KwaZulu-Natal Business 2021-22 by Global Africa Network Media

2021/22 EDITION

KWAZULU-NATAL BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN THE KWAZULU-NATALPROVINCE

SPECIAL FEATUR

OVERVIEW

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

n a year in which South Africa’s total vehicle exports topped 350 000, it was perhaps not surprising that Durban’s Car Terminal boasted a record of putting more than 500 000 fully-built-up units (FBUs) through the port in 2018/19. The figure includes FBUs that are not motor vehicles and includes vehicle imports. Toyota’s popular Fortuner is exported at a rate of about 150 per month. The company’s plant, just a few kilometres south of the harbour at Prospecton, is to receive a R2.4 billion investment injection in order to produce a new passenger vehicle from the end of 2020. The Toyota Hybrid Synergy Drive vehicle will be produced as a variant. Toyota sells about a quarter of the vehicles sold in South Africa, and accounts for the same proportion of export volumes. The company’s total investment of R4.2billion between 2019 and 2021 includes other manufacturing projects and a huge increase in warehousing capabilities. The other large-scale original equipment manufacturer in the province is Bell Equipment. Between the Toyota plant and the Richards Bay facility of heavy-equipment manufacturer Bell Equipment, upwards of 11 000 people are employed. In 2019 Bell won the “Major Contributor to Innovation and Technological Advancement in KZN” award and the “Exporter of the Year” award. Exports to more than 80 countries make up about 40% of the company’s turnover and local content of those exports is at 70%. Bell is best known for its heavy equipment which is primarily used in the mining and construction sectors. Another manufacturer of earthmoving equipment is Dezzi, with 18 offices and branches. In 2018 AIH Logistics started assembling Mahindra and Bolero bakkies from kits imported from India on a 5 000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant at Hammars-dale has increased capacity to 150 000 used truck tyres per year and should exceed 200 000 soon, while Powerstar assembles

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WWW.GLOBALAFRICANETWORK.COM | WWW.KWAZULUNATALBUSINESS.CO.ZA Bell Equipment is scooping awards.

trucks in Pietermaritzburg on a site formerly used by Super Group. KwaZulu-Natal’s substantial automotive components sector includes large manufacturers such as GUD Filters, while 39 companies (with 17 000 employees) are members of the Durban Automotive Cluster. Trade and I nvestment KwaZulu-Natal estimates that the province’s component automotive manufacturers enjoy a combined turnover approaching R10-billion. The Behr Group has an air-conditioning and cooling systems factory in Durban.

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Online Resources

dissolving pulp. Sugar, tourism and forestry an paper are other important sectors driving growt and employment in KwaZulu-Natal. In his 2020 State of the Province addres Premier Sihle Zikalala listed the sectors which are be targeted for investment in the future. These are • Aloe processing • Bio-ethanol • Renewable energy • Fish processing • Innovation hubs • Oceans Economy. KwaZulu-Natal has a long coastline that stretche from Port Edward in the south to the iSimangalis Wetland Park in the north. The province’s conta with the sea has brought obvious benefits: fishin fine beaches enjoyed by millions of tourists an two great ports. These ports export vast quantities of minera (mostly through Richards Bay) and manufacture goods (Durban) and serve as an important condu

role in the automotive sector while the Engen Oil Refinery is a strategic asset. The province’s existing infrastructure, good soils and fine weather provide a solid base for future growth. KwaZulu-Natal already has significant capacity in heavy and light manufacturing, agriprocessing and mineral beneficiation, all of which is supported by South Africa’s two busiest ports (Richards Bay and Durban), the country’s busiest highway (the N3), a modern international airport and pipelines that carry liquids of all types to and from the economic powerhouse of the country around Johannesburg in the interior. Sappi’s dissolving pulp mill at Umkomaas south of Durban (below) is one of the province’s most significant industrial sites as it produces huge quantities of a material that is used in viscose staple fibre, which in turn is used in clothing and textiles. Together with production volumes from Sappi’s mill in neighbouring Mpumalanga province, the company is the world’s largest manufacturer of

DURBAN CHAMBER OF COMMERCE AND INDUSTRY NPC

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Policy and advocacy are at the heart of our work and we assist m

HR consultancy and more) across a broad spectrum of sectors, e thought leadership through forum webinars and other networki

The Durban Chamber advocates and inﬂuences policy decisions

BUY LOCAL INVEST LOCAL Let’s come together and heal as a nation. Let’s focus on Renewing, Restoring and Rebuilding successful partnerships and investment opportunities so we can get back to promoting our city as the ideal destination for business and pleasure to the rest of the world. Your support coupled with our world-class infrastructure, innovative business environment and ever evolving investment opportunities, means we can get back to ‘connecting continents’ in no time.

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Tel: +27 31 311 4227 Email: invest@durban.gov.za web: invest.durban

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Extensive first-world road, rail, sea and air

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The city of Durban (eThekwini Municipality) is South Africa’s second most important economic region

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Rated in top 5 ‘Quality of Living’ cities in Africa and Middle East by Mercer Consulting in 2015 Named one of the New 7 Wonders Cities by the Swiss-based New 7 Wonders Foundation in 2014 1 01 00 1

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DURBAN CHAMBER OF COMMERCE AND INDUSTRY NPC

WE CAN HELP YOUR BUSINESS A: 101 Isaiah Ntshangase Road, Durban 4001 | E: info@durbanchamber.co.za W: www.durbanchamber.co.za | T: +27 31 335 1000 | F: +27 31 303 1149

WHO WE ARE Policy and advocacy are at the heart of our work and we assist members HR consultancy and more) across a broad spectrum of sectors, engaging thought leadership through forum webinars and other networking events,

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our strategic purpose is to help create a conducive economic and business environment to facilitate and promote economic growth in the region in partnership with key stakeholders.

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InBusinessForABetterWorld

CONTENTS

CONTENTS KwaZulu-Natal 2021/22 Edition

Introduction Foreword 8 A unique guide to business and investment in KwaZulu-Natal.

Special features Regional overview of KwaZulu-Natal

Ports and exports: KwaZulu-Natal has an abundance of both

Infrastructure projects will help the province build back better.

Companies in a wide range of sectors are seeing potential in Africa and China.

Economic sectors Agriculture 26 A Value Chain Master Plan promises solutions for the sugar industry.

Forestry and paper

Mining

Engineering

Oil and gas

A beekeeping project has reduced forest fires. Coal mining and processing has resumed. A respected university unit is expanding its brief. A new tanker will improve port services.

KWAZULU-NATAL BUSINESS 2021/22

Inspiring hope and enabling dreams

tandard Bank has a long and storied history in KwaZulu-Natal where we have had a presence for more than 150 years. In 1863 the bank opened its third South African branch in Durban.

Over the decades Standard Bank has continued to evolve and adapt with South Africa’s sociopolitical and structural changes. Under the new dispensation Standard Bank has enjoyed strong and cordial working relationships with government and municipalities in KwaZulu-Natal. Africa is our home, we drive her growth, and we do this by being a catalyst for inclusive and sustainable economic growth in the countries in which we operate, and by making life better for our fellow Africans by doing business the right way.

Driving growth Our people and processes are outwardly focused on our clients as their needs and expectations change. Standard Bank’s business activities have social, economic and environmental (SEE) impact in the economies and communities in which we operate. There are seven specific areas in which we believe we can best drive Africa’s growth, while making a positive impact on society, the economy, and the environment: • • • • • •

We want to fulfil dreams, help people take steps in life and organise and execute our strategies at the right time, on the right channels while fulfilling humanity. This means evolving to being a platform business. And our platform’s purpose is to match the individual needs of users and facilitate the exchange of goods and services, enabling value creation for all participants. Client centricity places our clients at the centre of everything we do.

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Financial inclusion. Job creation and enterprise development. Infrastructure. Africa trade and investment. Climate change and sustainable finance. Education and skills development. Health.

We are in the business of inspiring hope and enabling dreams. We believe that dreams matter because they fuel our growth. Soon we will be the most truly digital, the most truly human, the most competitive, the most profitable, and the most purpose-driven services group in the history of Africa. ■

Image by Captureson Photography on Unsplash

Growing with KwaZulu-Natal since 1863.

CONTENTS

Construction and property

The north coast continues to attract high prices.

Tourism 37 Dedicated funds are promoting transformation.

Manufacturing 38 Cellphones are now made in KwaZulu-Natal.

Automotive 39 Stanger will host a new battery factory.

Education and training

An ambitious scheme aims to prepare young people for the world of work.

Water 44 Waste-water works are being upgraded.

Energy 45 Toyota dealers are using less energy.

Banking and financial services

Development finance and SMME support

Choices for South African financial consumers are expanding. Exxaro and Bell are teaming up to help SMMEs.

References Key sector contents

Overviews of the main economic sectors of KwaZulu-Natal.

Index

24 IBC

ABOUT THE COVER: Rich agricultural soil supports the intensive cultivation of sugarcane in the iLembe District Municipality. Located north of Durban with excellent connections to the port of that city and Richards Bay, iLembe is also host to the King Shaka International Airport and the Dube TradePort. Several companies have their national headquarters in Ballito. Credit: Enterprise iLembe.

KWAZULU-NATAL BUSINESS 2021/22

EBH South Africa Trusted ship repair, marine and industrial engineering for over 140 years.

lgin Brown and Hamer, having been founded in 1878, is still regarded as one of the oldest shipyards in Southern Africa. Since the takeover by new management in 2018 the goal was to sustain the reputation of the company in servicing the marine and industrial sectors, with high-quality facilities and on-time delivery. Services The Elgin Brown and Hamer Group comprises eight companies under the group holding. We have several strategic subsidiaries who carry out specific divisional work rendering a full in-house service in all aspects of ship repair and industrial engineering as follows: • • • • • • • •

Steel Repairs and Steel Fabrication Mechanical Repairs (Diesel and Turbo) Blasting and Coating (PMC) Pipe Fabrications and Repairs Machining and Hydraulics (M&H) Electrical Repairs and Renewals (Electro Marine) Carpentry and Insulation Scaffolding

We are committed to superior engineering solutions by providing diverse and innovative services to all our clients.

DURBAN HEAD OFFICE Lower Bremen Road, Bayhead, Durban PO Box 29079, Maydon Wharf, 4057 Tel: +27 31 205 6391 Email: shiprep@ebh.co.za

Website: www.ebh.co.za

What sets us apart? EBH South Africa has a privatelyowned floating dock in the Port of Durban with a lifting capacity of 8 500 tons, a floating crane with a lifting capacity of 60 tons at 10 metres, barges, and a launch. Our workshops are fully equipped and have the capacity to undertake various engineering works, both marine and industrial, at any given time. The company’s commitment to safety and quality is evident in its certification with the Bureau Veritas ISO 9001:2015 quality management system, which is complemented by ISO 3834 accreditation. The company is also a Level 2 B-BBEE contributor. Achievements In 2020, EBH SA was pleased to announce our association with CR Ocean as a Southern African Region Agent for the Marine Exhaust Gas Scrubbers. Our subsidiar y company Marine & Hydraulics was also named as the distributor for sales of original Syncrolift® products in South Africa. EBH (Pty) Ltd recently installed B a l l a s t W a t e r Tr e a t m e n t System (BWTS) on various drydocking vessels in the yard which was a success and to the customers’ satisfaction. We are available to assist in the ports of Durban, Richards Bay, Cape Town, Saldanha Bay, Port Elizabeth and East London. ■

KWAZULU-NATAL BUSINESS 2021/22

FOREWORD

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

Credits Publishing director: Chris Whales Editor: John Young Managing director: Clive During Online editor: Christoff Scholtz Designer: Simon Lewis Production: Aneeqah Solomon Ad sales: Gavin van der Merwe Sam Oliver Jeremy Petersen Gabriel Venter Vanessa Wallace Shiko Diala Administration & accounts: Charlene Steynberg Kathy Wootton Printing: FA Print

he 2021/22 edition of KwaZulu-Natal Business is the 13th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special 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 is 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.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces, our flagship South African Business title and the addition to our list of publications, African Business, which was launched in 2020. ■

Chris Whales Publisher, Global Africa Network Media | Email: chris@gan.co.za PUBLISHED BY

DISTRIBUTION

KwaZulu-Natal Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies. Member of the Audit Bureau of Circulations

ISSN 1995-1310

COPYRIGHT | KwaZulu-Natal Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Academy of Digital Arts, African Marine Solutions, Bell Equipment, Collins Residential, Enterprise iLembe, Kevin Folk on Unsplash, Hodari Properties, Hulamin Rolled Products, Isandlwana Battlefields Route,

KWAZULU-NATAL BUSINESS 2021/22

Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za

Mark Harpur on Unsplash, Mondi, OL architects, SA Canegrowers, Sappi, Anton Swanepoel, South32, Toyota SA, Transnet National Ports Authority, Transnet Port Terminals, Umgeni Water, University of KZN, Viking Sun/Philip Wilson. DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in KwaZulu-Natal is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

SMME VIRTUAL ROADSHOW PRACTICAL AND USEFUL INFORMATION ON SMALL, MEDIUM AND MICRO-BUSINESS IN SOUTH AFRICA.

TO REGISTER: Visit www.gan.co.za and then SMME Virtual Roadshow

Since 2014, the SMME Roadshow has supported small business in South Africa. Following the unprecedented challenges of 2020, Global Africa Network is relaunching the SMME Roadshow in a fully virtual, nationwide format. The SMME Virtual Roadshow, brought to you by Global Africa Network Media with Nemesis Accounting, SME Warrior and Aurum Wealth Creators, takes the form of presentations and practical guidance from thought leaders and experts in their fields. Presentations are pre-recorded for quality and convenience and presenters and their teams will be on hand to engage and interact with delegates. Delegates will also be able to network with other delegates. Who should attend? SMMEs requiring support and guidance on the following topics should attend:

ABOUT GLOBAL AFRICA NETWORK Global Africa Network Media (GAN) is an established authority on business development in South Africa’s nine provinces. GAN’s online products include its well-established B2B portal, www. globalafricanetwork.com, and its monthly business and investment e-newsletters, with a reach of over 53 000 subscribers. Each of the nine titles and the national journal, South African Business, has been utilised by all levels of government, parastatals, corporates, and national and provincial businesses. GAN is a specialist in small and developing business, and the company is a trusted partner of business chambers and other representatives of organised business in each province. For information on sponsorship opportunities, email info@gan.co.za

• • • • • • •

Access to funding Access to markets Business revival Training and skills development Compliance and regulatory Technology support Running a business

Each of South Africa’s nine provinces will be represented at the Roadshow, and will showcase incentives, services and opportunities available to SMMEs.

