TIKZN Emnothweni April 2015

EMNOTHWENI The Highlights Issue

On the pulse of Trade & Investment in KwaZulu-Natal

Issue 15

• Positioning Kwazulu-Natal as The Premier Destination • Export Week • M u n i c i p a l R o a d s h o w s • E x p l o r i n g t h e o pp o r t u n i t i e s W i t h i n t h e e a s t 3 r o u t e R e g i o n • H i g h l i g h t s f r o m t h e G a u t e n g O f f i c e • G i b s / ECR E x e c u t i v e B r e a k f a s t

Dube Tradeport ADVERT

CONTENTS THE HIGHLIGHTS ISSUE

Publisher: Trade & Investment KwaZulu-Natal Editor: Ayanda Zuma Assistant Editor: Angel Sibisi

02

The Highlights Issue...

Letter from the editor

04

Letter from the CEO

05

Positioning KwaZulu-Natal as the Premier Investment Destination

06

Head Office Contact: Trade and Investment House, 1 Arundel Close, Kingsmead Office Park, Durban, 4001, South Africa Mail: PO Box 4245, Durban, 4000 South Africa Tel: +27 (0) 31 368 9600 Fax: +27 (0) 31 368 5888

09

Tel: +27 (0) 12 346 4386/6763 Fax: +27 (0) 86 501 0848/1788

12

Group Chief Executive since 1984

Profile: CEO of Bell Equipment Group

12

TIKZN has exposed emerging smaller companies to the potential for exporting

Creating An Export Platform

14

14

Export Week highlighted the significance of exporting to the KwaZulu-Natal economy

2014 Export Week

15

Doing my passion for four years

Profile: President for Newcastle Chamber of Commerce

18

TIKZN spends between 3.5% and 4% of its payroll on training and education

The Pay-off of Training

21

23

TIKZN spends between 3,5% and 4% of its payroll on training and education

Stakeholder Engagement Municipality Road Shows

23

east3ROUTE initially started in 2011

2014 east3ROUTE

25

Email: info@tikzn.co.za Gauteng Office Contact: 99 George Storrar Avenue, Groenkloof, Pretoria

The Year 2014

Profile: Chairperson of the Board for Trade & Investment KZN

Journalist: Nicola Jenvey Disclaimer: This magazine is published in good faith and every effort has been made to ensure that the information was true and correct at the time of going to print.

The Year 2014

Currently the Country’s Second Largest economy, KZN contributed 15.7% to the national GDP

Layout & Design: MediaCom SA Photography: Shirley Le Guern Perusha Govender Yajur Chotai

05

Last year the BRE unit assisted 15 companies with their expansion and retention needs

Retaining Business for KwaZulu-Natal

27

21

KZN was the first to undertake an investment climate survey

Aligning Our Knowledge with the Province’s Investment Demands

29

Since 2007 TIKZN has attracted 53 new investments worth R7.48 Billion

Speaking to the Heart of TIKZN

www.tikzn.co.za

34

TIKZN received a clean audit for 2013/14

Working Smarter

36

2014/2015 in review

TIKZN Gauteng Office

38

Finding Your Frequency

2015 GIBS Business Breakfast

34 38

Letter From the Editor Sanibonani!

A warm welcome to our very first issue of Emnothweni 2015.

We couldn’t be more excited to have made it to this point. Take some time out of your busy schedule to benefit from the many different threads that weave the fabric of this informative edition.

We have come to a decision to call this edition of Emnothweni the “Highlights Issue”, which will reflect on our journey since the inception of this agency. (Page 5-7)

Ayanda Zuma

GM: Marketing and Communications, Trade & Investment KwaZulu-Natal

The east3ROUTE partner agencies from KwaZulu-Natal, Mozambique, Seychelles and Swaziland hosted a successful investment seminar in Durban as part the east3ROUTE initiative.

