <strong>KwaZulu</strong>-<strong>Natal</strong> produces<br />

7% of South Africa’s citrus fruit.<br />

The Coastal Farmers Co-operative<br />

represents 1 400 farmers.<br />

TWK is a R6-billion operation<br />

that originated in forestry (as<br />

Transvaal Wattlegrowers Cooperative)<br />

but which is now a<br />

diverse agricultural company<br />

with seven operating divisions.<br />

It has 19 trade outlets in the<br />

province and 21 in Swaziland<br />

and Mpumalanga.<br />

Beef originates mainly in the<br />

Highveld and Midlands areas,<br />

with dairy production being<br />

undertaken in the Midlands and<br />

south. The province produces<br />

18% of South Africa’s milk.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s subsistence<br />

farmers hold 1.5-million cattle,<br />

which represents 55% of the<br />

provincial beef herd, and their<br />

goat herds account for 74%<br />

of the province’s stock. The<br />

Midlands is also home to some<br />

of the country’s finest racehorse<br />

stud farms. The area around<br />

Camperdown is one of the<br />

country’s most important areas<br />

for pig farming. Vegetables<br />

grow well in most areas, and<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

26


Amatikulu small-scale farmer Lilian Dube and SA Canegrowers’ Area Manager Sinenhlanhla Njoko<br />

admire Dube’s seedcane plot. The seed was donated by commercial growers in the northern region.<br />

Credit: SA Canegrowers.<br />

some maize is grown in the north-west. Nuts such as pecan and<br />

macadamia thrive.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has two colleges offering higher qualifications in<br />

agriculture, Cedara in the Midlands and the Owen Sitole College of<br />

Agriculture near Empangeni.<br />

Enterprise iLembe is the development arm of the iLembe<br />

District Municipality and is looking for investors to further develop<br />

an agro-processing hub near the King Shaka International Airport<br />

and Dube TradePort.<br />

So-called superfoods have potential to grow the agricultural<br />

sector via greatly increased exports: these include avocados, pecans<br />

and dates. Another possibility is macadamia nuts (already a thriving<br />

sector in other parts of the country) and in new areas such as the<br />

farming of rabbits.<br />

Among the new lines of agricultural produce being investigated<br />

is cannabis. The provincial government initiated a feasibility study to<br />

identify opportunities in the production of cannabis and downstream<br />

beneficiation. A Cannabis Investor Protocol has been developed and<br />

a dedicated Cannabis Unit has been established within the Moses<br />

Kotane Institute to assist emerging cultivators and entrepreneurs<br />

with infrastructure assistance, funding and licensing.<br />

Another initiative of the Department of Agriculture and Rural<br />

Development (DARD) is to promote the commercialisation of goat<br />

farming. In 2020/21, DARD assisted farmers to plant 10 658ha for food<br />

security and R30-million has been set aside for the establishment<br />

of five large nurseries to produce seedlings and fruit trees. The<br />

ONLINE RESOURCES<br />

Fresh Produce Exporters Forum: www.fpef.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Agricultural Union: www.kwanalu.co.za<br />

Milk Producers Organisation: www.mpo.co.za<br />

South African Canegrowers Association: www.sacanegrowers.co.za<br />

South African Sugar Association: www.sasa.org.za<br />

programme will employ 290<br />

agricultural graduates.<br />

The National Department<br />

of Rural Development and Land<br />

Reform (DRDLR) has launched an<br />

Agri-parks programme to support<br />

small-scale farmers and to boost<br />

other businesses related to<br />

agriculture such as abattoirs and<br />

transport operators. <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> is one of four provinces<br />

where pilot projects have been<br />

carried out. The plan is to have an<br />

Agri-park in each of South Africa’s<br />

44 district municipalities with<br />

farmers owning at least 70% of<br />

the venture.<br />

There are three components<br />

to the fully realised Agri-park<br />

concept:<br />

• Farmer Production Support<br />

Unit: links farmer with markets,<br />

collection and short-term storage,<br />

local processing and the<br />

introduction of mechanisation.<br />

• Agri-hub: equipment-hire,<br />

processing, packaging,<br />

logistics and training.<br />

• Rural Urban Market Centre:<br />

contract-based links to local<br />

and international markets,<br />

long-term storage and market<br />

intelligence. ■<br />

27 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


Producing crops that<br />

feed our country’s growth<br />

Standard Bank supports the full agribusiness value chain.<br />

I<br />

n <strong>KwaZulu</strong>-<strong>Natal</strong> sugar is like gold. Large-scale<br />

sugar production has always played an important<br />

role in <strong>KwaZulu</strong>-<strong>Natal</strong>’s history and the sugar industry<br />

is a significant part of South Africa’s economy<br />

given its agricultural and industrial investment<br />

and significance as a foreign exchange earner.<br />

A R16-billion industry, it is a large employer with<br />

85 000 direct jobs and an estimated 350 000<br />

jobs indirectly attributable to sugar production.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is responsible for nearly 80% of the<br />

country’s sugar production, with 20 000 growers<br />

producing 1.68-million tons of sugar annually.<br />

Standard Bank provides banking services and<br />

finance to the entire value chain of this vital<br />

industry, from input suppliers such as cooperatives<br />

and chemical companies to contractors<br />

and transporters, as well as specialist services and<br />

the growers and millers.<br />

We consider all types of agricultural finance, from<br />

tailor-made long-term products for purchases of<br />

fixtures and property, mid-term asset finance as<br />

well as looking after short-term working capital<br />

needs for operational costs and seasonal expenses.<br />

Transactional banking, hire purchase, credit and<br />

fleet management are also vital for cane hauliers.<br />

Agribusiness offering<br />

While many sectors in South Africa struggled in<br />

2020 because of Covid-19 restrictions, agriculture<br />

enjoyed a strong year. According to Statistics South<br />

Africa the agriculture, forestry and fisheries sector’s<br />

Q3 2020 seasonally adjusted and annualised growth<br />

rate was 18.5% and was valued at R79.4-billion.<br />

While agriculture remains the biggest contributor to<br />

South Africa’s GDP, it is easy to forget its importance<br />

and the impact it has on our lives – producing crops<br />

that are crucial to our country’s growth.<br />

That’s why Standard Bank is committed to providing<br />

farmers with a full banking suite. Agriculture is a<br />

specialised sector with more than 30 sub-industries,<br />

and a vast field of knowledge is required to<br />

understand each subsector and how each of these<br />

industries’ cycles are integrated.<br />

With 35 in-field agents located in all provinces<br />

who are experts in those specific geographical<br />

areas, we are able to assist with cash flow and<br />

financial planning.<br />

Standard Bank continues to prioritise providing a<br />

world-class service, knowledge and expertise. We<br />

believe that when a farmer wins, we all win. ■<br />

Image by Jan Kopřiva on Unsplash


OUR FARMERS<br />

ARE A REAL<br />

TREAT.<br />

Their hard work and<br />

dedication sweeten<br />

the deal.<br />

That’s why Standard Bank supports farmers, offering a full banking suite<br />

that includes everything from agricultural production loans to crop insurance.<br />

Find out more at standardbank.co.za/agribusiness<br />

29 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

Standard Bank is an authorised financial services and registered credit provider (NCRCP15).<br />