A REGIONAL OVERVIEW OF

KWAZULU-NATAL

Infrastructure projects will help the province build back better. By John Young

“

usiness events to be hosted in 2020/21 are expected to inject an estimated R1.2-billion into the local economy.” When the Premier of KwaZulu-Natal, Sihle Zikalala, spoke these words on 4 March 2020 at the Royal Show Grounds in Pietermaritzburg, business tourism and tourism in general were projected to be significant earners for the province. A day later, on Thursday 5 March, the National Institute for Communicable Diseases confirmed that a suspected case of Covid-19, a person recently returned from a trip to Italy, had tested positive. And that was the end of tourism for the foreseeable – or unforeseeable – future. The first half of 2019 brought in a total of R14.4-billion in tourist spending and the year as a whole delivered an increase of 8% in international visitor numbers. The newlycreated Cruise Ship Terminal at the Port of Durban was ready to welcome guests, but it would be at least a year before cruises could resume. Tourism is a key sector in the KwaZulu-Natal economy and provides livelihoods to many

KWAZULU-NATAL BUSINESS 2021/22

thousands of families in urban and rural areas. The closing of borders brought real hardship to many areas in the province. Infrastructure The other good news in the Premier’s State of the Province address was not subject to the spread of deadly viruses. This related to infrastructure spending plans which give hope for the province’s ability to “build back better”. Some of the infrastructure plans include: • A housing project in Msunduzi comprising 25 000 units. The R2.5-billion Vulindlela project provided employment for 1 713 people and is in the final phase of construction. • New bridges to enable scholars to get to school safely. There are many rivers in the province so the 2020/21 budget makes provision for seven vehicular bridges and 12 Bailey bridges to be built in rural areas in partnership with the South African National Defence Force (SANDF). • •Upgrade of the N3/N2. The South African

SPECIAL FEATURE

Investment Between May 2019 and February 2020, inward investment commitments to the value of more than R15-billion were made. These included amounts pledged in most of the priority sectors identified by the provincial government, namely agro-processing, healthcare, manufacturing, renewable energy and tourism and property development. Other priority sectors include aloe processing, bio-ethanol fuel, fish processing and, more broadly, the Oceans Economy. The Special Economic Zones (SEZs) at Richards Bay and King Shaka International Airport (the Dube TradePort) are key components of the strategy of attracting investors to the province. Dube TradePort attracted R7-billion between 2012 and 2019 and the same amount is expected to accompany the development of Phase 1A and Phase 1F of the Richards Bay Industrial Development Zone (RBIDZ). Two investors in 2019 were edible oils manufacturer Wilmar Processing SA, which is investing more than R1-billion in a plant, and Elegant Afro Line, which will spend about R900-million on its chemicals plant. There are plans to establish a clothing and textiles SEZ in the province to build on the province’s established strength in the sector and an automotive supplier park will soon be in operation. Toyota and Bell Equipment play a big role in the automotive sector while the Engen Oil Refinery is a strategic asset. The province’s existing infrastructure, good soils and fine weather provide a solid base for future growth. KwaZulu-Natal already has significant capacity in heavy and light manufacturing, agriprocessing and mineral beneficiation, all of which is supported by South Africa’s two busiest ports (Richards Bay and Durban), the country’s most active highway (the N3), a modern international airport and pipelines that carry liquids of all types to and from the economic powerhouse of the country around Johannesburg in the interior. Sappi’s dissolving pulp mill at Umkomaas south of Durban is one of the province’s most significant industrial sites as it produces huge quantities of a material that is used in viscose staple fibre, which in turn is used in clothing

A wetland conservation project run by Mondi, the packaging and paper company.

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National Roads Agency will spend R35-bllllon on this multi-phase project. The launch of the Durban Aerotropolis Master Plan. The plan is to develop an airport city centred on King Shaka International Airport. The Department of Economic Development, Tourism and Environmental Affairs (DEDTEA) has allocated R30-million towards the construction of a terminal building at Mkhuze airport following its runway upgrade. The department is also working with Ray Nkonyeni Local Municipality to upgrade the terminal building at Margate airport. Creation of an automotive supplier park. DEDTEA, Dube TradePort and eThekwini Municipality have signed a memorandum of understanding. The provincial government intends contracting Broadband lnfraco to provide network services to be used by Dube TradePort to roll out more than 810 WiFi hotspots at 405 sites across the province. The Isandlwana Heritage Project. It may seem ironic to be building tourism infrastructure at this time, but the future will include tourism. The Department of Transport and SANRAL are consulting local communities about further developing this historic site.

KWAZULU-NATAL BUSINESS 2021/22

Durban Container Terminal. Credit: TPT

Marine transport and manufacturing. Offshore oil and gas exploration. Aquaculture. Marine protection and ocean governance. Small harbours. Coastal and marine tourism.

and textiles. Together with production volumes from Sappi’s mill in neighbouring Mpumalanga province, the company is the world’s largest manufacturer of dissolving pulp. Mondi is the province’s other global giant in forestry, paper and packaging.

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Oceans Economy KwaZulu-Natal province has a long coastline that stretches from the Mtamvuna River in the south to the Isimangaliso Wetland Park in the north. The province’s contact with the sea has brought obvious benefits: fishing, fine beaches enjoyed by millions of tourists and two great ports. These ports export vast quantities of minerals (mostly through Richards Bay) and manufactured goods (Durban) and serve as an important conduit for imports of all sorts. The Richards Bay Coal Terminal exports massive quantities of coal while the Port of Durban is the busiest port in Africa. However, planners want to expand the economic benefits that the ocean can bring. An Oceans Economy Review Workshop has come up with a range of sub-sectors that can help grow the provincial economy and invite foreign direct investment:

Strategies to grow the Oceans Economy dovetail with ongoing projects to boost the capacity of the province’s ports and to explore for gas and oil in the Indian Ocean. If oil rigs were to start visiting the KZN coastline on a regular basis, the ship-repair industry would grow exponentially. The Oceans Economy is one of the focus areas that has been chosen by national government to be part of Operation Phakisa, a focused, goal-driven attempt to jump-start a specific economic sector. Overall, Phakisa intends creating a million jobs by 2033 and injecting R177-billion into national GDP. The decision to build a cruise-ship terminal at the Port of Durban is a good example of the kind of decision that is in line with an “Oceans Economy” approach.

KWAZULU-NATAL BUSINESS 2021/22

• • • • •

SPECIAL FEATURE Geography The mixed topography of the province allows for varied agriculture, animal husbandry and horticulture. The lowland area along the Indian Ocean coastline is made up of subtropical thickets and Afromontane Forest. High humidity is experienced, especially in the far north and this is a summer rainfall area. The centrally-located Midlands is on a grassland plateau among rolling hills. Temperatures generally get colder in the far west and northern reaches of the province. The mountainous area in the west – the Drakensberg – comprises solid walls of basalt and is the source of the region’s many strongly running rivers. Regular and heavy winter snowfalls support tourist enterprises. The Lubombo mountains in the north are granite formations that run in parallel.

furniture, leather goods and food. The city has good transport links along the N3 national highway, excellent schools and a lively arts scene. The Midlands Meander is a popular tourist destination. Eastern region Although most of this area is rural, Richards Bay is one of the country’s industrial hot spots because of its coal terminal, port and aluminium smelters. The Richards Bay Industrial Development Zone (RBIDZ) is a major economic node and with the possibility of a power plant being built, the RBIDZ could become an energy hub. Mining is an important sector in this region. The other major urban centre is Empangeni which has several educational institutions. The King Shaka International Airport is adjacent to the Dube TradePort, a Special Economic Zone (SEZ) which is attracting investors.

Regions KwaZulu-Natal has 10 district municipalities and a metropolitan municipality, the most of any province in South Africa. In economic terms, the province offers diverse opportunities.

Northern region The economic powerhouse is Newcastle in the north-west: coal-mining, steel processing and manufacturing are major activities. Some old coal mines are being reopened by new coal companies to cater for the country’s power stations’ demand for the fuel. Game farms, trout fishing and hiking are part of an attractive package for tourists, and Zululand is a popular destination for cultural experiences. The region is rich in Anglo-Boer War history which includes battle sites such as Isandlwana and Rorke’s Drift. ■

Southern region This area is the province’s most populous. The city of Durban has experienced booms in sectors such as automotive, ICT, film and call centres. The promenade now reaches all the way to the harbour and the Point development will benefit. Major investments are taking place at the Port of Durban with the current centrepiece being the Durban Cruise Terminal. The Container Terminal is also undergoing an extensive overhaul. Durban’s conference facilities are well utilised, but many opportunities still exist in chemicals and industrial chemicals, food and beverages, infrastructure development and tourism. Further south, Margate’s airport and Port Shepstone’s beachfront are assets. Western region Also known as the Midlands, this is a fertile agricultural region which hosts the popular annual Royal Show. It produces sugarcane, fruit, animal products, forestry and dairy products. Pietermaritzburg is the provincial capital and home to a major aluminium producer along with several manufacturing concerns, including textiles,

Credit: Isandlwana Battlefields Route

KWAZULU-NATAL BUSINESS 2021/22

KwaZulu-Natal Provincial Local Government Government LISTING LISTING KwaZulu-Natal Provincial Local Government Government LISTING A guide to KwaZulu-Natal's municipalities.

