TRADE & INVESTMENT KWAZULU-NATAL POSITIONING KWAZULU-NATAL

AS A PREMIER INVESTMENT DESTINATION

Trade & Investment KwaZulu-Natal (TIKZN) is a South African outward trade and inward investment promotion agency, established to promote the province of KwaZuluNatal as an inward investment destination and to facilitate outward trade by assisting local companies to access international markets. The organisation identifies, develops and packages investment opportunities in KwaZulu-Natal; provides a professional service to all clientele; brands and markets KwaZulu-Natal as an investment destination; retains and expands trade and export activities and links opportunities to the developmental needs of the KwaZulu-Natal community.

TIKZN came into being following the national government’s decision to delegate investment promotion to the provinces rather than retaining it as a national function as had previously been the case. Internationally, the Department of Trade, Industry and Competition promotes the country, but TIKZN represents a seamless trade and inward investment promotion agency for KwaZulu-Natal. The agency hails the region as an investment destination and facilitates trade by assisting local companies to access international markets or bringing direct foreign investment to our shores. This means the investment promotion agency can speak as a single voice for KwaZulu-Natal, thus promote the province for individual domestic and international investors.

As a provincial investment promotion agency, TIKZN has facilitated more than R15 billion in new ventures since inception, bolstering job creation and economic growth and development. TIKZN professionally identifies, develops and packages KwaZuluNatal investment opportunities; brands and markets the province as an investment destination; retains and expands trade and export activities and links opportunities to community development needs. Currently the country’s second-largest economy, KwaZulu-Natal contributed approx. 16.3% to the national gross domestic product (GDP) in 2020, has the highest export propensity in the country, has the second highest level of industrialisation (as proxied by manufacturing output size) and boasts two industrial zones, namely the Dube Trade Port and Richard’s Bay Industrial Development Zone. The Dube Trade Port SEZ since its inception has attracted investment with a value of over R1.8 billion. The province is home to the King Shaka International Airport (KSIA) which is the third largest airport in the country and is home to the ports of Durban and Richards Bay which are important for export trade.

TIKZN has tailored training and employs a team of export specialists with international business experience and international business contacts to provide export training in the province, build capacity and assist with export planning. The Agency has assisted provincial exporters in accessing more than fifty new markets and enabled the participation of eight companies in the TPT Kaizen Program which commenced in September 2021, with all companies already completing awareness sessions and operational assessments. The Agency also facilitated Export Marketing Plan Training for four Emerging Exporters and two Advanced Exporters during the period spanning September to December 2021. In assisting local exporters increase their access to market, TIKZN’s Export Promotion Unit plans and participates in numerous outward selling trade missions; jointly participates with KwaZulu-Natal companies at exhibitions; implements exporter trade programmes and disseminates information.

Currently around 65% of South Africa’s exports pass through KwaZulu-Natal via its two seaports in Durban and Richards Bay, via air through the King Shaka International Airport and Dube Trade Port and along its road network, most commonly the N3 between Durban and Gauteng. The agency has exposed specifically emerging and smaller companies to the potential for exporting, also recognising the larger ones which have their own marketing and export divisions and thus are not as dependent on TIKZN for assistance.

The ongoing COVID-19 induced global economic recession has brought into sharp focus the need for retaining support for domestic and international investments that had already been made into KwaZulu-Natal, also underpinned by the volatile domestic economic environment. Trade & Investment KwaZulu-Natal through

its Business Retention and Expansion (BRE) Unit also assists municipalities, industry associations and businesses develop linkages and opportunities in a host of sectors including metal fabrication, chemicals and agroprocessing, tourism, infrastructure, business processing outsourcing and off-shoring (call centres). The Agency is also very instrumental in boosting the automotive cluster, information communication and technology (ICT), new innovations and research, development-led investments, and the energy sector, specifically where it develops skills and transfers new technology into the KwaZulu-Natal economy. In the past five years the BRE Unit has worked with municipalities and industry associations to implement appropriate interventions for companies in terms of their respective business development needs and business linkages.

KwaZulu-Natal is a significant role player in both manufacturing and transport and logistics sectors in South Africa. With two of Africa’s busiest ports and world-class road and rail infrastructure, KwaZulu-Natal enjoys the strategic comparative and competitive advantage of being a global gateway for trade into Southern Africa and to the world. Its strategic location and advanced industrial sector ensure a competitive edge for both local and foreign investors and unique advantages for local exports. Inward investment into KwaZuluNatal continues to emerge as a major contributor to South Africa’s growing economy and the favourable business environment has made the province a sound investment destination for investors from around the world.

The investment opportunities that exist in KwaZulu-Natal:

The year 2008, saw TIKZN establishing a Gauteng office which currently has competent hardworking staff members who report directly to the CEO’s office. The Gauteng office is key to the Agency meeting its vision and it expands on the Agency’s mandate to promote inward investment, support export trade opportunities and link investor requirements to the provincial socio-economic needs. This means assisting inbound delegations, identifying leads, promoting KwaZuluNatal’s various competitive advantages and consulting with the Department of Trade, Industry and Competition (dtic) and other relevant government departments to raise the province’s profile when investment opportunities arise.

The Knowledge Management Unit (KMU) enhances TIKZN’s research and knowledge capabilities to effectively disseminate comprehensive business intelligence to stakeholders. The KMU incorporates information and research; sector intelligence development and projects and deals structuring. In striving to achieve its mandate and attain key milestones, the agency has worked tirelessly to share knowledge in the region. The Agency continues to play a significant role in compiling publications like Emnothweni and Ezomnotho in collaboration with the provincial Economic Development, Tourism and Environmental Affairs Department (so named after the May 2014 general elections); in policy advocacy; in the packaging of key projects; in establishing a resource centre for investors and stakeholders; in developing renewable energy maps for investment purposes; in establishing a green economy blog in line with global demands for information on environmentally friendly resources and activities and in enhancing information technology (IT) systems to ensure TIKZN efficiently handles its business. More importantly, the province was the first nationally to undertake an investment climate survey; develop an investment protocol and sign up for the provincial investment monitor.

KMU also improves the organisation’s effectiveness and efficiency via the provision of IT services. The KMU’s research initiatives are formal or informal, ranging from reading the newspapers to identify opportunities when announcements are made about government officials speaking to different industries, companies seeking new sourcing initiatives or wanting to use greener technology, to formally studying policy documents.

Partnerships in research is important to the KMU’s success. TIKZN works alongside municipalities, educational institutions and other provincial agencies to secure the relevant answers to a research question. Projects are packaged by identifying focus areas, building on competitive advantages and also factoring-in the benefits for developing rural areas. For instance, an opportunity evolved from the announcement that a motor manufacturer wants to build lighter vehicles, paving the way for proposed investments into fibre crop production for the door panels.