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). GMS-17909 02/21


OVERVIEW<br />

Forestry and paper<br />

A beekeeping project has reduced forest fires.<br />

SECTOR INSIGHT<br />

Nampak produces crêpe<br />

paper at Verulam.<br />

Since Sappi started allowing an organisation to place hives<br />

in its forests five years ago, the concept has grown into a<br />

fully-fledged beekeeping programme that sustains families<br />

– and reduces uncontrolled fires.<br />

Prior to inviting African Honey Bee onto its properties, Sappi<br />

often had to deal with fires caused by people trying to find honey<br />

by smoking out hives. A formal training programme has created<br />

entrepreneurs who are now reaping the rewards. In 2017, African<br />

Honey Bee purchased five tons of honey from 120 beekeepers. This<br />

grew to 10 tons from 500 beekeepers in 2019 and training has been<br />

offered in vegetable and poultry farming. The honey is packaged and<br />

sold throughout South Africa as Sizana traceable honey.<br />

Sappi has 19 production facilities on three continents (of<br />

which five are in Southern Africa) and 12 800 employees in over 35<br />

countries. Sappi’s Stanger Mill is situated close to sugar fields from<br />

which it takes bagasse (dry sugar cane pulp) for use in its production<br />

processes. Typek office paper is made at this mill, which has the<br />

capacity to produce 80 000 tons of paper and 30 000 tons of tissue.<br />

At the company’s Tugela Mill up to 200 000 tons per annum of<br />

containerboard (corrugating medium) can be manufactured from<br />

recycled and virgin fibre. The giant Sappi Saiccor mill 50km south of<br />

Durban is the world’s biggest manufacturer of dissolving wood pulp.<br />

The Mondi Group has grown into an international behemoth with<br />

26 000 employees and operations in more than 30 countries. In 2019<br />

Mondi announced that its primary listing would be in London and the<br />

JSE will carry the company’s secondary listing.<br />

Mondi’s Merebank Mill produces a range of office paper products<br />

including the well-known brand, Mondi Rotatrim. Uncoated woodfree reels<br />

ONLINE RESOURCES<br />

Credit: Sappi<br />

Forestry South Africa: www.forestry.co.za<br />

Sizana honey: www.peels.co.za<br />

South African Institute of Forestry: www.saif.org.za<br />

Technical Association of the Pulp and Paper Industry of South Africa:<br />

www.tappi.org<br />

are manufactured for the South<br />

African and Sub-Saharan African<br />

markets. At Richards Bay, eucalyptus<br />

fibre is used to make a premier-grade<br />

bleached hardwood pulp and a white<br />

top kraft linerboard is also produced.<br />

Major investments at Richards Bay<br />

have improved air quality, reduced<br />

water consumption and reduced the<br />

amount of solid waste.<br />

Nampak produces crêpe paper<br />

at Verulam and Rafalo produces<br />

tissue paper. SA Paper Mills is<br />

another paper producer.<br />

Mpact’s upgrade of its Felixton<br />

mill has increased capacity and<br />

improved efficiency. The project<br />

cost R765-million and takes overall<br />

production up to 215 000 tons<br />

and a lightweight containerboard<br />

option has been included in the<br />

product lines.<br />

Mpact has plastics and paper<br />

operations, with the paper section<br />

divided into three divisions: paper<br />

manufacturing, corrugated and<br />

converted paper products and<br />

recycling efficiency. The project<br />

cost R765-million and takes overall<br />

production up to 215 000 tons<br />

and a lightweight containerboard<br />

option has been included in the<br />

product lines.<br />

Mpact has plastics and<br />

paper operations, with the<br />

paper section divided into three<br />

divisions: paper manufacturing,<br />

corrugated and converted paper<br />

products and recycling. ■<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong> 30


OVERVIEW<br />

Mining<br />

Coal mining and processing has resumed.<br />

South32’s Hillside aluminium smelter at Richards Bay produced<br />

a record amount of saleable product in the year<br />

to June 2020, despite variable energy supply.<br />

The Covid pandemic in 2020 added to the<br />

ongoing problem of reliable electricity supply, which is a<br />

critical issue for a big energy user like a smelter. The crisis<br />

affecting South Africa’s power utility, Eskom, is causing<br />

South32, the Australian owner of the Hillside aluminium<br />

smelter to rethink their operations there. In 2019<br />

about 400 workers took early retirement or voluntary<br />

retrenchment packages. In early <strong>2021</strong>, a new contract<br />

with Eskom was still under discussion.<br />

Most of the product from the smelter (high-quality<br />

primary aluminium ingot) is exported but some liquid metal<br />

form is sent to Isizinda Aluminium which supplies Hulamin, a<br />

company that has had a rolling mill in Pietermaritzburg since<br />

1949. Hulamin is the only major aluminium rolling operator<br />

in the region and it makes rolled products and extrusions.<br />

Other processing facilities in the province include the<br />

steel plant owned by Arcelor Mittal in Newcastle and Safa Steel’s metalcoating<br />

factory in Cato Manor.<br />

Coal mining resumed in northern <strong>KwaZulu</strong>-<strong>Natal</strong> at the start of<br />

<strong>2021</strong>, after an enforced period under care and maintenance because<br />

of the pandemic. Three shafts owned by Zululand Anthracite Colliery<br />

(ZAC) are currently functioning and a fourth is expected to come<br />

on stream in 20<strong>22</strong>, when the mine should be able to produce onemillion<br />

tons of coal.<br />

Some of the coalfields of the province have been revived.<br />

Petmin’s Somkhele Anthracite Mine, north of Richards Bay, has one<br />

of the biggest reserves of open-pit anthracite in South Africa, with<br />

measured and indicated reserves of more than 51-million tons across<br />

its four areas.<br />

RBM mines the minerals sands of the northern <strong>KwaZulu</strong>-<strong>Natal</strong> coast<br />

and operates out of Richards Bay. The main products of the RBM mine are<br />

zircon, rutile, titania slag, titanium dioxide feedstock and high-purity iron.<br />

Luxembourg-based Traxys Africa, which has chrome mines in<br />

ONLINE RESOURCES<br />

Geological Sciences, University of KZN: www.geology.ukzn.ac.za<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

SECTOR INSIGHT<br />

KZN Sands offers<br />

learnerships.<br />

Credit: South32<br />

Mpumalanga and Limpopo<br />

provinces, runs a high-carbon<br />

ferrochrome plant at Richards Bay.<br />

The KZN Sands mineral sands<br />

operation comprises a central<br />

processing complex in Empangeni<br />

and the Fairbreeze Mine.<br />

Expenditure over several years is<br />

expected to rise to R5-billion as it<br />

expands. Tronox, which is listed on<br />

the New York Stock Exchange, is the<br />

major shareholder in KZN Sands.<br />

KZN Sands offers learnerships at<br />

Mtunzini and Empangeni.<br />

Finnish company Metso is<br />

spending about R53-million on<br />

building a second furnace at its<br />

Isithebe foundry in the iLembe<br />

District Municipality. This is in<br />

response to increased demand<br />

for large crusher wear parts. The<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> foundry is one of<br />

five foundries the company runs<br />

on four continents. ■<br />

31<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


OVERVIEW<br />

Engineering<br />

A respected university unit is expanding its brief.<br />

SECTOR INSIGHT<br />

The steel industry is<br />

under pressure.<br />

Credit: WASH Centre<br />

The Pollution Research Group (PRG) at the University<br />

of <strong>KwaZulu</strong>-<strong>Natal</strong> (UKZN) has a new name and an<br />

extended brief. It has been re-established as the Water,<br />

Sanitation and Hygiene Research and Development<br />

Centre (WASH R&D Centre).<br />

The unit (pictured) continues to fall under Chemical Engineering,<br />

where 34 staff contribute to lecture modules in a variety of fields<br />

but which now go far beyond the original brief of water in industry.<br />

Having seen a total of <strong>22</strong> PhD and 93 Masters’ students graduate under<br />