A guide to KwaZulu-Natal’s provincial government departments. All addresses are located uMzimkhulu in Pietermaritzburg (code 3201) unless stated otherwise. VisitMunicipality www.kznonline.gov.za. ETHEKWINI METROPOLITAN MUNICIPALITY 263 Dr Pixley ka Seme Street, Durban 4001 Tel: +27 39 259 5000 | Fax: +27 39 259 0427 Office of the Premier Education A KwaZulu-Natal's Tel:guide +27 31 311to1111 | Fax: +27 31 311 2170 municipalities. Website: www.umzimkhululm.gov.za Premier: Sihle Zikalala MEC: Kwazikwenkosi Innocent Mshengu Website: www.durban.gov.za 5th Langalibalele Street Anton Lembede Building, 247 Burger Street 5thFloor, floor,Telkom MosesBuilding, Mabhida300 Building, 300 Langalibalele Street A guide KwaZulu-Natal’s provincial government All areLISTING located Tel: +27 33 341to3300 Tel: +27departments. 33 846DISTRICT 5000 | Fax: +27 33addresses 355 1293 AMAJUBA DISTRICT MUNICIPALITY ILEMBE MUNICIPALITY uMzimkhulu Municipality in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kznonline.gov.za. Fax: +27 33 331 7368 Website: www.kzneducation.gov.za ETHEKWINI METROPOLITAN Unit B9356, Ithala Building, Section 1, Main Street,MUNICIPALITY Madadeni Township, 59/61 Mahatma Gandhi St, KwaDukuza 4450 263 Dr Pixley ka Seme Street, Durban 4001 Tel: +27 +273239437 2599300 5000| |Fax: Fax:+27 +273239 0427 Newcastle 2940 437259 9587 Office of theand Premier Education Agriculture Rural Development Health Tel: +27 31 Website: www.ilembe.gov.za www.umzimkhululm.gov.za 34 311 3291111 7200| |Fax: Fax:+27 +273134311 3142170 3785 MEC: Kwazikwenkosi Innocent Mshengu Premier: Sihle MEC: Bongiwe Nomusa Sithole-Moloi municipalities. Nomagugu Simelane-Zulu A guide to Zikalala KwaZulu-Natal's Website: www.durban.gov.za www.amajuba.gov.za KwaDukuza Municipality Anton Lembede Building, 247 Burger Street 5th Floor, Telkom Building, 300 Langalibalele Street Cedara College, Cedara Road 1st Floor, 330 Langalibalele 5th Floor, Moses Mabhida Building, 300 Langalibalele Street Natalie Building, 11th floor,Street 330 Langalibalele Street Dannhauser Municipality Tel: +27 33 846 5000 | Fax: +27 33 355 1293 Tel: +27 33 341 335 3300 9100 395 2111 AMAJUBA DISTRICT MUNICIPALITY ILEMBE DISTRICT MUNICIPALITY Tel: +27 32 437 5000 A to7368 KwaZulu-Natal’s provincial government departments. All addresses are located Website: www.kzneducation.gov.za Fax: +27 33 343 8255 www.kznhealth.gov.za Unit B9356, Ithala Building, Main Street, Madadeni Township, 59/61 Mahatma 4450 Tel:guide +27 34331 621 2666 | Fax:Section +27 341,621 3114 Fax: +27 32 437 Gandhi 5098 St, KwaDukuza uMzimkhulu Municipality in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kznonline.gov.za. Website: www.kzndard.gov.za ETHEKWINI Newcastle 2940 METROPOLITAN MUNICIPALITY Tel: +27 32 437 9300 | Fax: +27 32 437 9587 Website: www.dannhauser.gov.za Website: www.kwadukuza.gov.za Health Agriculture and Rural Development Human Settlements and Public 263 ka Seme Durban 40013785 Tel: +27 39 259 5000 | Fax: +27 39 259 0427 Works Tel: Dr +27Pixley 34 329 7200 Street, | Fax: +27 34 314 Website: www.ilembe.gov.za Office of the Premier Education MEC: Bongiwe Nomusa Sithole-Moloi MEC: Nomagugu Simelane-Zulu Arts and Culture Neliswa Peggy Nkonyeni eMadlangeni (Utrecht) Municipality Mandeni Municipality Tel: +27 31www.amajuba.gov.za 311 1111 | Fax: +27 31 311 2170 Website: www.umzimkhululm.gov.za Website: MEC: Kwazikwenkosi Innocent Mshengu Street Premier: Sihle Zikalala MEC: Hlengiwe Goodness Slindile Mavimbela KwaDukuza Cedara College, 1st 330 Langalibalele Street 203 Church Natalie 11thMunicipality Floor, 330 Langalibalele Website: www.durban.gov.za Tel: +27 34 331Cedara 3041 |Road Fax: +27 34 331 4312 Tel:Floor, +27Building, 32Street 456 8200 Dannhauser Municipality Anton Lembede Building, 247 Burger Street 5th Floor, Telkom Building, 300 Langalibalele Street 5th floor, Moses Mabhida Building, 300 Langalibalele Street Tel: +27 33 335 9100 Tel: +27 33 395 2111 222 Jabu Ndlovu Street Tel: 437 5000 Website: www.emadlangeni.gov.za Fax:+27 +2732 32392 4566400 2504| Fax: +27 33 392 6490 Tel: +27 5000 33 355 1293 Tel: AMAJUBA DISTRICT ILEMBE DISTRICT MUNICIPALITY Fax: +27 33 343 8255 Website: Tel: +27 33 264 3400 www.kznworks.gov.za Tel:+27 +2733 34341 6213300 2666 | Fax: +27 34MUNICIPALITY 621 3114 Fax: +2733www.kznhealth.gov.za 32846 437 5098| Fax: +27 Website: www.mandeni.gov.za Newcastle Municipality Website: www.kzneducation.gov.za Fax: +27 33 331 Website: www.kzndard.gov.za Fax: +27 33 3947368 2237 Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township, 59/61 Mahatma Gandhi St, KwaDukuza 4450 Website: www.dannhauser.gov.za Website: www.kwadukuza.gov.za Human Settlements Provincial Treasury Website: Maphumulo Municipality Newcastle Tel: +27 32 437 9300 | Fax: +27and 32 437Public 9587 Works Tel: +27 www.kzndac.gov.za 342940 328 7600 | Fax: +27 34 312 1570 Health Agriculture and Rural Development Arts MEC: Neliswa Peggy Nkonyeni MEC for Finance: Ravigasen Ranganathan Pillay eMadlangeni Mandeni Tel: +27and 34www.newcastle.gov.za 329Culture 7200 |(Utrecht) Fax: +27 34 314Municipality 3785 Website: Tel: +27 www.ilembe.gov.za 32 481Municipality 4500 Website: MEC: Bongiwe Sithole-Moloi MEC: Nomagugu Simelane-Zulu MEC: HlengiweNomusa Goodness Slindile Mavimbela Community Safety and Liaison 203 Treasury Chief Albert Luthuli Street, Website: Tel: +27 www.amajuba.gov.za 34 331 3041 | Fax: +27 34 331 4312 Tel: +27 32 456 8200 Fax:Church +27House, 32Street 481145 2053 MEC: Thomas Mxolisi Kaunda KwaDukuza Municipality MEC: Bheki Ntuli Cedara College, Cedara Road 1st Floor, 330 Langalibalele 222 Jabu Ndlovu Street Tel: +27 33 392 6400 Fax:Street +27 33 3922486 6490 Street 897 4200 ||floor, Fax: +27 342 HARRY GWALA DISTRICT MUNICIPALITY Natalie Building, 11th 33033 Langalibalele Website: www.emadlangeni.gov.za Fax: +27 www.maphumuloonline.gov.za 32 456 2504 Website: Dannhauser Municipality Tel: 335 Tel: +27 395 Tel: +27 33Street, 2649100 3400 Website: 179 Jabu33 Ndlovu Street www.kzntreasury.gov.za Tel: +2733www.kznworks.gov.za 32 4372111 5000 Website: www.mandeni.gov.za 40+27 Main Ixopo 3276 Newcastle Municipality Fax: Website: Fax: +27 3333 394 2237 Tel: + 2733 341 9300 Ndwedwe Municipality Tel: +27 34 621 2666 | Fax: +27 34 621 3114 Fax: +27www.kznhealth.gov.za 32 437 5098 Tel:+27 +27 39343 8348255 8700 Provincial Treasury Sport and Recreation Website: Website: www.kzndac.gov.za Fax: ++27 27www.kzndard.gov.za 342 6345 Maphumulo Website: www.dannhauser.gov.za Website: Tel: 3433 Tel: +27 www.kwadukuza.gov.za 32 532 5000Municipality Fax:+27 39328 8347600 1701| Fax: +27 34 312 1570 Human Settlements and Public Works MEC Finance: Ravigasen Ranganathan Pillay MEC:for Hlengiwe Goodness Slindile Mavimbela Website: Tel: Website: www.kzncomsafety.gov.za www.newcastle.gov.za Fax:+27 +2732 32481 5324500 5031/2 www.harrygwaladm.gov.za Arts and Culture MEC: Neliswa Peggy Nkonyeni Community Safety and Liaison eMadlangeni (Utrecht) Municipality Mandeni Municipality Treasury House, 145 Chief Albert Luthuli Street, 135 Pietermaritz Street Fax: +27 www.ndwedwe.gov.za 32 481 2053 Website: MEC: Hlengiwe Goodness Slindile Mavimbela Thomas Mxolisi Kaunda Cooperative Governance and Traditional MEC: Bheki Ntuli 203 Church Street Tel: +27 897 9400 HARRY GWALA DISTRICT MUNICIPALITY Dr+27 Dlamini Zuma Municipality Tel: 34 331 3041 | Fax: +27 34 331 4312 Tel: +2733 32www.maphumuloonline.gov.za 4564200 8200| Fax: +27 33 342 2486 Website: Affairs 222 Jabu Ndlovu Street Tel: +27 33 392 179 Jabu Ndlovu Street Website: www.kzntreasury.gov.za www.kzn.dsr.gov.za Website: Fax: +27 32 4566400 2504| Fax: +27 33 392 6490 40 Street, Tel:Main + 27www.emadlangeni.gov.za 39 833Ixopo 10383276 | Fax: + 27 39 833 1179 MEC: Sipho Hlomuka Tel: +27 264 3400 Website: Tel: ++27 273333 341 9300 Ndwedwe Municipality KINGwww.kznworks.gov.za CETSHWAYO DISTRICT MUNICIPALITY Website: www.mandeni.gov.za Tel: 39 834 8700 Website: www.ndz.gov.za Sport Recreation Socialand Development Newcastle Municipality Fax: 394 2237 Fax: ++27 273333 342 6345 330 Langalibalele Street Tel: 32 532 5000 Fax:+27 39 834 1701 King+27 Cetshwayo House, Kruger Rand Rd, Richards Bay 3900 Provincial Treasury MEC: Hlengiwe Goodness Nonhlanhla MildredSlindile Khoza Mavimbela Greater Municipality Website: Maphumulo Municipality Website: www.kzncomsafety.gov.za Tel: +27 33 395 2831 Tel: +27 www.kzndac.gov.za 34 328Kokstad 7600 | Fax: +27 34 312 1570 Fax: Website: www.harrygwaladm.gov.za Tel: +27 32 35532 7995031/2 2500 MEC for Finance: Ravigasen Ranganathan Pillay 135 Pietermaritz Street 208 Hoosen Haffejee Street Fax: +27 33 345 6432 Tel: Website: Website: Tel: +27www.newcastle.gov.za 39 797 6600 | Fax: +27 39 727 5501 Fax:+27 +2732www.ndwedwe.gov.za 35481 7894500 1641 Community Safety and Liaison Cooperative Governance and Traditional Treasury House, 145 Chief Albert Luthuli Street, Tel: +27 33 897 9400 264 5402 Website: www.kzncogta.gov.za Dr Dlamini Zuma Municipality Fax: +27 32www.kingcetshwayo.gov.za 481 2053 Website: www.kokstad.gov.za Website: MEC: Thomas Mxolisi Kaunda Affairs MEC: Bheki Ntuli Tel: +27 897 HARRY GWALA Website: Fax: +2733www.kzn.dsr.gov.za 33 3414200 9610| Fax: +27 33 342 2486 Website: www.maphumuloonline.gov.za Tel: + 27 39 833 1038 | DISTRICT Fax: + 27 39 833MUNICIPALITY 1179 MEC: Sipho Hlomuka Economic Development, Tourism and Website: www.kzndsr.gov.za uBuhlebezwe Municipality City of uMhlathuze DISTRICT Municipality 179 Jabu Ndlovu Street3276 Website: www.kzntreasury.gov.za Website: www.kzndsd.gov.za KING CETSHWAYO MUNICIPALITY 40 Main Street, Ixopo Website: www.ndz.gov.za Social Development Land Tel: 27Affairs 33 Ndwedwe Municipality 330 Street Tel: +27 39 834 8700 King Cetshwayo House,| Fax: Kruger Rd,5444 Richards Bay 3900 Tel:+Langalibalele +27 39341 8349300 7700 | Fax: +27 39 834 1168 Tel: +27 35 907 5000 +27Rand 35 907 Sport and Recreation MEC: Nonhlanhla Mildred Khoza MEC: Nomsa Dube-Ncube Transport Greater Kokstad Fax: ++27 273333 342 6345 Tel: +27 2831 Tel: +27 Fax: 39395 834 1701 Municipality Tel: +2732www.umhlathuze.gov.za 35532 7995000 2500 Website: www.ubuhlebezwe.gov.za Website: MEC: Hlengiwe Goodness Slindile Mavimbela MEC: Thomas Mxolisi Kaunda Website: www.kzncomsafety.gov.za 208 Hoosen Haffejee Street Fax: +27 33 345 6432 270 Jabu Ndlovu Street Fax: +27 32 532 5031/2 Website: www.harrygwaladm.gov.za MEC: Bheki Ntuli Tel: +27 39 797 6600 | Fax: +27 39 727 5501 Fax: +27 35 789 1641 135 Pietermaritz Street Tel: +27 33www.ndwedwe.gov.za 264 5402 Website: www.kzncogta.gov.za 172 Burger Street Tel: +27 33 264 2500 | Fax: +27 331 310 5416 Website: Website: www.kokstad.gov.za Website: www.kingcetshwayo.gov.za KWAZULU-NATAL BUSINESS 2019/20 Cooperative Governance and Traditional 60Tel: Dr Dlamini Zuma Municipality Fax: +27 341 9610 Tel:+27 + 27333333897 3559400 8600 Website: www.kzndedt.gov.za Website: www.kznedtea.gov.za Affairs Economic Tourism Website: www.kzndsr.gov.za uBuhlebezwe City Municipality Website: www.kzn.dsr.gov.za Website: www.kzndsd.gov.za Fax: + 27of 33uMhlathuze 355 8092 Tel: + 27 39 833Development, 1038 Municipality | Fax: + 27 39 833 1179 and MEC: Sipho Hlomuka Land Affairs KING CETSHWAYO Web: www.kzntransport.gov.za Website: Tel: +27www.ndz.gov.za 39 834 7700 | Fax: +27 39 834 1168 Tel: +27 35 907 5000 | Fax: +27DISTRICT 35 907 5444 MUNICIPALITY Social Development MEC: Nomsa Dube-Ncube Transport 330 Langalibalele Street King Cetshwayo House, Kruger Rand Website: www.ubuhlebezwe.gov.za Website: www.umhlathuze.gov.za Rd, Richards Bay 3900 Bheki Ntuli MEC: Nonhlanhla Mildred Khoza MEC: Thomas Greater Tel: +27 395Kokstad 2831 270 Jabu33Ndlovu Street Municipality Tel: +27 35Street 799Mxolisi 2500 Kaunda 172 Hoosen Burger Haffejee 208 Street Fax: 345 6432 172 Burger Street Tel: +27 33 264 2500 | Fax: +27 331 310 5416 Tel: +27 39 797 6600 | Fax: +27 39 727 5501 Fax:++27 35355 789 8600 1641 | Fax: + 27 33 355 8092 Tel: 27 33 KWAZULU-NATAL BUSINESS 2019/20 60Tel: +27 264 Website: www.kzncogta.gov.za Tel: + 273333 3555402 8600 Website: www.kzndedt.gov.za Website: www.kznedtea.gov.za Website: www.kokstad.gov.za Website: www.kingcetshwayo.gov.za Website: www.kzntransport.gov.za Fax: Fax:+27 + 273333341 3559610 8092 Economic Development, Tourism and Website: www.kzndsr.gov.za uBuhlebezwe Municipality Citywww.kzntransport.gov.za of uMhlathuze Municipality Website: www.kzndsd.gov.za Web: Land Affairs Tel: +27 39 834 7700 | Fax: +27 39 834 1168 Tel: +27 35 907 5000 | Fax: +27 35 907 5444

KwaZulu-Natal Provincial Local Government Government

tourist enterprises. The Lubombo Mountains in the north are granite formations that run in parallel.

LISTING

Regions

KwaZulu-Natal Provincial KwaZulu-Natal metropolitan Government and district municipalities

KwaZulu-Natal has 11 district municipalities, the most of any province in South Africa and, in economic terms, the province offers diverse opportunities.

N17

MOZAMBIQUE

Convention Centre Complex, which hosts the Southern region annual Tourism Indaba. The province's climate lends itself to every kind of This area is the province’s most populous. The city of A guide to KwaZulu-Natal’s provincial government departments. All addresses are located outdoor pursuit and its excellent beaches are always Durban has experienced booms in sectors such as in Pietermaritzburg (code 3201) unless otherwise. Visit www.kznonline.gov.za. Durban is the principal of thestated province’s only metropolitan popular. Big sports eventscity are regularly hosted in automotive, ICT, film and municipality, call centres. Major investeThekwini Metropolitan Municipality. KwaZulu-Natal, which has become something of ments are taking place at the Port of Durban and Office of the Premier Education a home to mass-participation events such as the there is a possibility that the old airport south of the MEC: Kwazikwenkosi Innocent Mshengu Premier: Sihle Zikalala Comrades Marathon and the Dusi Canoe race. The city could become another port, if the money can be 5th Floor, Telkom Building, 300 Langalibalele Street province has excellent game and nature reserves.Anton Lembede Building, 247 Burger Street Tel: +27 33 846 5000 | Fax: +27 33 355 1293SWAZILAND Tel:DISTRICT +27 33 341 3300 MUNICIPALITY CITY Isimangaliso WetlandPRINCIPAL Park is a World Heritage Site KWAZULU-NATAL PROVINCE Website: www.kzneducation.gov.za Fax: +27 33 331 and7368 helps to fund 80 small businesses associated Mpumalanga with its business as a tourist site. Amajuba Newcastle Health AgricultureThe and Rural Development building of the King Shaka International MEC: Bongiwe Nomusa Sithole-Moloi MEC: Nomagugu Simelane-Zulu Airport to the north of Durban allows tourists to get Ixopo Harry Gwala toCedara superb Cedara College, Roadbeaches and game farms very quickly, 1st Floor, 330 Langalibalele Street Free State and the airport has its own industrial development Tel:iLembe +27 33 335 9100 Tel: +27 33 395 2111 KwaDukuza zone, the Dube TradePort. New international direct Fax: +27 33 343 8255 Website: www.kznhealth.gov.za flights have been announced; 4.5-million passenWebsite: King www.kzndard.gov.za Cetshwayo Richards Bay gers passed through the airport in 2014/15, almost Human Settlements and Public Works 300 000 of whom were foreign visitors or tourists (ACSA). N17

Bethal

Ermelo

Standerton

Piet Retief

N11

Volksrust

Paulpietersburg

Vrede

Pongola

R33

Utrecht

Newcastle

R69

R34

Vryheid R34

Dundee

R68

uLundi

R33

Bergville

Ladysmith

Colenso R74

eMpangeni

Kranskop

Estcourt

RA LESOTHO KE NSB ERG

St Lucia

Mtubatuba

Melmoth

MEC: Neliswa Peggy Nkonyeni 203 Church Street Tel: +27 33 392 6400 | Fax: +27 33 392 6490 Website: www.kznworks.gov.za PIETERMARITZBURG D Winterton