By hosting this seminar in Durban, it contributed to marketing KwaZulu-Natal (KZN), Durban in particular as a gateway to Africa, and breathe life into the collective efforts that integrate the respective countries in order forge trade and commercial ties and to strengthen stakeholder relations. (Page 23) Another promotion avenue utilised by Trade & Investment KwaZulu-Natal (TIKZN) are the Municipal road shows, which are aimed at building and sustaining sound relations, and promoting the municipalities as investment destinations. The year 2014 saw us visiting uThungulu District (2013/14 FY), Ugu District, Harry Gwala District Municipalities, and recently we set out to Amajuba District Municipality. (Page 21-22) KZN Export Week was another highlight of the year 2014.

The essence of this week is to establish an understanding and awareness of exporting, and the importance thereof. (Page 14) Our satellite office in Gauteng has been hosting the TIKZN flagship International Organisations event since 2008. This event showcases TIKZN’s strategic development of the investment opportunities to Ambassadors and Trade Commissioners (Page 36-37) This highlights issue is filled with a great mix of informative reads and developments pertaining to the Exceptional Kingdom of KwaZulu-Natal. This issue also sees the introduction of advertising from our sister entities and strategic stakeholders.

Salani Kahle, until next time.

1

MESSAGE From the

CEO

Dear Stakeholder

Zamo Gwala CEO, Trade & Investment KwaZulu-Natal

In retrospect of the year 2014; South African economy is estimated to have expanded by 1.5% in 2014. The highest growth was recorded in the agricultural sector at 5.6%, followed by general government services at 3.0%, the construction industry (2.9%) and the transport, storage and communications (2.3%). The KwaZulu-Natal economy is estimated to have grown at 1.7% in the same year, from 2.1% in 2013. KwaZulu-Natal‘s agricultural sector accelerated the fastest at 5.5%, followed by the general government services at 3%, construction, finance, real estate and business services (FREBS) at 2% each.

Emanating from these figures, it is evident that not only is KwaZulu-Natal the second provincial economy in the country, but it also seems to be setting the tone for South Africa’s economic movement. The provincial agricultural output increased, and this had a positive impact on the country’s agricultural output.

The physical transformation of the node between uMhlanga and the aerotropolis area at the Dube Trade Port is astonishing; road works all over the province are a testimony for the readiness for further economic expansion, or rather its determination to set the pace for further provincial and national economic expansion. The confidence in the province‘s future economic trajectory is also witnessed by the number of investment projects that Trade & Investment KwaZulu-Natal continues to attract into the province.

To support the promotion of municipalities as investment friendly destinations, Trade & Investment KwaZulu-Natal and the South African Local Government Association, (SALGA) signed a Memorandum of Understanding (MOU) which forms part of the programme that will generate key strategic projects for investments in the district Municipalities. Emanating from this, during the 2014/2015 financial year, Trade & Investment KwaZulu-Natal embarked on three Municipal road shows that seek to unlock the investment opportunities and create jobs across the province of KwaZulu-Natal. To ensure efficiency; Trade & Investment KwaZulu-Natal will continue to work closely with municipalities to package and promote investment opportunities and encourage local companies to export.

KwaZulu-Natal hosted a successful east3ROUTE Investment Seminar which was aimed at providing a platform for engagement on tourism and related economic activities in this region.

The year 2014 also saw another successful KwaZulu-Natal Export Week which highlighted the significance of exporting to the KwaZulu-Natal economy and was aimed to celebrate the success of KwaZulu-Natal exporters.

Trade & Investment KwaZulu-Natal has enjoyed the fruits of setting up a presence in Gauteng through the relationships that have been established with Department of International Relations and Cooperation. Several leads have been generated from this interaction that has translated into pipeline projects.

Trade & Investment KwaZulu-Natal reaffirms its commitment to promote the investment opportunities which exist in this province and we seize every opportunity to market KwaZulu-Natal as the investment destination going forward.