the supervision of unit staff, the WASH R&D Centre has expanded<br />

its research scope to include agricultural economics, crop and<br />

soil sciences, microbiology, mechanical and civil engineering and<br />

development studies. The Bill & Melinda Gates Foundation is among<br />

the unit’s funders.<br />

In addition to Chemical Engineering, the School of Engineering<br />

offers a range of degree options in nine areas of specialisation including<br />

Bioresources, Electronic and Computer Engineering and Land Surveying.<br />

All of the province’s biggest industries require sophisticated<br />

engineering skills: aluminium smelters in Richards Bay and steel works<br />

in Newcastle, Richards Bay and Cato Ridge. There are also chemicals<br />

and plastics production plants, and large automotive works.<br />

Marine repair and engineering are important, with established<br />

companies such as EBH South Africa offering comprehensive services<br />

at the ports of Durban and Richards Bay.<br />

Dormac, which is headquartered in the Bayhead area of the<br />

Port of Durban, is best known for its marine engineering but it<br />

ONLINE RESOURCES<br />

Consulting Engineers South Africa: www.cesa.co.za<br />

South African Wire Association: www.sawa.co.za<br />

Southern African Institute for Industrial Engineering: www.saiie.co.za<br />

Wash R&D Centre: www.washcentre.ukzn.ac.za<br />

offers specialised services to<br />

the sugar industry and provides<br />

machinery for industrial giants<br />

like Toyota and Defy.<br />

One of the largest<br />

independent wire manufacturers<br />

in the country, Hendok Group,<br />

is steadily increasing its exports<br />

to other African countries. With<br />

more than 1 000 employees<br />

at the factory in the Phoenix<br />

Industrial Park in Durban, the<br />

company makes a wide variety of<br />

wires and is the country’s biggest<br />

producer of nails.<br />

ArcelorMittalSA is Africa’s<br />

biggest steelmaker and it has a<br />

plant at Newcastle, but tough<br />

times in the steel business have<br />

meant that the company has shut<br />

down some of its facilities. The first<br />

to be shuttered was Saldanha in<br />

the Western Cape and an analysis<br />

of the profitability of other centres<br />

is underway.<br />

A big project that has created<br />

a lot of work for engineers is the<br />

multi-year Western Aqueduct<br />

project to bring fresh water to<br />

greater Durban.<br />

The Transnet Engineering<br />

(TE) plant in the Port of Durban<br />

houses six business units and<br />

has 3 555 employees. The Port<br />

Equipment Maintenance unit<br />

and units specialising in wheels<br />

and locomotive overhaul are<br />

other entities. ■<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

32


OVERVIEW<br />

Oil and gas<br />

A new tanker will improve port services.<br />

African Marine Solutions has acquired a new tanker to<br />

deliver oil to ships in the Port of Durban. The vessel<br />

will deliver high and low sulphur oil and fuel oil in<br />

Africa’s busiest port as part of a contract which the<br />

company has signed with Shell Downstream South Africa.<br />

The Port of Richards Bay is also investing in new infrastructure. The<br />

supply of liquid petroleum gas (LPG) is set to be made much easier and<br />

more reliable with the erection of the <strong>22</strong> 600-ton Mounded LPG Facility<br />

at Richards Bay.<br />

Bidvest Tank Terminals has constructed the R1-billion storage facility<br />

for Petredec, which trades, transports and distributes LPG and other<br />

commodities. South Africa’s annual consumption of LPG, currently at<br />

400 000 tons, is expected to rise to 600 000 tons.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is home to two major oil refineries and is the first link<br />

in the pipeline chain that links Gauteng province, the industrial heartland<br />

of South Africa, with vital fuels. The Port of Durban handles 80% of South<br />

Africa’s fuel imports.<br />

If a private partner can be found, an LNG plant will produce 2 000MW at<br />

Richards Bay. This forms part of national government’s allocation of 3 126MW<br />

to natural gas in its medium-term energy policy to 2030. The National<br />

Department of Mineral Resources and Energy (DMRE) allocated one of the<br />

first two gas-to-power plants to be constructed under the Independent<br />

Power Producer Procurement Programme to Richards Bay. This has the<br />

potential to turn the Richards Bay Industrial Development Zone (RBIDZ)<br />

into an energy hub. The fact that neighbouring Mozambique has significant<br />

offshore deposits is a factor in this plan. To produce its allocation of 2 000MW,<br />

the plant would have to use a million tons a year of LNG.<br />

ONLINE RESOURCES<br />

National Energy Regulator of South Africa: www.nersa.org.za<br />

Petroleum Agency SA: www.petroleumagencysa.com<br />

South African National Energy Association: www.sanea.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

SECTOR INSIGHT<br />

Two oil refineries are located<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Credit: African Marine Solutions<br />

Eni, one of the world’s biggest<br />

energy companies, has an<br />

agreement with Sasol Petroleum<br />

International to explore for<br />

hydrocarbons off the coast of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

The regulator and promoter<br />

of oil and gas exploration in South<br />

Africa, Petroleum Agency South<br />

Africa, has awarded coalbedmethane-gas<br />

exploration rights<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> to NT Energy<br />

Africa, which has a partnership<br />

with the Central Energy Fund.<br />

These awards are for onshore<br />

exploration. The Petroleum<br />

Agency SA is an agency of the<br />

National Department of Energy.<br />

Getting fuel to the province<br />

of Gauteng is the key mission of<br />

the new multi-purpose pipeline<br />

(NMPP). Refined products such as<br />

jet fuel, sulphur diesel and both<br />

kinds of octane petrol are carried.<br />

The infrastructure of Transnet<br />

Pipelines is said to reduce the<br />

number of fuel tankers on South<br />

African roads by about 60%. ■<br />

33 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


FOCUS<br />

Gas discoveries are a boost<br />

to the Oceans Economy<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> stands to benefit from significant finds<br />

off the east coast of Africa<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s long coastline already<br />

reaps enormous benefits for the economy<br />

of the province through its sophisticated<br />

port infrastructure, trade<br />

opportunities and fishing opportunities but<br />

recent gas discoveries off the coasts of Mozambique<br />

and South Africa stand to make the<br />

benefits of the Oceans Economy very real for<br />

the coastal province’s residents.<br />

The Oceans Economy is part of the nationallydriven<br />

Operation Phakisa, a focused, goaloriented<br />

jump-starting of a specific economic<br />

sector. Operation Phakisa intends creating a<br />

million jobs by 2033 and injecting R177-billion<br />

into national GDP.<br />

Major steps have been taken in the creation<br />

of a South African gas market with two major<br />

discoveries off the South African coast near<br />

Mossel Bay. Says the CEO of Petroleum Agency<br />

SA, Dr Phindile Masangane, “The recent discovery<br />

by Total and its JV partners in Block 11B/12B<br />

(Brulpadda) is the first giant step in that direction.”<br />

Odfjell’s Deepsea Stavanger semisubmersible<br />

oil rig relocated from Norway to<br />

South Africa in June 2020 to start exploratory<br />

drilling at the Brulpadda site. Having found good<br />

quantities of light oil and gas condensate at<br />

Brulpadda, the team returned in October to drill<br />

at another site called Luiperd – and found even<br />

more gas reserves. Analysts believe that these<br />

two finds could be game-changers for the South<br />

African economy as gas currently occupies a tiny<br />

part of the country’s energy mix.<br />

Early reports suggest that Luiperd might<br />

have gas reserves twice as plentiful as the earlier<br />

discovery, although they are similar in terms of<br />

the liquids’ gas mix.<br />

The exploration drilling is in deep waters similar<br />

to where the gigantic Mozambique Rovuma Basin<br />

gas discoveries were made in 2010. The drilling<br />

campaign has long-term benefits to South Africa<br />

which include introducing frontier deep-water<br />

exploration drilling, building confidence and<br />

potentially shifting petroleum exploration activities<br />

to private international oil companies (IOCs), derisking<br />

deep-water acreage which is believed to be<br />

prospective for large oil and gas resources.<br />

There is potential for gas to be sent by<br />

undersea pipeline to Mossel Bay and to<br />

support the country’s switch from coal.<br />

“Further development of the discovery is<br />

highly dependent on the success of this further<br />

drilling,” comments Dr Masangane. “Possible<br />

development could see condensate being piped<br />

to the PetroSA facility in Mossel Bay,” she adds,<br />

“but these decisions are ultimately up to the<br />

operator, Total and its partners.”<br />

Africa Energy holds a 4.9% effective interest<br />

in the Exploration Right for Block 11B/12B.<br />

The Company owns 49% of the shares in Main<br />

Street 1549 Proprietary Limited, which has a<br />

10% participating interest in the block. Total<br />

as operator holds a 45% participating interest<br />

in Block 11B/12B, while Qatar Petroleum (25%)<br />

and CNR (20%) are the other participants.