Hluhluwe

R65

N11

R74

Mkuze

Hlabisa

Glencoe

Harrismith

Arts Uguand Culture Port Shepstone MEC: Hlengiwe Goodness Slindile Mavimbela

R66

Nongoma

Mooi River

Richards Bay

Gingindlovu

Greytown

R33

KwaDukuza Stanger

Darnall

Pietermaritzburg Geography 222uMgungundlovu Jabu Ndlovu Street Tel: +27 33 264 3400 Fax:uMkhanyakude +27 33 394 DURBAN The2237 mixed topography ofMkuze the province allows for varProvincial Treasury ied agriculture, animal husbandry and horticulture. Website: www.kzndac.gov.za MEC for Finance: Ravigasen RanganathanINDIAN PillayOCEAN The lowland area along Dundee the Indian Ocean coastline uMzinyathi N Community Safety and Liaison is made up of subtropical thickets and Afromontane Treasury House, 145 Chief Albert Luthuli Street, Forest. High humidity isLadysmith experienced, especially Tel: in +27 33 897 4200 | Fax: +27 33 342 2486 MEC: Thomas Mxolisi Kaunda uThukela the Street far north, and this is a summer rainfall area. The 179 Jabu Ndlovu Website: www.kzntreasury.gov.za Eastern Cape centrally located Midlands is on a grassland plaZululand Ulundi Tel: + 27 33 341 9300 teau among rolling hills. Temperatures generally Sport and Recreation Fax: + 27 33 342 6345 MEC: Hlengiwe Goodness Slindile Mavimbela Website: www.kzncomsafety.gov.za KWAZULU-NATAL BUSINESS 2016/17 13514 Pietermaritz Street Cooperative Governance and Traditional Tel: +27 33 897 9400 Affairs Website: www.kzn.dsr.gov.za MEC: Sipho Hlomuka Social Development 330 Langalibalele Street MEC: Nonhlanhla Mildred Khoza Tel: +27 33 395 2831 208 Hoosen Haffejee Street Fax: +27 33 345 6432 Tel: +27 33 264 5402 Website: www.kzncogta.gov.za Fax: +27 33 341 9610 Economic Development, Tourism and Website: www.kzndsd.gov.za Land Affairs MEC: Nomsa Dube-Ncube Transport MEC: Thomas Mxolisi Kaunda 270 Jabu Ndlovu Street 172 Burger Street Tel: +27 33 264 2500 | Fax: +27 331 310 5416 Tel: + 27 33 355 8600 Website: www.kzndedt.gov.za 15 + 27 33 355 8092 KWAZULU-NATAL BUSINESS 2021/22 Fax: Web: www.kzntransport.gov.za Howick

Tongaat

Pinetown

R56

iXopo

Kokstad

Ballito

uMhlanga

Underberg

Harding

aManzimtoti

uMzinto

uMkomaas

Hibberdene

uMtentweni Port Shepstone Margate Southbroom

Port Edward

Motorway

Main Road Railway

TRANSFORMING TO A PLATFORM Standard Bank is investing heavily in digital transformation.

Imraan Noorbhai, Head Consumer Client Coverage

Investments in technology infrastructure have taken us towards being a platform provider and we continue to invest to complete this transformation. KwaZulu-Natal Standard Bank’s commercial success, social relevance and sustainability depends on having a deep understanding of our clients’ business. This places a responsibility on us to focus on solving for the customer in everything we do.

Hameed Noormahomed, Head Business Clients Coverage

Nathan Govender, Head Commercial Client Coverage

Image by Caspar Camille Rubin on Unsplash

What we do At Standard Bank we have begun the important journey towards being a platform business which provides a holistic ecosystem of products and services to our customer. This is driven by extensive investments in digital transformation, partnerships, and modern and advanced ways of working. We have entrenched new, more effective, and agile ways of working with cross-functional teams that embrace a growth mindset and who are constantly hungry to learn new skills.

Key sectors Our Business Clients segment strategically spans the entire KwaZulu-Natal, across all municipal boundaries covering key sectors such as Public Sector, Education, Agriculture, Franchising, Shari’ah, Chinese Banking and an Africa China Agent Proposition. Through our dedicated, specialised and highly-skilled teams, we can deliver a holistic customer-value proposition to our Business and Small Enterprise Banking clients as their trusted advisors. Our Commercial Banking segment offers holistic banking solutions across sectors to mid-corporate entities including growth opportunities into African and Chinese markets. Through our extensive network in Africa, China (in partnership with ICBC) and global strategic banking relationships, we work to understand the needs of our clients and to provide trusted advice and appropriate solutions that consider the risks, regulatory environment and realities in these markets. Our Consumer and High Net Worth Division aims to deliver a Universal Financial Services Offering with a wide range of solutions that are tailored to suit individual client needs throughout all journeys in their lives. Our solutions range from Student Banking to Young Professionals, Elite, Prestige and Private Banking as well as High Net Worth Individuals. Standard Bank Insurance, Assets Management and Fiduciary Services in KwaZulu-Natal seamlessly

Sidney Reddy, Head Business Clients, Region Coverage

deliver customised solutions to our clients to protect, grow and manage their individual needs. Our purpose is to provide peace of mind by enabling our clients to achieve their personal ambitions through best of breed solutions through the various businesses within the Group: Insurance (Standard Bank Financial Planning Services, Standard Bank Insurance Brokers, Standard Bank’s Direct Life Insurance Services), Assets Management (Investment Planning, Offshore Investing, Online Share Trading) and Fiduciary Services (Estate Planning, Wills Drafting and Safe Keeping, Estate Administration, and Trust Services and Beneficiary Care). What matters most Focussing on what matters most to our clients lies at the heart of our business. Standard Bank KwaZulu-Natal is constantly striving to create exceptional client experiences which are built on confidence, trust, thought leadership and an unwavering commitment to solutioning for our clients’ needs in the most appropriate way. Our heritage and intimate knowledge of the region and its socio-economic circumstances combined with the knowledge and expertise of our team of bankers and the wide range of services on offer means Standard Bank KwaZuluNatal is perfectly placed to realise our vision of being the leading financial services organisation in, for and across Africa, delivering exceptional client experiences and superior value. ■

Jean Hattingh, Head Consumer Clients, Region Coverage

Mano Singh, Head Insurance, Assets Management & Fiduciary

SPECIAL FEATURE

Ports and exports: KwaZulu-Natal has an abundance of both Companies in a wide range of sectors are seeing potential in Africa and China.

Credit: TNPA

new era in trade and export has begun and the traders, logistics operators and por ts of KwaZulu-Natal are in pole position to take up new opportunities. Not only is the province strategically located on the Indian Ocean but it already has excellent infrastructure which is being upgraded and improved. The official date for the new era was 1 January 2021 for that date marked the launch of the African Continental Free Trade Area (AfCFTA). All but one of Africa’s 54 countries have signed the agreement and a majority of countries have ratified it. Implementation was postponed for six months because of Covid-19. Tariffs on 90% of items are due to be reduced in the next decade although more time has been allocated to poorer countries to allow them time to adapt. The African market of 1.3-billion people is expected to grow to 2.5-billion by 2050 but the key statistic targeted by AfCFTA is intra-African trade. KWAZULU-NATAL BUSINESS 2021/22

Exports to the rest of the world made up between 80% and 90% of Africa’s total trade from 2000 to 2017 (UNCTAD). In 2019 about 27% of South Africa’s exports were delivered to the rest of the continent. As part of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), South Africa is already part of the most active regional bodies which are promoting integration and intra-regional trade. These regional groupings are best placed to start thinking beyond tariffs: more efficient customs posts, lower air-freight costs, better-run ports, regulatory alignment and improved rail and road infrastructure. Even before AfCFTA was signed, one of the largest independent wire manufacturers in the country, Hendok Group, set about steadily increasing its exports to other African countries. With more than 1 000 employees at the factory in the Phoenix Industrial Park in Durban, the company makes a number of types of wires and is the country’s biggest producer of nails.

SPECIAL FEATURE Donald Trump’s interests did not stretch to Africa during his presidency of the US but he preferred bilateral, rather than regional agreements so it is surprising that the African Growth and Opportunity Act (AGOA) survived the Trump years. The deal, which gives duty-free access to about 6 500 products from 39 SubSaharan countries, is due to expire in 2025. As much as African countries’ trade within the continent will grow, exports will remain key to adding value and attracting good prices. Trade between the US and Africa in 2018 was valued at $41.2-billion.

Mobile Boutique; Samac Engineering Solutions; Siyazenzela Trailers & Truck Bodies and Zikhe. The award for small and medium exports (a new category) was sponsored by the Small Enterprise Development Agency (Seda KZN). One of the event sponsors, Trade & Investment KwaZulu-Natal (TIKZN), is an agency dedicated to promoting the province as an investment destination and to facilitating trade by helping local companies to gain access to international markets. In 2020, 103 export opportunities were created with 20 companies enrolling for the exporter competitiveness programme. This initiative sustained 1 605 jobs, according to the Provincial Government of KwaZulu-Natal. Another awards ceremony, organised by the South African Capital Equipment Export Council (SACEEC) and Specialised Exhibitions Montgomery as part of the Southern African Local Manufacturing Expo, saw Bell Equipment win the “Exporter of the Year” in the large category (over R200-million turnover). Exports to more than 80 countries make up about 40% of the company’s turnover and local content of those exports is at 70%. Bell is best known for its heavy equipment which is primarily used in the mining and construction sectors.

Awards and China Opening up new markets is a priority for local business leaders. The Durban Chamber of Commerce and Industry partners with Transnet Port Terminals ( TPT ) in hosting the annual KwaZulu-Natal (KZN) Exporter of the Year Awards. At the 2019 ceremony, Durban Chamber Deputy President Gladwin Malishe said, “With the global economy in a state of flux and several developed economies becoming more protectionist, KwaZulu-Natal and our emerging exporters need to scout for non-traditional points of entry into the global market, which are more open and have more liberal trade policies and procedures such as China. This is an ideal time to visit a growth market like China if you have export aspirations, hence the theme for our event being Shanghai Nights.” The award winners on that occasion offer a good sample of the strength and variety of the provincial economy. Winners included Imperial Armour (body armour), Sappi (forestry and paper), Sumitomo Rubber (tyres) and the Mediterranean Shipping Company. Finalists came from sectors as diverse as engineering, condiment-making and boat-building. Approximately 220 TEU equivalent containers (20-foot containers) of Sappi products pass through the Port of Durban every day. At the awards evening, the Emerging Expor ters Development Programme was launched, a joint initiative by TPT and the Durban Chamber to develop emerging exporters. The first beneficiaries were Get2Natural Beauty; Gugu

Infrastructure With two of Africa’s biggest ports in Durban and Richards Bay (pictured) and the King Shaka International Airport and associated Dube TradePort, KwaZulu-Natal has superb infrastructure to support trade and export activity. The N3 highway linking Durban with the Highveld and the industrial hub of South Africa is the country’s busiest road. Durban harbour is South Africa’s premier multi-cargo port and is Africa’s busiest, handling in excess of 80-million tons of cargo per annum (StatsSA). The Port of Durban is a key hub in the transport and logistics chain, with 60% of all imports and exports passing through it. The Port of Durban exports a broad range of products, including automotive vehicles. In 2018/19, the year in which South Africa’s total vehicle exports topped 350 000, Durban’s Car

KWAZULU-NATAL BUSINESS 2021/22

SPECIAL FEATURE Terminal boasted a record of putting more than 500 000 fully-built-up units (FBUs) through the port. The figure includes FBUs that are not motor vehicles and includes vehicle imports. Toyota’s popular Fortuner is exported at a rate of about 150 per month. All aspects of the port are expanding or being upgraded. Within the Port of Durban there are a number of specialised facilities. Several projects are underway to increase capacity. Transnet National Ports Authority ( TNPA) and Transnet Port Terminals ( TPT ) are combining to upgrade infrastructure and buy new equipment to improve efficiencies at the Ro-Ro terminal (vehicles and break bulk) and Maydon Wharf (mixed cargo and agriculture) but the biggest project is at the Durban Container Terminal (DCT ). DCT has a capacity of 3.6-million TEUs (twenty-foot equivalent unit) and the current project aims to extend that beyond five-million TEUs. The Brics New Development Bank has approved a loan of $200-million for the DCT expansion project. TNPA states that the multiplier effect in the marine sector creates five jobs for every direct job. A large drydock project created direct jobs for 29 skilled employees. The Port of Richards Bay, 160km to the north-east of Durban and 465km south of the Mozambican capital of Maputo, handles more than 80-million tons of bulk cargo every year. Richards Bay is a deepwater port. Among its 13 berths are terminals that handle dry-bulk ores, minerals and break-bulk cargo. The Richards Bay Coal Terminal (RBCT), with capacity of 91-million tons per year, is South Africa’s primary portal for the export of coal. In 2020, 65 collieries delivered coal to RBCT. The quay of the RBCT is 2.2km long with six berths and four ship-loaders. The 276ha site contains a stockyard that can store 8.2-million tons while the terminal itself has a design capacity of 91-million tons per year. More than 900 ships visit RBCT every year. In 2020, 92% of South African coal went to Asia, with India and Pakistan being the biggest importers. Africa imported less than the previous

Credit: Anton Swanepoel KWAZULU-NATAL BUSINESS 2021/22

SPECIAL FEATURE year and made up a total of 5% of volumes while 3% went to Europe. Among the exporters which use RBCT are Anglo Operations, ARM Coal, Exxaro Coal, Glencore Operations South Africa, Kangra Coal, Koornfontein Mines, Mbokodo, Optimum Coal Terminal, Sasol Mining, South African Coal Mine Holdings, South Dunes Coal Terminal, South32 Coal Holdings (which is selling to Seriti), Tumelo Coal Mines and Umcebo Mining. Several junior miners also have rights. TNPA has approved in principle the construction of a floating dock near the existing Small Craft quay. TNPA will have to create new onshore infrastructure and do some dredging before it can call for tenders from the private sector to build the dock, which would be able to handle large and ultra-large cargo vessels. The authority that runs the ports at Durban and Richards Bay, TNPA, and Transnet Freight Rail (TFR) have been working with the private sector to try to improve efficiencies at both ports. Backlogs at Durban in particular have proved frustrating for exporters. Logistics company OneLogix has opened its own distribution hub in Umlaas because of crowded conditions and slow loading. The other entity involved in the loading and unloading equation, TPT, is investing R2-billion in new equipment to improve coordination between truckers, tax authorities, port staff and ship’s captains. Dube TradePort has facilities devoted to logistics, warehousing and export support. Proximity to the airport is vital and freight volumes are growing.