5

Interesting Facts KwaZulu-Natal is South Africa’s second largest economy, contributing on average 16 % ( 2013) to the country’s GDP.

P ositioning K w a Z ulu - N a t a l a s T H E

Premier Investment Destination

THE provincial investment promotion agency Trade & Investment KwaZulu-Natal (TIKZN) has facilitated more than R15 billion in new ventures since inception, bolstering job creation and economic growth and development.

manufacturing export-only goods. This dove-tails with promoting KwaZulu-Natal as an investment destination and facilitating trade by assisting local companies access international market.

“TIKZN has streamlined our approach into a seamless process benefitting those looking to invest and the economic impact of those decisions,” Economic Development, Tourism and Environmental Affairs MEC Michael Mabuyakhulu says.

Major international investors have included Tata Steel KZN (India) in Richards Bay, Tai Yeun Textiles (Taiwan) in Mooi River, Safal Steel (Mauritius) in Cato Ridge and numerous call centres relocated from the UK. In the past five years, multi-national investments to the province totalled R4.5 billion.

Echoing those sentiments, Mabuyakhulu says TIKZN has been “at the core” in giving South Africans equal business opportunities by promoting trade and doing business globally. This has consequently created thousands of local jobs and raised the quality of life for people previously struggling with poverty and unemployment.

TIKZN CEO Zamo Gwala says the agency has also assisted smaller businesses access 50 new markets with many

TIKZN professionally identifies, develops and packages KwaZulu-Natal 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.

6

Interesting Facts KwaZulu-Natal is a major role player in the manufacturing sector in South Africa.

Currently the country’s second-largest economy, KwaZuluNatal contributed 15.7% to the national gross domestic product (GDP) in 2011 and boasts the third-highest export propensity and second-highest level of industrialisation, driven by the ports of Durban and Richards Bay. “The agency achieved a national first in launching the Investment Protocol Handbook as a guide to business policies and processes with particular focus on the ease and cost of doing business for local and foreign investments,” Mabuyakhulu says.

The handbook covers the regulatory environment and its processes; the cost of doing business and the time required to conclude compliance processes and had emerged from the challenges investors and service providers were experiencing.

Mabuyakhulu says TIKZN had been pivotal in compiling investment conferences to catapult KwaZulu-Natal as a lucrative destination and identified new markets and appropriate entrance strategies.

“While a formalised export strategy is being fine-tuned, the department has worked closely with TIKZN and seen the emergence of an institution worthy of its existence,” Mabuyakhulu says.

However the leaders acknowledge the years have not passed without challenges. The global recession forced

investors to shift their focus from emerging economies - a move that has limited the agency’s ability to attract new investors.

Locally, the country struggles with skills shortage and KwaZulu-Natal competes against Gauteng in attracting the requisite skills. This underpins a national call for urgently promoting skills development and opportunities for up skilling citizens to ensure they play a more fundamental economic role, particularly given the recession cost KwaZulu-Natal 1-million jobs and the country continues suffering a rising trade deficit.

Previously accounting for 23% of South Africa’s GDP, manufacturing now constitutes only 4%. However, in KwaZulu-Natal it accounts for 16% of the gross geographic product (GGP) which Mabuyakhulu says highlights the province’s export capacity provided individual role players - government, private sector, labour and civil society - were wholly committed.

“We also fight our media that sends out negative messages detrimental to building investment opportunities - power failures are over-exaggerated and there is a perception the government is slow on its turnaround times for project approvals, thus affecting efficiencies,” Gwala says.

Mabuyakhulu says access to finance ranks as an international problem, but critical to building the economy was assisting small and medium enterprises (SMEs).

“The agency achieved a national first in launching the Investment Protocol Handbook as a guide to business policies and processes with particular focus on the ease and cost of doing business for local and foreign investments,” Mabuyakhulu says.