FOCUS<br />

Petroleum Agency SA: promoting and<br />

regulating exploration and production.<br />

Petroleum Agency SA evaluates, promotes and<br />

regulates oil and gas exploration and production<br />

activities in South Africa and archives all relevant<br />

geotechnical data. The Agency acts as an advisor<br />

to the government and carries out special<br />

projects at the request of the Minister of Mineral<br />

Resources and Energy.<br />

South Africa’s energy mix is changing<br />

to include more gas through importing<br />

liquefied natural gas (LNG), using shale gas if<br />

reserves prove commercial, and developing<br />

infrastructure for the import of LNG. Petroleum<br />

Agency SA plays an important role in developing<br />

South Africa’s gas market by attracting qualified<br />

and competent companies to explore for gas.<br />

Another major focus is increasing the inclusion<br />

of historically disadvantaged South Africanowned<br />

entities in the upstream industry.<br />

Currently, natural gas supplies just 3% of South<br />

Africa’s primary energy. A significant challenge<br />

facing the development of a major gas market<br />

is the dominance of coal. Opportunities for gas<br />

lie in the realisation of South Africa’s National<br />

Development Plan (NDP) and the Integrated<br />

Resource Plan (IRP).<br />

As custodian, Petroleum Agency SA<br />

ensures that companies applying for gas rights<br />

are vetted to make sure they are financially<br />

qualified and technically capable, as well<br />

having a good environmental track record. Oil<br />

and gas exploration requires enormous capital<br />

outlay and can represent a risk to workers,<br />

communities and the environment. Applicants<br />

are therefore required to prove their capabilities<br />

and safety record and must carry insurance for<br />

environmental rehabilitation. ■<br />

Contact details<br />

Telephone: +27 21 938 3500<br />

Email: plu@petroleumagencysa.com<br />

Website: www.petroleumagency.com<br />

PASA’S NEW CEO HAS A BACKGROUND IN ENERGY POLICY AND STRATEGY<br />

Dr Phindile Masangane was appointed as the<br />

CEO of the South African upstream oil and gas<br />

regulatory authority, Petroleum Agency South<br />

Africa, in May 2020. Before then, Dr Masangane<br />

was an executive at the South African state-owned<br />

energy company, CEF (SOC) Ltd, which is the<br />

holding company of PASA.<br />

Dr Masangane was responsible for clean,<br />

renewable and alternative energy projects.<br />

In partnership with private companies, she<br />

led the development of energy projects<br />

including the deal structuring, project<br />

economic modelling and financing on<br />

behalf of the CEF Group of Companies. Her<br />

responsibilities also included supporting the<br />

national government in developing energy<br />

policy and regulations for diversifying the<br />

country’s energy mix.<br />

In 2019, Dr Masangane was Head of Strategy for<br />

the CEF Group of Companies where she led the<br />

development of the group’s long-term strategic<br />

plan, Vision 2040+ as well as the group’s gas strategy.<br />

From 2010 to 2013, Dr Masangane was a partner<br />

and director at KPMG, responsible for the Energy<br />

Advisory Division. She successfully led the capital<br />

raising of $2-billion for hydro and coal power<br />

plants expansion programmes of the<br />

Zimbabwean power utility, ZESA/ZPC.<br />

An alumnus of three<br />

universities, Dr Masangane has a<br />

BSc (mathematics and chemistry)<br />

from the University of Swaziland,<br />

a PhD in Chemistry from Imperial<br />

College, London and an MBA<br />

from the University of the<br />

Witwatersrand. ■


OVERVIEW<br />

Construction and property<br />

The north coast continues to attract high prices.<br />

SECTOR INSIGHT<br />

Durban has an inner-city<br />

revival plan.<br />

The Dolphin Coast continues to attract high-end investors.<br />

Seaton, The Bay, in Sheffield Beach Estate, north of Ballito<br />

and Simbithi Eco-Estate, distinguishes itself from its neighbours<br />

by offering direct access to the beach.<br />

Collins Residential reported R179-million in sales in two months<br />

in late 2020, for the first two parts of the development. Owners<br />

are expected to take up residence early in 20<strong>22</strong>. Further south,<br />

Zimbali is another estate holding its own in terms of value, as<br />

the Sunday Times reported in September 2020. Seeff Zimbali sold<br />

two properties for a combined R44.5-million and Pam Golding<br />

Properties were selling plots at Signature Sibaya for prices ranging<br />

from R5-million to R12-million.<br />

A programme that aims to make Durban’s inner city “Africa’s leading,<br />

most vibrant, liveable, walkable City Centre” could provide some impetus<br />

to the construction sector.<br />

The Inner City Local Area Plan (LAP) for Durban has been developed<br />

for the Strategic Planning unit of the eThekwini Municipality by a joint<br />

venture called IPPU.<br />

A major milestone was reached in November 2019 when the<br />

beachfront promenade extension reached the harbour. This means that<br />

residents anywhere in the city can now step onto the promenade, from<br />

the harbour in the south to Blue Lagoon in the north. The project began<br />

in early 2018 and cost R400-million.<br />

ONLINE RESOURCES<br />

Credit: Collins Residential<br />

Construction Industry Development Board: www.cidb.org.za<br />

Master Builders Association <strong>KwaZulu</strong>-<strong>Natal</strong>: www.mba-kzn.co.za<br />

SA Estate Agency Affairs Board: www.eaab.org.za<br />

SA Institute of Valuers: www.saiv.org.za<br />

According to the organisers of<br />

the 2019 KZN Construction Expo,<br />

infrastructure will attract more<br />

than R200-billion in investment<br />

over seven years and R35-billion<br />

will be spent over 15 years at the<br />

Port Waterfront development.<br />

The King Shaka International<br />

Airport and Dube TradePort are also<br />

attracting property investments.<br />

Two new industrial parks are being<br />

developed: Cornubia is part of<br />

a larger project near Umhlanga<br />

and Clairwood in Durban South<br />

will offer more than 300 000m² of<br />

A-grade industrial space.<br />

Tongaat Hulett Developments<br />

(THD) has for some years<br />

been rolling out a series of<br />

developments on land it owns<br />

north of Durban and it has<br />

launched the nTshongweni Urban<br />

Development on either side of the<br />

busy N3 highway west of the city.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a number<br />

of brick companies and four<br />

cement factories. Three of these<br />

are run by NPC at Simuma,<br />

Durban and Newcastle, and<br />

the company has a further six<br />

sites for concrete and two for<br />

aggregate. NPC is part of the<br />

Intercement group. Lafarge has<br />

several aggregate quarries and<br />

eight Readymix plants around the<br />

province. The company’s grinding<br />

operation in Richards Bay closed<br />

in 2017. ■<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

36


OVERVIEW<br />

Tourism<br />

Dedicated funds are promoting transformation.<br />

SECTOR INSIGHT<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> expected<br />

more than R1-billion from<br />

events in 2020.<br />

The Tourism Transformation Fund, created by the<br />

National Department of Tourism and the National<br />

Empowerment Fund (NEF), has disbursed several grants<br />

to <strong>KwaZulu</strong>-<strong>Natal</strong> operations.<br />

These include the Rhino Ridge Lodge in Hluhluwe and the Jozini<br />

Tiger Lodge, located on Lake Jozini with views of the Lebombo<br />

Mountains. The latter lodge is a community-owned initiative which<br />

employs 96 local people, mostly women.<br />

The provincial government has invested in maintenance and<br />

upgrades of facilities such as the caves at Ngodini and Ndumo and<br />

the Bhanga Nek Campsite. There are plans to upgrade the Mandela<br />

Capture Site near Howick.<br />

The combined contribution of retail and tourism to provincial<br />

GDP is 14%.<br />

The province anticipated income injection from business events<br />

to be hosted in 2020/<strong>2021</strong> to be about R1.2-billion. All of that fell<br />