Standard Bank has launched a product to assist African importers in evaluating and choosing Chinese suppliers. Faced with daunting variety, language and cultural differences, the prospect of having to pay cash upfront to unseen suppliers or limiting supply choices to a small group of previously used suppliers, African importers can use the Africa China Agent Proposition (ACAP) to validate quality while having sight of the logistics process. Standard Bank is using its partnership with shareholder the Industrial and Commercial Bank of China (ICBC) to create the ACAP, which puts importers in touch with agents and is underpinned by a letter of credit. Standard Bank is Africa’s biggest bank and ICBC is the world’s biggest bank. In preparation for AfCFTA, development finance institutions and banks have been developing methods of trading in local currencies, rather than hard currencies like the US dollar. The African Virtual Trade-Diplomacy Platform (AVDP) is a private-sector initiative by more than 20 companies (in partnership with the AU Commission) which will support the AfCFTA by enabling member states to participate effectively and securely. Banking groups such as Citi have been investing heavily in digital platforms related to payments infrastructure. Many African traders already do their banking on hand-held devices and so the market is ready for more innovation in taking digital payments further into the world of trade. Developing reliable cross-border payment platforms will be vital in supporting increased intra-African trade. The European Investment Bank is the investment arm of the European Union and often partners with African institutions. China has a wide range of financial entities which are active across a range of sectors in Africa. These entities include the China Development Bank (CDB), the China International Trade and Investment Corporation (CITIC), China Export and Credit Insurance Corporation (CECIC), China Export Credit Insurance Corporation (Sinosure) and the China Export-Import Bank. ■

Financing Four countries currently account for 41.7% of intra-African trade, according to the Export Credit Insurance Corporation of South Africa (ECIC). The ECIC has invested in the African Export Import Bank to boost intra-continental trade to $250-billion. The South Africa-Africa Trade and Investment Promotion Programme has the same goal. The ECIC provides expor t credit and investment guarantees, stepping in where commercial banks might be risk-averse to support private investment.

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iLembe District is packed with investment opportunities Enterprise iLembe is driving economic development through trade and investment. Enterprise iLembe is an Economic Development Agency of the iLembe District Municipality with a mandate to drive economic development and to promote trade and investment in the region.

a resilient and sustainable economy. The iLembe district is located in KwaZulu-Natal and is made up of four local municipalities, namely KwaDukuza, Maphumulo, Mandeni and Ndwedwe. Being strategically located between the two major South African harbours of Durban and Richards Bay, iLembe District is the highestpriority development corridor in the province of KwaZulu-Natal. The close proximity to the King Shaka International Airport and Dube TradePort also connects the district directly to international markets. These are all major factors in the development of projects that will take the economy of the district to new heights, and the role of Enterprise iLembe is to ensure that the business environment is conducive to investment and business activity. Enterprise iLembe partners with various stakeholders such as Trade and Investment KZN, the iLembe Chamber of Commerce, various

Vision To be a leading economic development agency that enables the iLembe District to be a destination of choice for investment, business and tourism. Mission Working with business, communities and government to drive economic development in the iLembe District to ensure inclusive economic growth and job creation. The philosophy that drives Enterprise iLembe is built on promoting a participatory process where local people from all sectors work together to stimulate local commercial activity, resulting in

King Shaka International Airport KWAZULU-NATAL BUSINESS 2021/22

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investment promotion, business retention and business activities. The establishment of a district Business Incubator Facility is aimed at providing assistance for the start-up and growth stages of entrepreneurs or SMMEs in the district, assisting them with access to technical and businessrelated skills, necessary for the business growth process. It is essentially the one-stop shop for all business-related information, ensuring compliance with all necessary regulations and also facilitating access to funding for SMMEs within the district. ■

Sugarcane fields sector departments as well as the family of local municipalities to position the iLembe District as an investment destination of choice. The agency works with iLembe Chamber of Commerce in a programme called iLembe Business Confidence Index aimed at providing a picture of the business confidence in the iLembe District, as well as an overall business outlook. This biannual research helps stakeholders to draw intelligence for

Contact details Manager: Tourism and Investment Cheryl Peters Physical address: Corner Ballito Drive and Link Road, Ballito, KwaZulu-Natal, North Coast Postal address: PO Box 593, Ballito 4420 Tel: +27 32 946 1256 Email: cheryl@enterpriseilembe.co.za Website: www.enterpriseilembe.co.za

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KEY SECTORS Overviews of the main economic sectors of Kwazulu-Natal Agriculture 26 Foresty and paper 30 Mining 31 Engineering 32 Oil and gas 33 Construction and property 36 Tourism 37 Manufacturing 38 Automotive 39 Education and training 40 Water 44 Energy 45 Banking and financial services 46 Development finance and SMME support 48

The Richards Bay Coal Terminal has the design capacity of 91-million tons of coal per annum. In 2020, 70.2-million tons of coal was exported, mostly to Asia. Shareholders include all of South Africa’s biggest coal-mining companies. Credit: Richards Bay Coal Terminal. Credit: RBCT

OVERVIEW

Agriculture A Value Chain Master Plan promises solutions for the sugar industry.

waZulu-Natal is South Africa’s major sugar-producing province. A start has been made on tackling the many challenges faced by the sugar industry: in 2020 the Sugarcane Value Chain Master Plan 2030 was signed by two national government ministers and various sector participants. Among the steps to be taken include diversifying revenue streams and an agreement by users and retailers to buy more South African sugar. Imports have a devastating impact on the local industry. Two mills have recently closed, the Umzimkulu mill run by Illovo Sugar and Tongaat Hulett’s Darnall mill. With a good crop expected in 2020/21, this will put additional pressure on the country’s remaining 12 mills. An important part of the transformation of the sugar industry involves supporting small-scale farmers. Of the 10 443 farmers who supply Tongaat Hulett, 94% are small-scale farmers. The Illovo SmallScale Grower Cane Development Project used 119 local contractors to develop the fields of 1 630 new growers on 3 000ha. Production sent to the company’s Sezela factory more than doubled and income for the growers is expected to be about R64-million annually. National Treasury and the SA Canegrowers were partners in the project. SA Canegrowers represents 23 866 growers and is responsible for the production of 18.9-million cane tons. A 2019 project, in which five commercial sugarcane farmers donated 10 tons each of seedcane to five small-scale farmers has been a success. Lilian Dube (pictured), was one of the recipients in the Amatikulu region and she has prospered with the addition of sugarcane to the variety of crops on her farm. Neither of the Big Two companies relies exclusively on South African sugar earnings: Tongaat Hulett has a big property portfolio and Illovo draws most of its profit from operations elsewhere in Africa. Diversification is vital for the future of sugar producers and power generation will be an important part of that. The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and can store more than half-a-million tons of sugar. It also has a molasses mixing plant.

Agricultural assets Of KwaZulu-Natal’s 6.5-million hectares of agricultural land, 18% is arable and the balance is suitable for the rearing of livestock. The province’s forests occur mostly in the southern and northern edges of the province. KWAZULU-NATAL BUSINESS 2021/22

SECTOR INSIGHT Commercialisation of goat farming will benefit smallscale farmers. The coastal areas lend themselves to sugar production and fruit, with subtropical fruits doing particularly well in the north. KwaZulu-Natal produces 7% of South Africa’s citrus fruit. The Coastal Farmers Co-operative represents 1 400 farmers. TWK is a R6-billion operation that originated in forestry (as Transvaal Wattlegrowers Cooperative) but which is now a diverse agricultural company with seven operating divisions. It has 19 trade outlets in the province and 21 in Swaziland and Mpumalanga. Beef originates mainly in the Highveld and Midlands areas, with dairy production being undertaken in the Midlands and south. The province produces 18% of South Africa’s milk. KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle, which represents 55% of the provincial beef herd, and their goat herds account for 74% of the province’s stock. The Midlands is also home to some of the country’s finest racehorse stud farms. The area around Camperdown is one of the country’s most important areas for pig farming. Vegetables grow well in most areas, and

Amatikulu small-scale farmer Lilian Dube and SA Canegrowers’ Area Manager Sinenhlanhla Njoko admire Dube’s seedcane plot. The seed was donated by commercial growers in the northern region. Credit: SA Canegrowers. some maize is grown in the north-west. Nuts such as pecan and macadamia thrive. KwaZulu-Natal has two colleges offering higher qualifications in agriculture, Cedara in the Midlands and the Owen Sitole College of Agriculture near Empangeni. Enterprise iLembe is the development arm of the iLembe District Municipality and is looking for investors to further develop an agro-processing hub near the King Shaka International Airport and Dube TradePort. So-called superfoods have potential to grow the agricultural sector via greatly increased exports: these include avocados, pecans and dates. Another possibility is macadamia nuts (already a thriving sector in other parts of the country) and in new areas such as the farming of rabbits. Among the new lines of agricultural produce being investigated is cannabis. The provincial government initiated a feasibility study to identify opportunities in the production of cannabis and downstream beneficiation. A Cannabis Investor Protocol has been developed and a dedicated Cannabis Unit has been established within the Moses Kotane Institute to assist emerging cultivators and entrepreneurs with infrastructure assistance, funding and licensing. Another initiative of the Department of Agriculture and Rural Development (DARD) is to promote the commercialisation of goat farming. In 2020/21, DARD assisted farmers to plant 10 658ha for food security and R30-million has been set aside for the establishment of five large nurseries to produce seedlings and fruit trees. The

programme will employ 290 agricultural graduates. The National Department of Rural Development and Land Reform (DRDLR) has launched an Agri-parks programme to support small-scale farmers and to boost other businesses related to agriculture such as abattoirs and transport operators. KwaZuluNatal is one of four provinces where pilot projects have been carried out. The plan is to have an Agri-park in each of South Africa’s 44 district municipalities with farmers owning at least 70% of the venture. There are three components to the fully realised Agri-park concept: •

•

ONLINE RESOURCES Fresh Produce Exporters Forum: www.fpef.co.za KwaZulu-Natal Agricultural Union: www.kwanalu.co.za Milk Producers Organisation: www.mpo.co.za South African Canegrowers Association: www.sacanegrowers.co.za South African Sugar Association: www.sasa.org.za

•

Farmer Production Support Unit: links farmer with markets, collection and short-term storage, local processing and the introduction of mechanisation. Agri-hub: equipment-hire, processing, packaging, logistics and training. Rural Urban Market Centre: contract-based links to local and international markets, long-term storage and market intelligence. ■

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Producing crops that feed our country’s growth

Standard Bank supports the full agribusiness value chain.

A R16-billion industry, it is a large employer with 85 000 direct jobs and an estimated 350 000 jobs indirectly attributable to sugar production. KwaZulu-Natal is responsible for nearly 80% of the country’s sugar production, with 20 000 growers producing 1.68-million tons of sugar annually. Standard Bank provides banking services and finance to the entire value chain of this vital industry, from input suppliers such as cooperatives and chemical companies to contractors and transporters, as well as specialist services and the growers and millers. We consider all types of agricultural finance, from tailor-made long-term products for purchases of fixtures and property, mid-term asset finance as well as looking after short-term working capital needs for operational costs and seasonal expenses. Transactional banking, hire purchase, credit and fleet management are also vital for cane hauliers.

Agribusiness offering While many sectors in South Africa struggled in 2020 because of Covid-19 restrictions, agriculture enjoyed a strong year. According to Statistics South Africa the agriculture, forestry and fisheries sector’s Q3 2020 seasonally adjusted and annualised growth rate was 18.5% and was valued at R79.4-billion. While agriculture remains the biggest contributor to South Africa’s GDP, it is easy to forget its importance and the impact it has on our lives – producing crops that are crucial to our country’s growth. That’s why Standard Bank is committed to providing farmers with a full banking suite. Agriculture is a specialised sector with more than 30 sub-industries, and a vast field of knowledge is required to understand each subsector and how each of these industries’ cycles are integrated. With 35 in-field agents located in all provinces who are experts in those specific geographical areas, we are able to assist with cash flow and financial planning. Standard Bank continues to prioritise providing a world-class service, knowledge and expertise. We believe that when a farmer wins, we all win. ■

Image by Jan Kopřiva on Unsplash

n KwaZulu-Natal sugar is like gold. Large-scale sugar production has always played an important role in KwaZulu-Natal’s history and the sugar industry is a significant part of South Africa’s economy given its agricultural and industrial investment and significance as a foreign exchange earner.

OUR FARMERS ARE A REAL TREAT. Their hard work and dedication sweeten the deal. That’s why Standard Bank supports farmers, offering a full banking suite that includes everything from agricultural production loans to crop insurance. Find out more at standardbank.co.za/agribusiness

29 Standard Bank is an authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). GMS-17909 02/21

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OVERVIEW

Forestry and paper A beekeeping project has reduced forest fires. SECTOR INSIGHT Nampak produces crêpe paper at Verulam.