7

Interesting Facts TIKZN’s rand value target for the 2013/14 financial year was R1.2 billion and the organisation achieved, R1.3 billion exceeding the target by R100 million.

Statistics reflect five out of seven entrepreneurs failed in their SME venture and he believes the country desires a comprehensive strategy to turn this around, transforming the economy into one dominated by SMEs as happens in Malaysia, Singapore and Japan.

Gwala says the Human Resources Development Council of South Africa, a multi-stakeholder body focusing on improving the human resource base, has created a comprehensive strategy for appropriate skills development.

Locally, the provincial government, labour, business and civil society had signed a social accord identifying youth employment and upskilling as key elements for economic growth.

Dove-tailing with that initiative was the Moses Kotane Institute, an entity within Mabuyakhulu’s department focusing on developing science, technology, engineering and mathematics skills among the youth. It aims to enhance economic development through these skills among the current and future workforce and government officials.

The provincial planning commission has further crystallised KwaZulu-Natal’s economic development with the strategy identifying the key priority industries - maritime, tourism, environmentally-friendly or green, aerotropolis applications around the King Shaka International Airport and Dube Trade Port and reindustrialising KwaZulu-Natal by focusing on the competitive advantages offered within different regions.

Translating that objective into reality, TIKZN established a Gauteng office in 2008 and added capacity two years later, meaning the office is currently staffed by two hardworking employees falling under the CEO’s office. The venture 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 KwaZulu-Natal’s various competitive advantages and liaising with the Department of Trade and Industry (DTI) and other relevant government departments to raise the province’s profile when investment opportunities arise.

Gauteng office manager Donnee Kruger says in the past six years their endeavours have generated R1.2 billion from a host of projects including Nantong Sen Li Da Fibres (R80 million), Umgeni Water (R340.8 million), banking group Lloyds TSB (R90 million), Brodskie Consulting (R123 million) and Cappenny Estates (R18.5 million) and created 1488 new jobs. Several leads have become pipeline projects, while the office has hosted 55 sector-specific foreign investor sessions.

“This means the agency can sell the province in its entirety whereas previously it sold a basket opportunity called ‘KwaZulu-Natal’ and then each municipality has to compete in its marketing initiatives,” Gwala says.

Another 141 inwards missions have been hosted in Gauteng.

From an export perspective, the office has provided support via capacity building programmes and market development programmes that have created awareness on export trade promotion activities; referred trade enquiries from wholesalers, buyers and trade offices; lobbied support for outward selling missions; passed on country-specific market intelligence and hosted events with trade offices, buyers and wholesalers.

Mabuyakhulu says another key initiative to boosting skills development was the exchange programme with the National Institutes of Technology (NIT) that has seen 10000 students benefit from learning in these Indian-based public engineering institutions.

“The office has also raised its visibility with the diplomatic corps and international organisations with this year’s annual event hosting 135 representatives from 92 countries. The function updates strategic developments and generates a significant amount of business,” Kruger says.

Gwala says the relocation of call centres from the UK to KwaZulu-Natal had provided a significant boost to the local economy and job creation with the centres creating on average 500 jobs, mainly for school-leavers, per new outlet.

However, the companies were still splitting their call centre business with the voice management element happening in South Africa and the business process outsourcing element being situated elsewhere in the world, most commonly India.

She says the office was initially founded to target inbound foreign delegations that omitted KwaZulu-Natal from their itineraries and thus generate relevant leads and channel business to the province. Included in that mandate was marketing KwaZulu-Natal and building its image as a premier investment location with strategic partners like embassies, chambers of commerce and head offices of Gauteng-based companies.

“This is the element we are keen to bring to the country as it employs graduates and can develop skills and create employment for the youth,” he says.

Mabuyakhulu says the department was currently in discussions with the eThekwini municipality to develop a coherent strategy that supported the call centre industry to ensure the province and city “secures the lion’s share of the investment in this sector”.