away because of the global Covid-19 epidemic. The meetings,<br />

incentives, conferences and exhibitions (MICE) sector is likely to be<br />

the hardest hit by the lockdowns and it is difficult to anticipate when<br />

it will recover.<br />

ONLINE RESOURCES<br />

Credit: Kevin Folk on Unsplash<br />

Durban International Convention Centre: www.icc.co.za<br />

Ezemvelo KZN Wildlife: www.kznwildlife.com<br />

Moses Mabhida Stadium: www.mmstadium.com<br />

Tourism <strong>KwaZulu</strong>-<strong>Natal</strong>: www.zulu.org.za<br />

Similarly, the investment<br />

of R<strong>22</strong>0-million into the<br />

construction of a cruise terminal<br />

is unlikely to see a return for<br />

some time.<br />

Adventures don’t come<br />

more hair-raising than throwing<br />

yourself into the void above a<br />

sports stadium, but that’s what<br />

thousands of visitors to the<br />

Moses Mabhida Stadium have<br />

been doing for a decade.<br />

The SkyCar, a funicular trip<br />

over the top of the roof and<br />

bungy-jumping are popular,<br />

as is the “Adventure Walk” on<br />

the south side of the stadium.<br />

The 56 000-capacity stadium is<br />

home to a professional soccer<br />

team and forms part of a<br />

sporting precinct that includes<br />

the province’s professional<br />

rugby franchise, the Kings<br />

Park Stadium, and has greatly<br />

increased <strong>KwaZulu</strong>-<strong>Natal</strong>’s<br />

ability to host big events such<br />

as the Fact Durban Rocks and<br />

the Monster Jam.<br />

The upgrading of the<br />

Point area between the beach<br />

and the Port of Durban has<br />

resulted in major investments.<br />

The Docklands Hotel at the<br />

Durban Waterfront is a fourstar<br />

Signature development<br />

that cost about R100-million<br />

to develop. ■<br />

37 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


OVERVIEW<br />

Manufacturing<br />

Cellphones are now made in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

The Mara Group has invested more than R1-billion in a<br />

factory to manufacture cellphones at the Dube Trade-<br />

Port which is linked to the King Shaka International<br />

Airport. More than 300 permanent jobs will be created.<br />

Dube TradePort attracted R7-billion in private and public sector<br />

investment between 2012 and 2019 and, with its ideal position for<br />

logistics operations, is expected to attract much more.<br />

The province’s other Special Economic Zone (SEZ), the Richards<br />

Bay Industrial Development Zone (RBIDZ), has attracted a further<br />

R7-billion through four recent investments: Ubuhle Towels is a<br />

towel manufacturer; Elegant Afro Line makes chemicals and Wilmar<br />

SA is a manufacturer of edible oils. Nyanza Light Metal is investing<br />

R4.5-billion in the production of titanium dioxide pigments.<br />

A new plant to make washing machines has created 75<br />

jobs at the Durban plant of white-goods manufacturer Defy.<br />

The R121-million investment is part of a R1.2-billion investment<br />

programme which Arçelik Global, the Turkish company, has been<br />

following since it acquired Defy. The company has another plant<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> at Ezakheni (near Ladysmith) and at East London<br />

in the Eastern Cape.<br />

Cipla, the Indian manufacturer of generic drugs, is building a<br />

new facility at Dube TradePort to complement its existing factory in<br />

Durban. LG Electronics South Africa has opened a R21-million factory<br />

and distribution centre in Cornubia, north of Durban.<br />

Expansion of production normally heralds an uptick in the<br />

economy. Unfortunately, the fact that more aluminium products are<br />

going to be made by Hulamin’s extrusion facility in Pietermaritzburg<br />

reflects the fact that the company has closed one of its factories in<br />

another province. The company believes that its restructuring is<br />

working well, and its beverage business is thriving. Hulamin also makes<br />

rolled products at Edendale, Pietermaritzburg and Camps Drift.<br />

The manufacturing sector contributes 17.7% to the provincial<br />

Gross Domestic Product (GDP) of <strong>KwaZulu</strong>-<strong>Natal</strong>. The strongest<br />

export sectors are base-metals (32% including aluminium), mineral<br />

products such as ores, vehicles and chemical products.<br />

ONLINE RESOURCES<br />

Aluminium Federation of South Africa: www.afsa.org.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

Enterprise iLembe: www.enterpriseilembe.org.za<br />

Plastics SA: www.plasticsinfo.co.za<br />

SECTOR INSIGHT<br />

Richards Bay Industrial<br />

Development Zone is set<br />

to receive R7-billion in<br />

investments.<br />

Credit: Hulamin Rolled Products<br />

New opportunities in the<br />

Blue Economy (ship-building<br />

and maintenance, oil-rig<br />

repair and servicing) and the<br />

Green Economy (solar panel<br />

manufacture, solar, biogas and<br />

wind energy plant construction,<br />

management and maintenance,<br />

heating and cooling devices) are<br />

set to grow in <strong>KwaZulu</strong>-<strong>Natal</strong> with<br />

the allocation of geographical<br />

hubs to support these sectors,<br />

and the introduction of policies<br />

to make them competitive.<br />

Two large oil refineries<br />

and a sophisticated sugar<br />

milling and refining industry<br />

underpin provincial chemical<br />

manufacturing. The chemicals<br />

and petrochemicals subsector<br />

makes up 17% of the<br />

manufacturing output of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, with industrial<br />

chemicals accounting for nearly<br />

a third. Steel and aluminium<br />

are other heavy manufacturing<br />

products. Newcastle is a<br />

chemical manufacturing hub. ■<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

38


Automotive<br />

Stanger will host a new battery factory.<br />

OVERVIEW<br />

SECTOR INSIGHT<br />

Toyota is to start<br />

producing a sports-utility<br />

vehicle in <strong>2021</strong>.<br />

Credit: Toyota<br />

More than 3 000 jobs will be created by battery manufacturer<br />

Metair as it responds to the winning of a big contract<br />

from Ford Motor Company South Africa. Stanger in<br />

northern <strong>KwaZulu</strong>-<strong>Natal</strong> will be the site of a new factory<br />

and a further investment in logistics will take place in Gauteng.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a substantial automotive components sector<br />

which includes large manufacturers such as GUD Filters. Thirtynine<br />

companies are currently members of the Durban Automotive<br />

Cluster which is funded by the municipality. Together, these firms<br />

have about 17 000 employees.<br />

In line with the policy of developing Industrial Economic<br />

Hubs, the Durban Automotive Supplier Park is being built at<br />

Illovo, south of Durban and near to the Toyota manufacturing<br />

plant. The Dube TradePort Corporation will manage the project,<br />

which covers 1 013ha. Other partners are the eThekwini<br />

Municipality, Toyota and the provincial government.<br />

Toyota’s plant, just a few kilometres south of the harbour at<br />

Prospecton, has received a R2.4-billion investment to produce a new<br />

passenger vehicle. The Corolla Cross (pictured) will start production<br />

in the final quarter of <strong>2021</strong>. A sports-utility vehicle, the Cross will also<br />

be available as a hybrid.<br />

Toyota sells about a quarter of the vehicles sold in South<br />

Africa, and accounts for the same proportion of export volumes.<br />

The company’s total investment of R4.2-billion between 2019 and<br />

<strong>2021</strong> includes other manufacturing projects and a huge increase in<br />

warehousing capabilities.<br />

The other large-scale original equipment manufacturer in<br />

the province is Bell Equipment. Between the Toyota plant and the<br />

ONLINE RESOURCES<br />

Automotive Industry Development Centre: www.aidc.co.za<br />

Durban Automotive Cluster: www.dbnautocluster.org.za<br />

National Association of Automotive Component and Allied Manufacturers<br />

(NAACAM): www.naacam.co.za<br />

Richards Bay facility of heavyequipment<br />

manufacturer Bell<br />

Equipment, upwards of 11 000<br />

people are employed.<br />

Another manufacturer of<br />

earthmoving equipment can<br />

be found at Port Shepstone<br />

on the south coast. Dezzi is<br />

part of the Desmond Group of<br />

companies that was founded<br />

in 1973 and now has 18 offices<br />

and branches. The Dezzi CMI<br />

backhoe loader is a popular part<br />

of the company’s range.<br />

In 2018 AIH Logistics<br />

started assembling Mahindra<br />

and Bolero bakkies from kits<br />

imported from India on a<br />

site at the Dube TradePort.<br />

The 5 000m² plant is owned<br />

by Automotive Investment<br />

Holdings (AIH), which formed<br />

AIH Logistics specifically to deal<br />

with the Mahindra contract.<br />

The intention is to make 2 500<br />

bakkies per year, with an option<br />

to expand production to 4 000<br />

and to increase sales of bakkies<br />

in the South African market.<br />

The Mathe Group’s tyre<br />

recycling plant at Hammarsdale<br />

has quickly increased capacity<br />

to 150 000 used truck tyres<br />

per year and intends going<br />

past 200 000 soon. Other<br />

applications include modified<br />

bitumen and as a component<br />

of artificial grass. ■<br />

39 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


OVERVIEW<br />

Education and training<br />

An ambitious scheme aims to prepare young people for the world of work.<br />

SECTOR INSIGHT<br />

A skills audit of municipal<br />

officials is underway.<br />

Universities<br />

The AFDA campus in Durban caters for film, television and arts<br />

students. Credit: AFDA<br />

The Sukuma 100 000 programme was launched in 2020<br />

by the Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> with the<br />

goal of helping young people make the transition from an<br />

educational environment into the world of work.<br />

With the assistance of the private sector, the Youth Directorate<br />

in the Office of the Premier wants 100 000 young people to benefit<br />

every year from in-service training, apprenticeships and internships.<br />

State-owned entities and government departments will also<br />

participate in the programme, which is scheduled to last five years.<br />

In another initiative related to competencies, a skills audit is<br />

to be conducted among senior officials across the province. The<br />

audit began in municipalities and will be extended to provincial<br />

departments and agencies of the province in due course.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has nine Technical and Vocational Education and<br />