Credit: Sappi

ince Sappi started allowing an organisation to place hives in its forests five years ago, the concept has grown into a fully-fledged beekeeping programme that sustains families – and reduces uncontrolled fires. Prior to inviting African Honey Bee onto its properties, Sappi often had to deal with fires caused by people trying to find honey by smoking out hives. A formal training programme has created entrepreneurs who are now reaping the rewards. In 2017, African Honey Bee purchased five tons of honey from 120 beekeepers. This grew to 10 tons from 500 beekeepers in 2019 and training has been offered in vegetable and poultry farming. The honey is packaged and sold throughout South Africa as Sizana traceable honey. Sappi has 19 production facilities on three continents (of which five are in Southern Africa) and 12 800 employees in over 35 countries. Sappi’s Stanger Mill is situated close to sugar fields from which it takes bagasse (dry sugar cane pulp) for use in its production processes. Typek office paper is made at this mill, which has the capacity to produce 80 000 tons of paper and 30 000 tons of tissue. At the company’s Tugela Mill up to 200 000 tons per annum of containerboard (corrugating medium) can be manufactured from recycled and virgin fibre. The giant Sappi Saiccor mill 50km south of Durban is the world’s biggest manufacturer of dissolving wood pulp. The Mondi Group has grown into an international behemoth with 26 000 employees and operations in more than 30 countries. In 2019 Mondi announced that its primary listing would be in London and the JSE will carry the company’s secondary listing. Mondi’s Merebank Mill produces a range of office paper products including the well-known brand, Mondi Rotatrim. Uncoated woodfree reels

ONLINE RESOURCES Forestry South Africa: www.forestry.co.za Sizana honey: www.peels.co.za South African Institute of Forestry: www.saif.org.za Technical Association of the Pulp and Paper Industry of South Africa: www.tappi.org

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are manufactured for the South African and Sub-Saharan African markets. At Richards Bay, eucalyptus fibre is used to make a premier-grade bleached hardwood pulp and a white top kraft linerboard is also produced. Major investments at Richards Bay have improved air quality, reduced water consumption and reduced the amount of solid waste. Nampak produces crêpe paper at Verulam and Rafalo produces tissue paper. SA Paper Mills is another paper producer. Mpact’s upgrade of its Felixton mill has increased capacity and improved efficiency. The project cost R765-million and takes overall production up to 215 000 tons and a lightweight containerboard option has been included in the product lines. Mpact has plastics and paper operations, with the paper section divided into three divisions: paper manufacturing, corrugated and converted paper products and recycling efficiency. The project cost R765-million and takes overall production up to 215 000 tons and a lightweight containerboard option has been included in the product lines. Mpact has plastics and paper operations, with the paper section divided into three divisions: paper manufacturing, corrugated and converted paper products and recycling. ■

OVERVIEW

Mining Coal mining and processing has resumed.

outh32’s Hillside aluminium smelter at Richards Bay produced a record amount of saleable product in the year to June 2020, despite variable energy supply. The Covid pandemic in 2020 added to the ongoing problem of reliable electricity supply, which is a critical issue for a big energy user like a smelter. The crisis affecting South Africa’s power utility, Eskom, is causing South32, the Australian owner of the Hillside aluminium smelter to rethink their operations there. In 2019 about 400 workers took early retirement or voluntary retrenchment packages. In early 2021, a new contract with Eskom was still under discussion. Most of the product from the smelter (high-quality primary aluminium ingot) is exported but some liquid metal form is sent to Isizinda Aluminium which supplies Hulamin, a company that has had a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major aluminium rolling operator in the region and it makes rolled products and extrusions. Other processing facilities in the province include the steel plant owned by Arcelor Mittal in Newcastle and Safa Steel’s metalcoating factory in Cato Manor. Coal mining resumed in northern KwaZulu-Natal at the start of 2021, after an enforced period under care and maintenance because of the pandemic. Three shafts owned by Zululand Anthracite Colliery (ZAC) are currently functioning and a fourth is expected to come on stream in 2022, when the mine should be able to produce onemillion tons of coal. Some of the coalfields of the province have been revived. Petmin’s Somkhele Anthracite Mine, north of Richards Bay, has one of the biggest reserves of open-pit anthracite in South Africa, with measured and indicated reserves of more than 51-million tons across its four areas. RBM mines the minerals sands of the northern KwaZulu-Natal coast and operates out of Richards Bay. The main products of the RBM mine are zircon, rutile, titania slag, titanium dioxide feedstock and high-purity iron. Luxembourg-based Traxys Africa, which has chrome mines in

ONLINE RESOURCES Geological Sciences, University of KZN: www.geology.ukzn.ac.za Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za

SECTOR INSIGHT KZN Sands offers learnerships.

Credit: South32 Mpumalanga and Limpopo provinces, runs a high-carbon ferrochrome plant at Richards Bay. The KZN Sands mineral sands operation comprises a central processing complex in Empangeni and the Fairbreeze Mine. Expenditure over several years is expected to rise to R5-billion as it expands. Tronox, which is listed on the New York Stock Exchange, is the major shareholder in KZN Sands. KZN Sands offers learnerships at Mtunzini and Empangeni. Finnish company Metso is spending about R53-million on building a second furnace at its Isithebe foundry in the iLembe District Municipality. This is in response to increased demand for large crusher wear parts. The KwaZulu-Natal foundry is one of five foundries the company runs on four continents. ■

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OVERVIEW

Engineering A respected university unit is expanding its brief. SECTOR INSIGHT The steel industry is under pressure.

Credit: WASH Centre

he Pollution Research Group (PRG) at the University of KwaZulu-Natal (UKZN) has a new name and an extended brief. It has been re-established as the Water, Sanitation and Hygiene Research and Development Centre ( WASH R&D Centre). The unit (pictured) continues to fall under Chemical Engineering, where 34 staff contribute to lecture modules in a variety of fields but which now go far beyond the original brief of water in industry. Having seen a total of 22 PhD and 93 Masters’ students graduate under the supervision of unit staff, the WASH R&D Centre has expanded its research scope to include agricultural economics, crop and soil sciences, microbiology, mechanical and civil engineering and development studies. The Bill & Melinda Gates Foundation is among the unit’s funders. In addition to Chemical Engineering, the School of Engineering offers a range of degree options in nine areas of specialisation including Bioresources, Electronic and Computer Engineering and Land Surveying. All of the province’s biggest industries require sophisticated engineering skills: aluminium smelters in Richards Bay and steel works in Newcastle, Richards Bay and Cato Ridge. There are also chemicals and plastics production plants, and large automotive works. Marine repair and engineering are important, with established companies such as EBH South Africa offering comprehensive services at the ports of Durban and Richards Bay. Dormac, which is headquartered in the Bayhead area of the Port of Durban, is best known for its marine engineering but it

ONLINE RESOURCES Consulting Engineers South Africa: www.cesa.co.za South African Wire Association: www.sawa.co.za Southern African Institute for Industrial Engineering: www.saiie.co.za Wash R&D Centre: www.washcentre.ukzn.ac.za

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offers specialised services to the sugar industry and provides machinery for industrial giants like Toyota and Defy. One of the largest independent wire manufacturers in the country, Hendok Group, is steadily increasing its exports to other African countries. With more than 1 000 employees at the factory in the Phoenix Industrial Park in Durban, the company makes a wide variety of wires and is the country’s biggest producer of nails. ArcelorMittalSA is Africa’s biggest steelmaker and it has a plant at Newcastle, but tough times in the steel business have meant that the company has shut down some of its facilities. The first to be shuttered was Saldanha in the Western Cape and an analysis of the profitability of other centres is underway. A big project that has created a lot of work for engineers is the multi-year Western Aqueduct project to bring fresh water to greater Durban. The Transnet Engineering (TE) plant in the Port of Durban houses six business units and has 3 555 employees. The Port Equipment Maintenance unit and units specialising in wheels and locomotive overhaul are other entities. ■

OVERVIEW

Oil and gas A new tanker will improve port services.

frican Marine Solutions has acquired a new tanker to deliver oil to ships in the Port of Durban. The vessel will deliver high and low sulphur oil and fuel oil in Africa’s busiest port as part of a contract which the company has signed with Shell Downstream South Africa. The Port of Richards Bay is also investing in new infrastructure. The supply of liquid petroleum gas (LPG) is set to be made much easier and more reliable with the erection of the 22 600-ton Mounded LPG Facility at Richards Bay. Bidvest Tank Terminals has constructed the R1-billion storage facility for Petredec, which trades, transports and distributes LPG and other commodities. South Africa’s annual consumption of LPG, currently at 400 000 tons, is expected to rise to 600 000 tons. KwaZulu-Natal is home to two major oil refineries and is the first link in the pipeline chain that links Gauteng province, the industrial heartland of South Africa, with vital fuels. The Port of Durban handles 80% of South Africa’s fuel imports. If a private partner can be found, an LNG plant will produce 2 000MW at Richards Bay. This forms part of national government’s allocation of 3 126MW to natural gas in its medium-term energy policy to 2030. The National Department of Mineral Resources and Energy (DMRE) allocated one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme to Richards Bay. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub. The fact that neighbouring Mozambique has significant offshore deposits is a factor in this plan. To produce its allocation of 2 000MW, the plant would have to use a million tons a year of LNG.

ONLINE RESOURCES National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency SA: www.petroleumagencysa.com South African National Energy Association: www.sanea.org.za South African Petroleum Industry Association: www.sapia.co.za

SECTOR INSIGHT Two oil refineries are located in KwaZulu-Natal.

Credit: African Marine Solutions Eni, one of the world’s biggest energy companies, has an agreement with Sasol Petroleum International to explore for hydrocarbons off the coast of KwaZulu-Natal. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas exploration rights in KwaZulu-Natal to NT Energy Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. The Petroleum Agency SA is an agency of the National Department of Energy. Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP). Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines is said to reduce the number of fuel tankers on South African roads by about 60%. ■

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Gas discoveries are a boost to the Oceans Economy KwaZulu-Natal stands to benefit from significant finds off the east coast of Africa

waZulu-Natal’s long coastline already reaps enormous benefits for the economy of the province through its sophisticated port infrastructure, trade opportunities and fishing opportunities but recent gas discoveries off the coasts of Mozambique and South Africa stand to make the benefits of the Oceans Economy very real for the coastal province’s residents. The Oceans Economy is part of the nationallydriven Operation Phakisa, a focused, goaloriented jump-starting of a specific economic sector. Operation Phakisa intends creating a million jobs by 2033 and injecting R177-billion into national GDP. Major steps have been taken in the creation of a South African gas market with two major discoveries off the South African coast near Mossel Bay. Says the CEO of Petroleum Agency SA, Dr Phindile Masangane, “The recent discovery by Total and its JV partners in Block 11B/12B (Brulpadda) is the first giant step in that direction.” O d f j e l l ’s D e e p s e a S t a v a n g e r s e m i submersible oil rig relocated from Norway to South Africa in June 2020 to start exploratory drilling at the Brulpadda site. Having found good quantities of light oil and gas condensate at

Brulpadda, the team returned in October to drill at another site called Luiperd – and found even more gas reserves. Analysts believe that these two finds could be game-changers for the South African economy as gas currently occupies a tiny part of the country’s energy mix. Early reports suggest that Luiperd might have gas reserves twice as plentiful as the earlier discovery, although they are similar in terms of the liquids’ gas mix. The exploration drilling is in deep waters similar to where the gigantic Mozambique Rovuma Basin gas discoveries were made in 2010. The drilling campaign has long-term benefits to South Africa which include introducing frontier deep-water exploration drilling, building confidence and potentially shifting petroleum exploration activities to private international oil companies (IOCs), derisking deep-water acreage which is believed to be prospective for large oil and gas resources. There is potential for gas to be sent by undersea pipeline to Mossel Bay and to suppor t the countr y ’s switch from coal. “Further development of the discovery is highly dependent on the success of this further drilling,” comments Dr Masangane. “Possible development could see condensate being piped to the PetroSA facility in Mossel Bay,” she adds, “but these decisions are ultimately up to the operator, Total and its partners.” Africa Energy holds a 4.9% effective interest in the Exploration Right for Block 11B/12B. The Company owns 49% of the shares in Main Street 1549 Proprietary Limited, which has a 10% participating interest in the block. Total as operator holds a 45% participating interest in Block 11B/12B, while Qatar Petroleum (25%) and CNR (20%) are the other participants.

FOCUS

Petroleum Agency SA: promoting and regulating exploration and production. Petroleum Agency SA evaluates, promotes and regulates oil and gas exploration and production activities in South Africa and archives all relevant geotechnical data. The Agency acts as an advisor to the government and carries out special projects at the request of the Minister of Mineral Resources and Energy. South Africa’s energy mix is changing to include more gas through impor ting liquefied natural gas (LNG), using shale gas if reserves prove commercial, and developing infrastructure for the import of LNG. Petroleum Agency SA plays an important role in developing South Africa’s gas market by attracting qualified and competent companies to explore for gas. Another major focus is increasing the inclusion of historically disadvantaged South Africanowned entities in the upstream industry. Currently, natural gas supplies just 3% of South Africa’s primary energy. A significant challenge facing the development of a major gas market is the dominance of coal. Opportunities for gas lie in the realisation of South Africa’s National Development Plan (NDP) and the Integrated Resource Plan (IRP).

As custodian, Petroleum Agenc y SA ensures that companies applying for gas rights are vetted to make sure they are financially qualified and technically capable, as well having a good environmental track record. Oil and gas exploration requires enormous capital outlay and can represent a risk to workers, communities and the environment. Applicants are therefore required to prove their capabilities and safety record and must carry insurance for environmental rehabilitation. ■

Contact details Telephone: +27 21 938 3500 Email: plu@petroleumagencysa.com Website: www.petroleumagency.com

PASA’S NEW CEO HAS A BACKGROUND IN ENERGY POLICY AND STRATEGY Dr Phindile Masangane was appointed as the CEO of the South African upstream oil and gas regulatory authority, Petroleum Agency South Africa, in May 2020. Before then, Dr Masangane was an executive at the South African state-owned energy company, CEF (SOC) Ltd, which is the holding company of PASA. Dr Masangane was responsible for clean, renewable and alternative energy projects. In partnership with private companies, she led the development of energy projects including the deal structuring, project economic modelling and financing on behalf of the CEF Group of Companies. Her responsibilities also included supporting the national government in developing energy policy and regulations for diversifying the country’s energy mix.

In 2019, Dr Masangane was Head of Strategy for the CEF Group of Companies where she led the development of the group’s long-term strategic plan, Vision 2040+ as well as the group’s gas strategy. From 2010 to 2013, Dr Masangane was a partner and director at KPMG, responsible for the Energy Advisory Division. She successfully led the capital raising of $2-billion for hydro and coal power plants expansion programmes of the Zimbabwean power utility, ZESA/ZPC. An alumnus of three universities, Dr Masangane has a BSc (mathematics and chemistry) from the University of Swaziland, a PhD in Chemistry from Imperial College, London and an MBA from the University of the Witwatersrand. ■

OVERVIEW

Construction and property The north coast continues to attract high prices. SECTOR INSIGHT Durban has an inner-city revival plan.

Credit: Collins Residential

he Dolphin Coast continues to attract high-end investors. Seaton, The Bay, in Sheffield Beach Estate, north of Ballito and Simbithi Eco-Estate, distinguishes itself from its neighbours by offering direct access to the beach. Collins Residential reported R179-million in sales in two months in late 2020, for the first two parts of the development. Owners are expected to take up residence early in 2022. Further south, Zimbali is another estate holding its own in terms of value, as the Sunday Times reported in September 2020. Seeff Zimbali sold two properties for a combined R44.5-million and Pam Golding Properties were selling plots at Signature Sibaya for prices ranging from R5-million to R12-million. A programme that aims to make Durban’s inner city “Africa’s leading, most vibrant, liveable, walkable City Centre” could provide some impetus to the construction sector. The Inner City Local Area Plan (LAP) for Durban has been developed for the Strategic Planning unit of the eThekwini Municipality by a joint venture called IPPU. A major milestone was reached in November 2019 when the beachfront promenade extension reached the harbour. This means that residents anywhere in the city can now step onto the promenade, from the harbour in the south to Blue Lagoon in the north. The project began in early 2018 and cost R400-million.

ONLINE RESOURCES Construction Industry Development Board: www.cidb.org.za Master Builders Association KwaZulu-Natal: www.mba-kzn.co.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Valuers: www.saiv.org.za

KWAZULU-NATAL BUSINESS 2021/22

According to the organisers of the 2019 KZN Construction Expo, infrastructure will attract more than R200-billion in investment over seven years and R35-billion will be spent over 15 years at the Port Waterfront development. The King Shaka International Airport and Dube TradePort are also attracting property investments. Two new industrial parks are being developed: Cornubia is part of a larger project near Umhlanga and Clairwood in Durban South will offer more than 300 000m² of A-grade industrial space. Tongaat Hulett Developments ( THD) has for some years been rolling out a series of developments on land it owns north of Durban and it has launched the nTshongweni Urban Development on either side of the busy N3 highway west of the city. KwaZulu-Natal has a number of brick companies and four cement factories. Three of these are run by NPC at Simuma, Durban and Newcastle, and the company has a further six sites for concrete and two for aggregate. NPC is part of the Intercement group. Lafarge has several aggregate quarries and eight Readymix plants around the province. The company’s grinding operation in Richards Bay closed in 2017. ■

OVERVIEW

Tourism Dedicated funds are promoting transformation. SECTOR INSIGHT KwaZulu-Natal expected more than R1-billion from events in 2020.

Credit: Kevin Folk on Unsplash

he Tourism Transformation Fund, created by the National Department of Tourism and the National Empowerment Fund (NEF), has disbursed several grants to KwaZulu-Natal operations. These include the Rhino Ridge Lodge in Hluhluwe and the Jozini Tiger Lodge, located on Lake Jozini with views of the Lebombo Mountains. The latter lodge is a community-owned initiative which employs 96 local people, mostly women. The provincial government has invested in maintenance and upgrades of facilities such as the caves at Ngodini and Ndumo and the Bhanga Nek Campsite. There are plans to upgrade the Mandela Capture Site near Howick. The combined contribution of retail and tourism to provincial GDP is 14%. The province anticipated income injection from business events to be hosted in 2020/2021 to be about R1.2-billion. All of that fell away because of the global Covid-19 epidemic. The meetings, incentives, conferences and exhibitions (MICE) sector is likely to be the hardest hit by the lockdowns and it is difficult to anticipate when it will recover.

ONLINE RESOURCES Durban International Convention Centre: www.icc.co.za Ezemvelo KZN Wildlife: www.kznwildlife.com Moses Mabhida Stadium: www.mmstadium.com Tourism KwaZulu-Natal: www.zulu.org.za

Similarly, the investment of R220-million into the construction of a cruise terminal is unlikely to see a return for some time. Adventures don’t come more hair-raising than throwing yourself into the void above a sports stadium, but that’s what thousands of visitors to the Moses Mabhida Stadium have been doing for a decade. The SkyCar, a funicular trip over the top of the roof and bungy-jumping are popular, as is the “Adventure Walk” on the south side of the stadium. The 56 000-capacity stadium is home to a professional soccer team and forms part of a sporting precinct that includes the province’s professional rugby franchise, the Kings Park Stadium, and has greatly increased KwaZulu-Natal’s ability to host big events such as the Fact Durban Rocks and the Monster Jam. The upgrading of the Point area between the beach and the Port of Durban has resulted in major investments. The Docklands Hotel at the Durban Waterfront is a fourstar Signature development that cost about R100-million to develop. ■

KWAZULU-NATAL BUSINESS 2021/22

OVERVIEW

Manufacturing Cellphones are now made in KwaZulu-Natal.

he Mara Group has invested more than R1-billion in a factory to manufacture cellphones at the Dube TradePort which is linked to the King Shaka International Airport. More than 300 permanent jobs will be created. Dube TradePort attracted R7-billion in private and public sector investment between 2012 and 2019 and, with its ideal position for logistics operations, is expected to attract much more. The province’s other Special Economic Zone (SEZ), the Richards Bay Industrial Development Zone (RBIDZ), has attracted a further R7-billion through four recent investments: Ubuhle Towels is a towel manufacturer; Elegant Afro Line makes chemicals and Wilmar SA is a manufacturer of edible oils. Nyanza Light Metal is investing R4.5-billion in the production of titanium dioxide pigments. A new plant to make washing machines has created 75 jobs at the Durban plant of white-goods manufacturer Defy. The R121-million investment is part of a R1.2-billion investment programme which Arçelik Global, the Turkish company, has been following since it acquired Defy. The company has another plant in KwaZulu-Natal at Ezakheni (near Ladysmith) and at East London in the Eastern Cape. Cipla, the Indian manufacturer of generic drugs, is building a new facility at Dube TradePort to complement its existing factory in Durban. LG Electronics South Africa has opened a R21-million factory and distribution centre in Cornubia, north of Durban. Expansion of production normally heralds an uptick in the economy. Unfortunately, the fact that more aluminium products are going to be made by Hulamin’s extrusion facility in Pietermaritzburg reflects the fact that the company has closed one of its factories in another province. The company believes that its restructuring is working well, and its beverage business is thriving. Hulamin also makes rolled products at Edendale, Pietermaritzburg and Camps Drift. The manufacturing sector contributes 17.7% to the provincial Gross Domestic Product (GDP) of KwaZulu-Natal. The strongest export sectors are base-metals (32% including aluminium), mineral products such as ores, vehicles and chemical products.

ONLINE RESOURCES Aluminium Federation of South Africa: www.afsa.org.za Chemical and Allied Industries’ Association: www.caia.co.za Enterprise iLembe: www.enterpriseilembe.org.za Plastics SA: www.plasticsinfo.co.za

KWAZULU-NATAL BUSINESS 2021/22

SECTOR INSIGHT Richards Bay Industrial Development Zone is set to receive R7-billion in investments.

Credit: Hulamin Rolled Products New opportunities in the Blue Economy (ship-building and maintenance, oil-rig repair and servicing) and the Green Economy (solar panel manufacture, solar, biogas and wind energy plant construction, management and maintenance, heating and cooling devices) are set to grow in KwaZulu-Natal with the allocation of geographical hubs to support these sectors, and the introduction of policies to make them competitive. Two large oil refineries and a sophisticated sugar milling and refining industry underpin provincial chemical manufacturing. The chemicals and petrochemicals subsector makes up 17% of the manufacturing output of KwaZulu-Natal, with industrial chemicals accounting for nearly a third. Steel and aluminium are other heavy manufacturing products. Newcastle is a chemical manufacturing hub. ■

OVERVIEW

Automotive Stanger will host a new battery factory. SECTOR INSIGHT Toyota is to start producing a sports-utility vehicle in 2021. Credit: Toyota

ore than 3 000 jobs will be created by battery manufacturer Metair as it responds to the winning of a big contract from Ford Motor Company South Africa. Stanger in northern KwaZulu-Natal will be the site of a new factory and a further investment in logistics will take place in Gauteng. KwaZulu-Natal has a substantial automotive components sector which includes large manufacturers such as GUD Filters. Thirtynine companies are currently members of the Durban Automotive Cluster which is funded by the municipality. Together, these firms have about 17 000 employees. In line with the policy of developing Industrial Economic Hubs, the Durban Automotive Supplier Park is being built at Illovo, south of Durban and near to the Toyota manufacturing plant. The Dube TradePort Corporation will manage the project, which covers 1 013ha. Other partners are the eThekwini Municipality, Toyota and the provincial government. Toyota’s plant, just a few kilometres south of the harbour at Prospecton, has received a R2.4-billion investment to produce a new passenger vehicle. The Corolla Cross (pictured) will start production in the final quarter of 2021. A sports-utility vehicle, the Cross will also be available as a hybrid. Toyota sells about a quarter of the vehicles sold in South Africa, and accounts for the same proportion of export volumes. The company’s total investment of R4.2-billion between 2019 and 2021 includes other manufacturing projects and a huge increase in warehousing capabilities. The other large-scale original equipment manufacturer in the province is Bell Equipment. Between the Toyota plant and the

ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za Durban Automotive Cluster: www.dbnautocluster.org.za National Association of Automotive Component and Allied Manufacturers (NAACAM): www.naacam.co.za

Richards Bay facility of heavyequipment manufacturer Bell Equipment, upwards of 11 000 people are employed. Another manufacturer of earthmoving equipment can be found at Port Shepstone on the south coast. Dezzi is part of the Desmond Group of companies that was founded in 1973 and now has 18 offices and branches. The Dezzi CMI backhoe loader is a popular part of the company’s range. I n 2018 AIH Logistics started assembling Mahindra and Bolero bakkies from kits imported from India on a site at the Dube TradePort. The 5 000m² plant is owned by Automotive Investment Holdings (AIH), which formed AIH Logistics specifically to deal with the Mahindra contract. The intention is to make 2 500 bakkies per year, with an option to expand production to 4 000 and to increase sales of bakkies in the South African market. The Mathe Group’s tyre recycling plant at Hammarsdale has quickly increased capacity to 150 000 used truck tyres per year and intends going past 200 000 soon. Other applications include modified bitumen and as a component of artificial grass. ■

KWAZULU-NATAL BUSINESS 2021/22

OVERVIEW

Education and training An ambitious scheme aims to prepare young people for the world of work. SECTOR INSIGHT A skills audit of municipal officials is underway.

Universities

The AFDA campus in Durban caters for film, television and arts students. Credit: AFDA

he Sukuma 100 000 programme was launched in 2020 by the Provincial Government of KwaZulu-Natal with the goal of helping young people make the transition from an educational environment into the world of work. With the assistance of the private sector, the Youth Directorate in the Office of the Premier wants 100 000 young people to benefit every year from in-service training, apprenticeships and internships. State-owned entities and government departments will also participate in the programme, which is scheduled to last five years. In another initiative related to competencies, a skills audit is to be conducted among senior officials across the province. The audit began in municipalities and will be extended to provincial departments and agencies of the province in due course. KwaZulu-Natal has nine Technical and Vocational Education and Training (TVET) Colleges with a total enrolment of about 80 000. Coastal KZN TVET College gives students practical experience through facilities such as the Nongalo Industrial Park. The college hosts the Samsung Engineering Academy, a Tooling Centre of Excellence and a manufacturing plant for sanitary towels. The college has several sites on the South Coast and caters for 15 400 students. Majuba TVET College is a Centre of Specialisation for boilermaking. The Mnambithi TVET College is located in the Battlefields Route tourism area and offers National Diploma courses in tourism, among other qualifications. A satellite campus operates at Estcourt. KWAZULU-NATAL BUSINESS 2021/22

There are two universities and two universities of technology in KwaZulu-Natal, and the national distance university, the University of South Africa (Unisa), has a presence in five locations. USB Executive Development offers business courses for executives. UKZN has close to 40 000 students studying on five campuses in two cities. Greater Durban hosts Howard College, Berea (environment, engineering, law, humanities) and the Nelson Mandela School of Medicine at Congella. The UKZN administration and the Graduate School of Business are based at Westville (also science, engineering: and health) whereas the Edgewood, Pinetown, campus focusses on and education. The Pietermaritzburg campus offers a broad academic programme but its specialities are fine art, theology and agriculture. UKZN also hosts the National Research Foundation. The Durban University of Technology (DUT) has six faculties operating in seven campuses in Durban and in the Midlands. DUT is well known for its outstanding graphic-design school and offers one of only two chiropractic programmes in South Africa.

OVERVIEW

The University of Zululand offers diploma and degree courses on two campuses at Empangeni and Richards Bay. Several provincial government departments make tertiary bursaries available to qualifying students, including Agriculture and Rural Development, Human Settlements, Public Works, Transport and the Treasury. The National Student Financial Aid Scheme (NSFAS) supports 26 public universities across the country in advancing payment of registration fees for poor students. The private sector also actively supports education through bursaries. A crowdfunding platform set up by Standard Bank, the Feenix Trust, raised more than R35-million in three years to support more than 1 000 students. The bank’s Ikusasa Student Financial Aid Programme (ISFAP) provides bursaries for students from families earning less than R600 000 per annum.

Schools KwaZulu-Natal has 2.8-million school pupils, many of whom are in rural areas. With 30% of South Africa’s pupils in its schools, the province’s results have a big bearing on how the nation fares in annual examinations. There is now near universal access to primary and secondary schooling and a new drive to enrol pre-school children in Grade R has achieved a 70% success rate. The province has 1 689 early childhood development centres. Transport is provided to 350 schools, covering 59 000 pupils and 2 400 bicycles have been made available under the Shovakalula programme. T h e A n t o n Le m b e d e M a t h e m a t i c s , S c i e n c e s a n d Technology Academy in La Mercy north of Durban welcomed its first Grade 8 pupils in 2021. Enrolment is expected to reach 600 for the school, which caters to grades 8 to 12. The long-planned project cost R255-million and is part of a wider provincial programme that includes a Special School for Autism and two Schools of Excellence scheduled to be started

ONLINE RESOURCES Council of Higher Education: www.che.ac.za Independent Schools Association of Southern Africa: www.isasa.org KwaZulu-Natal Department of Education: www.kzneducation.gov.za National Research Foundation: www.nrf.ac.za National Skills Authority: www.nationalskillsauthority.org.za

in 2021, for Agriculture in Umgungundlovu and Maritime studies in Umlazi. A primary school in the Harr y Gwala District was the site of the launch of an e - l e a r n i n g i n f r a s t r u c t u re programme that is intended to be rolled out to rural areas throughout the province. Digital access will allow pupils in remote areas to be connected to the best teachers in the province. The unbundling from the successful Curro group of a separate tertiary entity which listed on the JSE as Stadio Holdings is a good indicator of the growth of the private sector in education. Stadio currently has three institutions: Southern Business School, AFDA (the School for the Creative Economy) and the Embury Institute for Higher Education which has a campus in Musgrave, Durban. There are seven schools in KwaZulu-Natal operating under Curro brands. Advtech, the other big private company in the sector, already has 27 tertiary c a m p u s e s n a t i o n a l l y, i n addition to its 78 schools operating under a variety of labels. Advtech operates 10 educational sites in K w a Zu l u - N a t a l, i n c l u d i n g schools such as Crawford and Trinity House, a chefs school (Cap sicu m) , t hree Var sit y Colleges and the D esign School for Southern Africa. ■

KWAZULU-NATAL BUSINESS 2021/22

REALISING DREAMS THROUGH QUALITY EDUCATION Standard Bank’s commitment to education in South Africa

Standard Bank invests in improved educational outcomes and skills development in multiple ways. We prioritise education in our corporate social investment (CSI) programmes and invest in work readiness programmes through our internal learnership and graduate programmes. We work with partners in government and the corporate sector to address the challenge of affordable and accessible student finance.

Feenix crowdfunding Standard Bank South Africa launched Feenix Trust in 2017 to make tertiary education more accessible for economically disadvantaged students. In its first three years, Feenix raised over R35-million, providing support for over 1 000 students. The platform enables university students to create profiles and request donations toward their education journey and enables individuals and businesses to take meaningful action to solve social problems. To qualify, students need to be registered at a South African public university and have an annual household income of below R600 000. Academic achievement is not a criterion.