Training (TVET) Colleges with a total enrolment of about 80 000.<br />

Coastal KZN TVET College gives students practical experience<br />

through facilities such as the Nongalo Industrial Park. The college<br />

hosts the Samsung Engineering Academy, a Tooling Centre of<br />

Excellence and a manufacturing plant for sanitary towels. The college<br />

has several sites on the South Coast and caters for 15 400 students.<br />

Majuba TVET College is a Centre of Specialisation for boilermaking.<br />

The Mnambithi TVET College is located in the Battlefields<br />

Route tourism area and offers National Diploma courses in tourism,<br />

among other qualifications. A satellite campus operates at Estcourt.<br />

There are two universities and<br />

two universities of technology in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, and the national<br />

distance university, the University<br />

of South Africa (Unisa), has a<br />

presence in five locations. USB<br />

Executive Development offers<br />

business courses for executives.<br />

UKZN has close to 40 000<br />

students studying on five<br />

campuses in two cities. Greater<br />

Durban hosts Howard College,<br />

Berea (environment, engineering,<br />

law, humanities) and the Nelson<br />

Mandela School of Medicine at<br />

Congella. The UKZN administration<br />

and the Graduate School of<br />

<strong>Business</strong> are based at Westville (also<br />

science, engineering: and health)<br />

whereas the Edgewood, Pinetown,<br />

campus focusses on and education.<br />

The Pietermaritzburg<br />

campus offers a broad academic<br />

programme but its specialities are<br />

fine art, theology and agriculture.<br />

UKZN also hosts the National<br />

Research Foundation.<br />

The Durban University of<br />

Technology (DUT) has six faculties<br />

operating in seven campuses in<br />

Durban and in the Midlands. DUT<br />

is well known for its outstanding<br />

graphic-design school and offers<br />

one of only two chiropractic<br />

programmes in South Africa.<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

40


OVERVIEW<br />

The University of Zululand offers diploma and degree courses on<br />

two campuses at Empangeni and Richards Bay.<br />

Several provincial government departments make tertiary<br />

bursaries available to qualifying students, including Agriculture and<br />

Rural Development, Human Settlements, Public Works, Transport<br />

and the Treasury. The National Student Financial Aid Scheme (NSFAS)<br />

supports 26 public universities across the country in advancing<br />

payment of registration fees for poor students.<br />

The private sector also actively supports education through<br />

bursaries. A crowdfunding platform set up by Standard Bank, the<br />

Feenix Trust, raised more than R35-million in three years to support<br />

more than 1 000 students. The bank’s Ikusasa Student Financial Aid<br />

Programme (ISFAP) provides bursaries for students from families<br />

earning less than R600 000 per annum.<br />

Schools<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has 2.8-million school pupils, many of whom are<br />

in rural areas. With 30% of South Africa’s pupils in its schools, the<br />

province’s results have a big bearing on how the nation fares in<br />

annual examinations.<br />

There is now near universal access to primary and secondary<br />

schooling and a new drive to enrol pre-school children in Grade R has<br />

achieved a 70% success rate. The province has 1 689 early childhood<br />

development centres.<br />

Transport is provided to 350 schools, covering 59 000<br />

pupils and 2 400 bicycles have been made available under the<br />

Shovakalula programme.<br />

The Anton Lembede Mathematics, Sciences and<br />

Technology Academy in La Mercy north of Durban welcomed<br />

its first Grade 8 pupils in <strong>2021</strong>. Enrolment is expected to<br />

reach 600 for the school, which caters to grades 8 to 12. The<br />

long-planned project cost R255-million and is part of a wider<br />

provincial programme that includes a Special School for<br />

Autism and two Schools of Excellence scheduled to be started<br />

ONLINE RESOURCES<br />

Council of Higher Education: www.che.ac.za<br />

Independent Schools Association of Southern Africa: www.isasa.org<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Education: www.kzneducation.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

National Skills Authority: www.nationalskillsauthority.org.za<br />

in <strong>2021</strong>, for Agriculture<br />

in Umgungundlovu and<br />

Maritime studies in Umlazi.<br />

A primary school in the<br />

Harry Gwala District was<br />

the site of the launch of an<br />

e-learning infrastructure<br />

programme that is intended<br />

to be rolled out to rural areas<br />

throughout the province.<br />

Digital access will allow<br />

pupils in remote areas to<br />

be connected to the best<br />

teachers in the province.<br />

The unbundling from the<br />

successful Curro group of a<br />

separate tertiary entity which<br />

listed on the JSE as Stadio<br />

Holdings is a good indicator<br />

of the growth of the private<br />

sector in education. Stadio<br />

currently has three institutions:<br />

Southern <strong>Business</strong> School,<br />

AFDA (the School for the<br />

Creative Economy) and the<br />

Embury Institute for Higher<br />

Education which has a campus<br />

in Musgrave, Durban. There are<br />

seven schools in <strong>KwaZulu</strong>-<strong>Natal</strong><br />

operating under Curro brands.<br />

Advtech, the other big<br />

private company in the<br />

sector, already has 27 tertiary<br />

campuses nationally, in<br />

addition to its 78 schools<br />

operating under a variety<br />

of labels. Advtech operates<br />

10 educational sites in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, including<br />

schools such as Crawford and<br />

Trinity House, a chefs school<br />

(Capsicum), three Varsity<br />

Colleges and the Design<br />

School for Southern Africa. ■<br />

41 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


REALISING DREAMS<br />

THROUGH QUALITY EDUCATION<br />

Standard Bank’s commitment to education in South Africa<br />

The power of education to drive change in<br />

South Africa remains undeniable. Unfortunately,<br />

many in our country, because of their<br />

personal circumstances still struggle to access<br />

a quality education. Standard Bank takes an active role<br />

in helping these young people realise their dreams<br />

through financial support and training initiatives. We believe<br />

that all South Africans deserve a quality education.<br />

Standard Bank invests in improved educational<br />

outcomes and skills development in multiple<br />

ways. We prioritise education in our corporate<br />

social investment (CSI) programmes and invest in<br />

work readiness programmes through our internal<br />

learnership and graduate programmes.<br />

We work with partners in government and the<br />

corporate sector to address the challenge of<br />

affordable and accessible student finance.<br />

ECD and Foundation Phase<br />

In 2019 we developed a refreshed CSI strategy, which<br />

focuses specifically on Early Childhood Development<br />

(ECD) and Foundation Phase education.<br />

Extensive research demonstrates that developmental<br />

stimulation during the early years of childhood are critical<br />

to future intellectual, emotional and physical wellbeing.<br />

In 2020, in the wake of the Covid-19 pandemic,<br />

we supported our existing ECD partners and we<br />

worked closely with NGO partners identified by the<br />

Department of Basic Education.<br />

Feenix crowdfunding<br />

Standard Bank South Africa launched Feenix Trust<br />

in 2017 to make tertiary education more accessible<br />

for economically disadvantaged students. In its first<br />

three years, Feenix raised over R35-million, providing<br />

support for over 1 000 students.<br />

The platform enables university students to<br />

create profiles and request donations toward<br />

their education journey and enables individuals<br />

and businesses to take meaningful action to<br />

solve social problems. To qualify, students<br />

need to be registered at a South African public<br />

university and have an annual household income<br />

of below R600 000. Academic achievement is not<br />

a criterion.<br />

Bursary Programmes<br />

In South Africa, the Ikusasa Student Financial Aid<br />

Programme (ISFAP) is part of the effort to solve<br />

the funding challenge faced by “missing middle”<br />

students. The programme funds the tertiary<br />

studies of students from households that earn up<br />

to R600 000 per year.<br />

ISFAP focuses on students studying toward<br />

jobs in high-demand sectors, scarce skills, and<br />

professional degrees. It covers the full cost of<br />

study, together with “wrap-around support”,<br />

which includes additional academic, social and<br />

psychological support such as mentoring and<br />

life-skills training. ■<br />

Image by Ben White on Unsplash


CONGRATS TO THE<br />

CLASS OF 2020<br />

The work is done and the results<br />

are in – now it’s time to build<br />

the future you want.<br />

After waiting so long to find out how you did<br />

in the exams, it’s nice to know that it only takes a<br />

few minutes to secure your future with a Student Loan.<br />

Drop the stress and start the dream. Apply online today at<br />

standardbank.co.za to find out if you qualify, and access<br />

affordable repayments and low interest rates*.<br />

#LetsPush<br />

*Ts&Cs apply.<br />

Standard Bank is an authorised financial services and registered credit provider (NCRCP15).<br />