ECD and Foundation Phase In 2019 we developed a refreshed CSI strategy, which focuses specifically on Early Childhood Development (ECD) and Foundation Phase education.

Bursary Programmes In South Africa, the Ikusasa Student Financial Aid Programme (ISFAP) is part of the effort to solve the funding challenge faced by “missing middle” students. The programme funds the tertiary studies of students from households that earn up to R600 000 per year.

Extensive research demonstrates that developmental stimulation during the early years of childhood are critical to future intellectual, emotional and physical wellbeing. In 2020, in the wake of the Covid-19 pandemic, we supported our existing ECD partners and we worked closely with NGO partners identified by the Department of Basic Education.

ISFAP focuses on students studying toward jobs in high-demand sectors, scarce skills, and professional degrees. It covers the full cost of study, together with “wrap-around support”, which includes additional academic, social and psychological support such as mentoring and life-skills training. ■

Image by Ben White on Unsplash

he power of education to drive change in South Africa remains undeniable. Unfortunately, many in our country, because of their personal circumstances still struggle to access a quality education. Standard Bank takes an active role in helping these young people realise their dreams through financial support and training initiatives. We believe that all South Africans deserve a quality education.

CONGRATS TO THE CLASS OF 2020 The work is done and the results are in – now it’s time to build the future you want.

After waiting so long to find out how you did in the exams, it’s nice to know that it only takes a few minutes to secure your future with a Student Loan. Drop the stress and start the dream. Apply online today at standardbank.co.za to find out if you qualify, and access affordable repayments and low interest rates*.

#LetsPush *Ts&Cs apply.

Standard Bank is an authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). GMS-17909 02/21

OVERVIEW

Water Waste-water works are being upgraded.

new tender was issued in 2020 for the completion of a 35-megalitre-per-day upgrade of the Dar vill Waste-Water Works. The facility receives and treats both domestic and industrial waste-water from the city of Pietermaritzburg. A provincial Water Intervention Plan is being rolled out in hotspots where municipalities are struggling to provide consistent services. The water-stressed districts to benefit from this project are Ugu, uThukela, uMzinyathi, Amajuba, Zululand, uMkhanyakude and Harry Gwala. The main pipelines of Kokstad and Underberg are receiving upgrades, as are the water supply systems at Bergville, Skhemelele and Moyeni Zwelisha. The area north of the Durban central business district is one of the fastest-growing urban areas in South Africa, with a number of large office and accommodation projects going ahead simultaneously. This is a welcome development for the economy, but the new buildings also create pressure on infrastructure. The multi-year, R250-million Northern Aqueduct Augmentation project was initiated in 2014 and the fifth phase of the project is underway. This will provide water for Durban North, Umhlanga, Newlands, KwaMashu, Phoenix and Cornubia. Two new dams will add 800-million litres of water per day to the available supply in KwaZulu-Natal. As part of the lower uMkhomazi bulk water scheme, utility Umgeni Water will spend about R26-billion on the Smithfield Dam and R2.4-billion on the Ngwadini Dam. Umgeni Water currently supplies more than 472-million cubic metres of potable water to its six large municipal customers: eThekwini Metropolitan Municipality, iLembe District Municipality, Sisonke District Municipality, Umgungundlovu District Municipality, Ugu District Municipality and Msunduzi Local Municipality. The company has five dams, 10 waterworks, five water-treatment plants and two waste-water works, including Darvill. Large parts of the northern part of the province are served by Mhlathuze Water. The utility has assets valued at more than R3-billion and its area of supply covers 37 000m².

ONLINE RESOURCES Mhlathuze Water: www.mhlathuze.co.za National Department of Water and Sanitation: www.dwa.gov.za Umgeni Water: www.umgeni.co.za Water Research Commission: www.wrc.org.za

KWAZULU-NATAL BUSINESS 2021/22

SECTOR INSIGHT Water hotspots are getting urgent relief.

N e w te c h n o l o g y h a s been installed at the Verulam Wastewater Treatment Works of the eThekwini Municipality. Murray & Roberts Water and its European technology partner, Organica Water, has installed an environmentally-friendly system. Richards Bay has installed a 10-container desalination plant next to the municipal water treatment plant at Alkanstrand. The first mobile sea water purification unit in South Africa, it comprises 10 containers and is located adjacent to the water treatment plant at Alkantstrand. It can deliver 10 megalitres of drinking water. However, the high cost of electricity means that the unit is used sparingly. Solar energy is being investigated as a possible alternative. In 2018 JG Afrika delivered a R72-million desalination plant to South32’s Hillside aluminium smelter in the same town. ■

OVERVIEW

Energy Toyota dealers are using less energy. SECTOR INSIGHT Sugar producers want to sell electricity.

Credit: Toyota SA

n terms of Toyota’s Dealer Environmental Risk Audit Programme (DERAP), dealers do audits twice a year to check their compliance with various environmental and energy standards. One checkpoint relates to generating less energy. The national winner of the DERAP award installed 288 solar panels on the roof, uses LED lights in the workshop and natural light is utilised via louvres. The managing director of Illovo Sugar SA, Mamongae Mahlare, has told the Sunday Times that the sugar industry is in real need of some other source of income to offset tough times. Selling energy to the grid (and investigating biofuel and bio-energy) are “key” to the sector’s future, she told the newspaper. At the company’s Eswatini mill, Ubombo, it has a commercial supply agreement with the Eswatini Electricity Company. The province’s other sugar giant, Tongaat Hulett, produces between 12MW and 14MW of power at its mills and believes that the national sugar industry could generate between 700MW and 900MW. A 17MW biomass project represents the province’s only approved project in terms of the national Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). An open cycle gas turbine plant at Shakaskraal in the iLembe District Municipality can be converted to gas-fired technology, a method which energy planners are encouraging. The 670MW plant came on stream in 2017. Its project company, Avon Peaking Power, is jointly owned by a community trust, Mitsui (Japan), Legend

ONLINE RESOURCES National Department of Energy: www.energy.gov.za National Energy Regulator: www.nersa.org.za South African National Energy Development Institute: www.sanedi.org.za

Power Solutions (South Africa) and ENGIE of France. As part of the provincial government ’s strategy to boost regional development, t h e i Le m b e D i s t r i c t h a s been named as an Industrial Economic Hub (IEH) for the renewable energy sector. Khanyisa Projects has set up 26 biodigesters which produce gas for cooking at Ndwedwe in the iLembe District. The project forms par t of the Wor k ing for Energy programme of the South African National Energy Development Institute (SANEDI) which promotes the use of sustainable clean energy in rural areas. The Richards Bay Industrial Development Zone (RBIDZ) has been named as the site for 2 000MW liquefied natural gas (LNG) plant in terms of national government’s gas-topower plan. RBIDZ is also the site of a new biomass plant. Biomass technology is at the centre of the conversion scheme of South African Breweries at its Prospecton plant south of Durban. Methane-gas emissions from a nearby effluent plant are piped to the plant where they are converted to electricity. ■

KWAZULU-NATAL BUSINESS 2021/22

OVERVIEW

Banking and financial services Choices for South African financial consumers are expanding.

Aspen has taken a secondary listing on the A2X. Credit: Hodari Properties

spen Pharmacare is a specialit y pharmaceuticals company with a presence in more than 50 countries an d n ear l y 9 0 0 0 emp l oye e s . T h e co mp any ’s headquarters are in La Lucia Ridge north of Durban. Aspen’s production facilities are elsewhere, but the global headquarters offer a grand view of the Indian Ocean (and the roof of the headquarters of another giant South African company, Unilever South Africa) in an area popular with tax consultants and stock brokers. Aspen’s revenue in 2020 increased to R38.6-billion. Aspen’s decision to register a second listing on one of South Africa’s newest stock exchanges (the primary listing remains on the JSE) was a boost for A2X, which set out to attract secondary listings. Patrice Motsepe’s African Rainbow Capital is an investor in A2X. The announcement in December 2020 that Prosus was going to take a secondary listing on A2X raised the bourse’s total market capitalisation to nearly R5-trillion across 40 companies. Prosus, a consumer Internet group and technology investor, has a market cap of R2.7-trillion. Of the four new exchanges, Equity Express Securities Exchange (EESE) trades in Black Economic Empowerment (BEE) while ZARX and 4AX are targeting companies that are not listed elsewhere. ZARX has agricultural holding companies like TWK and Senwes among its first clients.

KWAZULU-NATAL BUSINESS 2021/22

SECTOR INSIGHT MyMo is Standard Bank’s newest low-cost bank account. Together with real estate and general business, the financial sector in KwaZuluNatal accounts for 18% of gross domestic product (GDP). Big strides have been made in providing banking services to the previously unbanked but there is still a long way to go. The widespread use of smartphones is creating new opportunities for banks and other financial service providers to further close the gap. Standard Bank introduced the low-cost MyMo account in KwaZulu-Natal in 2020. With free electronic transactions, unlimited card swipes and a low

OVERVIEW

monthly fee, the MyMo account is ideal for low-income earners, microentrepreneurs and the poor. Customers do not have to visit branches to sign up for the account. They can take a selfie on the mobile app. Says Imraan Noorbhai, Provincial Head of Standard Bank KZN, “Given South Africa’s history and current economy, financial inclusion is extremely important for us, and with the MyMo account, we want our customers to thrive financially.” Shariah-compliant banking is provided by alBaraka Bank which has its headquarters at Kingsmead in Durban, which is also the site of its corporate-banking division. In 2020 the bank announced plans for a comprehensive Shariah-compliant banking app, enabling clients to do transactions via mobile devices. Other technological updates are being explored to allow customers to open bank accounts from the comfort of their own homes. HBZ Bank, a wholly-owned subsidiary of Habib Bank and AG Zurich, has branches in Westville, Durban and Pietermaritzburg. In 2017 Tyme Digital received a licence to run a bank. By early 2019, TymeBank was available in 500 Pick n Pay and Boxer stores and more than 50 000 customers had an account. Tyme stands for Take Your Money Everywhere; the bank does not have a branch network. African Rainbow Capital began as the venture’s BEE partner but in 2018 bought out the Commonwealth Bank of Australia. Tyme reported in October 2020 that it had 2.4-million customers, up from 1.4-million at the end of March. A 400% increase in the use of services such as airtime and electricity purchases was also noted. Second to market among the country’s new banks was Discovery Bank, which officially launched in 2019 and is experiencing rapid growth with retail deposits at the end of 2020 of R5.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour. The Discovery group is already a giant on the JSE with a market value of R83-billion and access to millions of customers.

Development loans The Brics New Development Bank has made a $200-million loan for the expansion of the container terminal in Durban. The busy port is currently stretched beyond capacity and waiting time for trucks can be extremely long.

Activist groups in Durban’s southern suburbs are opposing the loan and the expansion, saying that further development will increase pollution in the area and lead to even more dangerous traffic congestion. Up the coast at Richards Bay, the World Bank’s International Finance Corporation (IFC) has commit ted $2-million to a feasibility study on the construction of a liquefied natural gas (LNG) storage and regasification terminal. The study’s costs are shared with Transnet and a private investor will be sought if the feasibility study is positive. The Chartered Institute of Government Finance, Audit and Risk Officers (Cigfaro) advises institutions, trains its members in public finance and promotes the interests of professionals in the public sector. It also develops and assesses qualifications and advises tertiary institutions on the requirements for courses. The South African Institute for Chartered Accountants International provides training in financial reporting standards for SMMEs while the Insurance Institute of KwaZulu-Natal (IISA) holds regular education workshops. The institute’s mentorship programme is run in association with the Musifunde Training Centre. ■

ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Financial Sector Conduct Authority: www.fsca.co.za Insurance Institute of South Africa (KwaZulu-Natal): www.iikzn.co.za South African Institute for Chartered Accountants: www.saica.co.za

KWAZULU-NATAL BUSINESS 2021/22

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Development finance and SMME support Exxaro and Bell are teaming up to help SMMEs. SECTOR INSIGHT Provincial government funds are available for entrepreneurs.

Agreeing to work together: Mzila Mthenjane (Executive Head: Stakeholder Affairs, Exxaro) and Duncan Mashika (MD, Bell Equipment Sales South Africa).

esources company Exxaro has signed an agreement with KwaZulu-Natal company Bell Equipment which gives access to contractors to mining equipment at affordable prices, as part of Exxaro’s enterprise and supplier development (ESD). Advice and support to the new owners of equipment will also be available in terms of the partnership. The Provincial Government of KwaZulu-Natal made available through the Operation Vula Fund the sum of R150-million in the 2020/21 financial year in support of enterprise development. Similarly, the KZN Youth Empowerment Fund has provided R71-million to 55 youth-owned enterprises, including Uthandimvelo Trading, a supplier to the Tongaat Hullet Mill. A R1.45-million grant assisted in the creation of 10 permanent jobs and 25 temporary jobs. Funding from the National Department of Trade, Industry and Competition’s (dtic) Black Industrialist Programme and from the Industrial Development Corporation (IDC) secured 70% of Newcastlebased Boschpick Engineering for entrepreneurs Bongani Khumalo and

ONLINE RESOURCES National Department of Small Business Development: www.dsbd.gov.za SA SME Fund: www.sasmefund.co.za Small Enterprise Development Agency: www.seda.co.za

KWAZULU-NATAL BUSINESS 2021/22

Phillip Majali and their company Lipsobex. The IDC provides finance across a range of sectors from agriculture to tourism. The Small Enterprise Development Agency (Seda) is active in supporting entrepreneurs. Seda gives non-financial support through training, assistance with filling in forms, marketing and creating business plans. In KwaZulu-Natal, Seda runs 12 Incubators which either help new businesses get started or with the rehabilitation of existing enterprises. Three models are used: Technology Demonstration Centres (demonstration and training); Technology Incubators (where the focus is rehabilitation); Hybrid Centres, which combine elements of the other two models. The KwaZulu-Natal incubators include ICT and construction (three centres each), furniture and hi-tech (two each) and chemicals, and essential oils. ■

INDEX

INDEX Citiq Prepaid ............................................................................................................................................................. OBC Durban Chamber of Commerce and Industry ........................................................................................... 2 EBH SA ................................................................................................................................................................................. 7 Enterprise iLembe.......................................................................................................................................................22 Petroleum Agency South Africa ........................................................................................................................34 Invest Durban.........................................................................................................................................................IFC, 1 Standard Bank...........................................................................................................................................5, 16, 28, 42

KwaZulu-Natal Business 2021-22

Articles inside

A REGIONAL OVERVIEW OF KWAZULU-NATAL

Banking and financial services

Construction and property

Energy

Water

Automotive

Development finance and SMME support

Tourism

Manufacturing