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). GMS-17909 02/21


OVERVIEW<br />

Water<br />

Waste-water works are being upgraded.<br />

A<br />

new tender was issued in 2020 for the completion<br />

of a 35-megalitre-per-day upgrade of the Darvill<br />

Waste-Water Works. The facility receives and treats<br />

both domestic and industrial waste-water from the<br />

city of Pietermaritzburg.<br />

A provincial Water Intervention Plan is being rolled out in<br />

hotspots where municipalities are struggling to provide consistent<br />

services. The water-stressed districts to benefit from this project<br />

are Ugu, uThukela, uMzinyathi, Amajuba, Zululand, uMkhanyakude<br />

and Harry Gwala. The main pipelines of Kokstad and Underberg are<br />

receiving upgrades, as are the water supply systems at Bergville,<br />

Skhemelele and Moyeni Zwelisha.<br />

The area north of the Durban central business district is one of the<br />

fastest-growing urban areas in South Africa, with a number of large<br />

office and accommodation projects going ahead simultaneously.<br />

This is a welcome development for the economy, but the new<br />

buildings also create pressure on infrastructure.<br />

The multi-year, R250-million Northern Aqueduct Augmentation<br />

project was initiated in 2014 and the fifth phase of the project is<br />

underway. This will provide water for Durban North, Umhlanga,<br />

Newlands, KwaMashu, Phoenix and Cornubia.<br />

Two new dams will add 800-million litres of water per day to the<br />

available supply in <strong>KwaZulu</strong>-<strong>Natal</strong>. As part of the lower uMkhomazi<br />

bulk water scheme, utility Umgeni Water will spend about R26-billion<br />

on the Smithfield Dam and R2.4-billion on the Ngwadini Dam.<br />

Umgeni Water currently supplies more than 472-million cubic<br />

metres of potable water to its six large municipal customers:<br />

eThekwini Metropolitan Municipality, iLembe District Municipality,<br />

Sisonke District Municipality, Umgungundlovu District Municipality,<br />

Ugu District Municipality and Msunduzi Local Municipality. The<br />

company has five dams, 10 waterworks, five water-treatment plants<br />

and two waste-water works, including Darvill.<br />

Large parts of the northern part of the province are served by<br />

Mhlathuze Water. The utility has assets valued at more than R3-billion<br />

and its area of supply covers 37 000m².<br />

ONLINE RESOURCES<br />

Mhlathuze Water: www.mhlathuze.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Umgeni Water: www.umgeni.co.za<br />

Water Research Commission: www.wrc.org.za<br />

SECTOR INSIGHT<br />

Water hotspots are<br />

getting urgent relief.<br />

New technology has<br />

been installed at the Verulam<br />

Wastewater Treatment Works<br />

of the eThekwini Municipality.<br />

Murray & Roberts Water and its<br />

European technology partner,<br />

Organica Water, has installed an<br />

environmentally-friendly system.<br />

Richards Bay has installed a<br />

10-container desalination plant<br />

next to the municipal water<br />

treatment plant at Alkanstrand.<br />

The first mobile sea water<br />

purification unit in South Africa,<br />

it comprises 10 containers<br />

and is located adjacent to<br />

the water treatment plant at<br />

Alkantstrand. It can deliver 10<br />

megalitres of drinking water.<br />

However, the high cost of<br />

electricity means that the unit<br />

is used sparingly. Solar energy<br />

is being investigated as a<br />

possible alternative.<br />

In 2018 JG Afrika delivered<br />

a R72-million desalination plant<br />

to South32’s Hillside aluminium<br />

smelter in the same town. ■<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

44


Energy<br />

Toyota dealers are using less energy.<br />

OVERVIEW<br />

SECTOR INSIGHT<br />

Sugar producers want to sell<br />

electricity.<br />

Credit: Toyota SA<br />

In terms of Toyota’s Dealer Environmental Risk Audit Programme<br />

(DERAP), dealers do audits twice a year to check<br />

their compliance with various environmental and energy<br />

standards. One checkpoint relates to generating less energy.<br />

The national winner of the DERAP award installed 288 solar<br />

panels on the roof, uses LED lights in the workshop and natural<br />

light is utilised via louvres.<br />

The managing director of Illovo Sugar SA, Mamongae Mahlare,<br />

has told the Sunday Times that the sugar industry is in real need of<br />

some other source of income to offset tough times. Selling energy<br />

to the grid (and investigating biofuel and bio-energy) are “key”<br />

to the sector’s future, she told the newspaper. At the company’s<br />

Eswatini mill, Ubombo, it has a commercial supply agreement<br />

with the Eswatini Electricity Company.<br />

The province’s other sugar giant, Tongaat Hulett, produces<br />

between 12MW and 14MW of power at its mills and believes that the<br />

national sugar industry could generate between 700MW and 900MW.<br />

A 17MW biomass project represents the province’s only<br />

approved project in terms of the national Renewable Energy<br />

Independent Power Producer Procurement Programme (REIPPPP).<br />

An open cycle gas turbine plant at Shakaskraal in the iLembe<br />

District Municipality can be converted to gas-fired technology, a<br />

method which energy planners are encouraging. The 670MW plant<br />

came on stream in 2017. Its project company, Avon Peaking Power,<br />

is jointly owned by a community trust, Mitsui (Japan), Legend<br />

ONLINE RESOURCES<br />

National Department of Energy: www.energy.gov.za<br />

National Energy Regulator: www.nersa.org.za<br />

South African National Energy Development Institute:<br />

www.sanedi.org.za<br />

Power Solutions (South Africa)<br />

and ENGIE of France.<br />

As part of the provincial<br />

government’s strategy to<br />

boost regional development,<br />

the iLembe District has<br />

been named as an Industrial<br />

Economic Hub (IEH) for the<br />

renewable energy sector.<br />

Khanyisa Projects has set<br />

up 26 biodigesters which<br />

produce gas for cooking at<br />

Ndwedwe in the iLembe<br />

District. The project forms<br />

part of the Working for<br />

Energy programme of the<br />

South African National<br />

Energy Development Institute<br />

(SANEDI) which promotes<br />

the use of sustainable clean<br />

energy in rural areas.<br />

The Richards Bay Industrial<br />

Development Zone (RBIDZ)<br />

has been named as the site<br />

for 2 000MW liquefied natural<br />

gas (LNG) plant in terms of<br />

national government’s gas-topower<br />

plan. RBIDZ is also the<br />

site of a new biomass plant.<br />

Biomass technology is at<br />

the centre of the conversion<br />

scheme of South African<br />

Breweries at its Prospecton<br />

plant south of Durban.<br />

Methane-gas emissions from<br />

a nearby effluent plant are<br />

piped to the plant where they<br />

are converted to electricity. ■<br />

45 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


OVERVIEW<br />

Banking and financial services<br />

Choices for South African financial consumers are expanding.<br />

Aspen has taken a secondary listing on the A2X. Credit: Hodari Properties<br />

Aspen Pharmacare is a speciality pharmaceuticals<br />

company with a presence in more than 50 countries<br />

and nearly 9 000 employees. The company’s<br />

headquarters are in La Lucia Ridge north of Durban.<br />

Aspen’s production facilities are elsewhere, but the global<br />

headquarters offer a grand view of the Indian Ocean (and the roof of<br />

the headquarters of another giant South African company, Unilever<br />

South Africa) in an area popular with tax consultants and stock brokers.<br />

Aspen’s revenue in 2020 increased to R38.6-billion.<br />

Aspen’s decision to register a second listing on one of South<br />

Africa’s newest stock exchanges (the primary listing remains on the<br />

JSE) was a boost for A2X, which set out to attract secondary listings.<br />

Patrice Motsepe’s African Rainbow Capital is an investor in A2X.<br />

The announcement in December 2020 that Prosus was going<br />

to take a secondary listing on A2X raised the bourse’s total market<br />

capitalisation to nearly R5-trillion across 40 companies. Prosus, a<br />

consumer Internet group and technology investor, has a market cap<br />

of R2.7-trillion.<br />

Of the four new exchanges, Equity Express Securities Exchange<br />

(EESE) trades in Black Economic Empowerment (BEE) while ZARX<br />

and 4AX are targeting companies that are not listed elsewhere.<br />

ZARX has agricultural holding companies like TWK and Senwes<br />

among its first clients.<br />

SECTOR INSIGHT<br />

MyMo is Standard Bank’s<br />

newest low-cost bank account.<br />

Together with real estate<br />

and general business, the<br />

financial sector in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> accounts for 18% of gross<br />

domestic product (GDP).<br />

Big strides have been made<br />

in providing banking services<br />

to the previously unbanked but<br />

there is still a long way to go. The<br />

widespread use of smartphones<br />

is creating new opportunities for<br />

banks and other financial service<br />

providers to further close the gap.<br />

Standard Bank introduced<br />

the low-cost MyMo account<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> in 2020. With<br />

free electronic transactions,<br />

unlimited card swipes and a low<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

46


OVERVIEW<br />

monthly fee, the MyMo account is ideal for low-income earners, microentrepreneurs<br />

and the poor. Customers do not have to visit branches<br />

to sign up for the account. They can take a selfie on the mobile app.<br />

Says Imraan Noorbhai, Provincial Head of Standard Bank KZN,<br />

“Given South Africa’s history and current economy, financial inclusion<br />

is extremely important for us, and with the MyMo account, we want<br />

our customers to thrive financially.”<br />

Shariah-compliant banking is provided by alBaraka Bank which has<br />

its headquarters at Kingsmead in Durban, which is also the site of its<br />

corporate-banking division. In 2020 the bank announced plans for a<br />

comprehensive Shariah-compliant banking app, enabling clients to<br />

do transactions via mobile devices. Other technological updates are<br />

being explored to allow customers to open bank accounts from the<br />

comfort of their own homes.<br />

HBZ Bank, a wholly-owned subsidiary of Habib Bank and AG<br />

Zurich, has branches in Westville, Durban and Pietermaritzburg.<br />

In 2017 Tyme Digital received a licence to run a bank. By early<br />

2019, TymeBank was available in 500 Pick n Pay and Boxer stores and<br />

more than 50 000 customers had an account. Tyme stands for Take<br />

Your Money Everywhere; the bank does not have a branch network.<br />

African Rainbow Capital began as the venture’s BEE partner but in<br />

2018 bought out the Commonwealth Bank of Australia.<br />

Tyme reported in October 2020 that it had 2.4-million customers,<br />

up from 1.4-million at the end of March. A 400% increase in the use of<br />

services such as airtime and electricity purchases was also noted.<br />

Second to market among the country’s new banks was Discovery<br />

Bank, which officially launched in 2019 and is experiencing rapid<br />

growth with retail deposits at the end of 2020 of R5.7-billion. Discovery<br />

Bank is applying the behavioural model it uses in its health business<br />

to reward good financial behaviour. The Discovery group is already<br />

a giant on the JSE with a market value of R83-billion and access to<br />

millions of customers.<br />

Development loans<br />

The Brics New Development Bank has made a $200-million loan for<br />

the expansion of the container terminal in Durban. The busy port is<br />

currently stretched beyond capacity and waiting time for trucks can<br />

be extremely long.<br />

Activist groups in Durban’s<br />

southern suburbs are opposing<br />

the loan and the expansion,<br />

saying that further development<br />

will increase pollution in the<br />

area and lead to even more<br />

dangerous traffic congestion.<br />

Up the coast at Richards Bay,<br />

the World Bank’s International<br />

Finance Corporation (IFC)<br />

has committed $2-million<br />

to a feasibility study on the<br />

construction of a liquefied<br />

natural gas (LNG) storage and<br />

regasification terminal. The<br />

study’s costs are shared with<br />

Transnet and a private investor<br />

will be sought if the feasibility<br />

study is positive.<br />

The Chartered Institute of<br />

Government Finance, Audit and<br />

Risk Officers (Cigfaro) advises<br />

institutions, trains its members in<br />

public finance and promotes the<br />

interests of professionals in the<br />

public sector. It also develops<br />

and assesses qualifications and<br />

advises tertiary institutions on<br />

the requirements for courses.<br />

The South African Institute<br />

for Chartered Accountants<br />

International provides training<br />

in financial reporting standards<br />

for SMMEs while the Insurance<br />

Institute of <strong>KwaZulu</strong>-<strong>Natal</strong><br />

(IISA) holds regular education<br />

workshops. The institute’s<br />

mentorship programme is run in<br />

association with the Musifunde<br />

Training Centre. ■<br />

ONLINE RESOURCES<br />

Association for Savings and Investment South Africa: www.asisa.org.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

Insurance Institute of South Africa (<strong>KwaZulu</strong>-<strong>Natal</strong>): www.iikzn.co.za<br />

South African Institute for Chartered Accountants: www.saica.co.za<br />

47 KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong>


OVERVIEW<br />

Development finance and<br />

SMME support<br />

Exxaro and Bell are teaming up to help SMMEs.<br />

SECTOR INSIGHT<br />

Provincial government funds are<br />

available for entrepreneurs.<br />

Agreeing to work together: Mzila Mthenjane (Executive Head: Stakeholder Affairs,<br />

Exxaro) and Duncan Mashika (MD, Bell Equipment Sales South Africa).<br />

Resources company Exxaro has signed an agreement with<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> company Bell Equipment which gives access<br />

to contractors to mining equipment at affordable prices, as<br />

part of Exxaro’s enterprise and supplier development (ESD).<br />

Advice and support to the new owners of equipment will also be<br />

available in terms of the partnership.<br />

The Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> made available<br />

through the Operation Vula Fund the sum of R150-million in the<br />

2020/21 financial year in support of enterprise development.<br />

Similarly, the KZN Youth Empowerment Fund has provided R71-million<br />

to 55 youth-owned enterprises, including Uthandimvelo Trading, a supplier<br />

to the Tongaat Hullet Mill. A R1.45-million grant assisted in the creation of 10<br />

permanent jobs and 25 temporary jobs.<br />

Funding from the National Department of Trade, Industry and<br />

Competition’s (dtic) Black Industrialist Programme and from the<br />

Industrial Development Corporation (IDC) secured 70% of Newcastlebased<br />

Boschpick Engineering for entrepreneurs Bongani Khumalo and<br />

Phillip Majali and their company<br />

Lipsobex. The IDC provides finance<br />

across a range of sectors from<br />

agriculture to tourism.<br />

The Small Enterprise<br />

Development Agency (Seda) is<br />

active in supporting entrepreneurs.<br />

Seda gives non-financial support<br />

through training, assistance with<br />

filling in forms, marketing and<br />

creating business plans.<br />

In <strong>KwaZulu</strong>-<strong>Natal</strong>, Seda runs<br />

12 Incubators which either help<br />

new businesses get started or<br />

with the rehabilitation of existing<br />

enterprises. Three models are<br />

used: Technology Demonstration<br />

Centres (demonstration and<br />

training); Technology Incubators<br />

(where the focus is rehabilitation);<br />

Hybrid Centres, which combine<br />

elements of the other two models.<br />

The <strong>KwaZulu</strong>-<strong>Natal</strong> incubators<br />

include ICT and construction<br />

(three centres each), furniture and<br />

hi-tech (two each) and chemicals,<br />

and essential oils. ■<br />

ONLINE RESOURCES<br />

National Department of Small <strong>Business</strong> Development: www.dsbd.gov.za<br />

SA SME Fund: www.sasmefund.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

KWAZULU-NATAL BUSINESS <strong>2021</strong>/<strong>22</strong><br />

48


INDEX<br />

INDEX<br />

Citiq Prepaid ............................................................................................................................................................. OBC<br />

Durban Chamber of Commerce and Industry ........................................................................................... 2<br />

EBH SA ................................................................................................................................................................................. 7<br />

Enterprise iLembe.......................................................................................................................................................<strong>22</strong><br />

Petroleum Agency South Africa ........................................................................................................................34<br />

Invest Durban.........................................................................................................................................................IFC, 1<br />

Standard Bank...........................................................................................................................................5, 16, 28, 42

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