However, she acknowledges that in the past year foreign direct investments to South Africa have dropped 24% according to the World Investment Report while paradoxically seeing an increase in investments to the renewable energy sector. Going forward South Africa will fiercely compete for a slice of a decreasing investment pie and that means “playing the game very cleverly ... we have to make sure we have an attractive investment environment and remain pro-active in engaging with potential investors”.

Trade & Investment KwaZulu-Natal Board Members: Ms Ina Cronjé and Gary Bell With the departure of Mr Obed Mlaba and taking the position as South Africa’s High Commissioner to London. The MEC for KZN Economic Development, Tourism and Environmental Affairs appointed two Board members, Mr Gary Bell as the TIKZN Board Member and Ms Ina Cronjé as the Chairperson of the TIKZN Board.

.

.

Profile

chairperson of the board for trade & investment kzn Ms Ina Cronjé was born in Pretoria but grew up with her four sisters in Schweizer-Reneke – the old Western Transvaal – now North West Province. In 1964 she graduated at the University of Pretoria, majoring in German, Afrikaans-Netherlands and History of Art. She taught at schools in Johannesburg and Pretoria before moving to Phalaborwa where she wrote articles for the local community newspaper after enrolling for a correspondence course in Journalism. In 1968 Ms Cronjé resumed her teaching career in Amanzimtoti at Kingsway High School and later at Pietermaritzburg Girls’ High and St Anne’s Diocesan College. During her teaching career Ms Cronjé obtained her University Education Diploma, as well as an Honours Degree in Afrikaans-Netherlands at the University of Natal. She also lectured part-time at the University of Natal in Second Language Teaching Method.

After the birth of her son she retired from teaching to study law fulltime through Unisa. In the late 1980’s she was admitted as an attorney and practiced as such in Pietermaritzburg until 1994. During this period she also became more active in the African National Congress and was a founder member of the first ANC branch in Pietermaritzburg Central after the ANC was unbanned.

As a consequence of her political involvement she acted for and defended a number of ANC members in political trials.

In 1994 she was elected as a Member of Parliament in the KwaZulu-Natal Provincial Legislature. Initially she served as ANC Deputy Chief Whip, under the first Chief Whip, the late Mr Harry Gwala, from whom she took over after he had passed away. She held the position as Chief Whip until April 2004, while also chairing the Portfolio Committee on Conservation and Environmental Affairs and serving on the Finance, Public Accounts and Education portfolio committees. During this period she obtained a Post Graduate Diploma in Environmental Law at the University of Natal (Pietermaritzburg).

Ms Cronjé served in the ANC’s Provincial Executive Committee and the Provincial Working Committee. She currently serves as the Board Chairperson at Trade & Investment KwaZulu-Natal.

MS Ina Cronje Chairperson of the board for Trade & Investment KwaZulu-Natal SOUTH AFRICA

Profile

CEO o f B e l l E q ui p ment Group

This year marks Bell Equipment Company South Africa’s sixtieth anniversary and Group Chief Executive, Gary William Bell, has been at the company’s helm for thirty of those years, overseeing manufacturing and sales operations worldwide. During this time he has been at the forefront of developing the business as a local manufacturing icon and growing the Bell name as a globally recognised and respected brand.

Gary Bell

Bell Equipment Group Chief Executive

Gary is the second oldest of three sons born to Bell Equipment founder, Irvine Bell and his wife, Eunice.

He was born in Empangeni on 3 July 1952 and grew up on the family farm on the outskirts of Empangeni, where Irvine had his workshop.

He attributes his parents as having had the biggest influence on his life, providing a strong family foundation, setting a good example with their strong worth ethic and instilling good values of honesty and integrity. Similarly Irvine Bell has had the greatest influence on his career, fostering a passion for innovation and all things mechanical and providing mentorship and support.

Just as Bell Equipment had humble beginnings as an engineering and mechanical repair workshop, so too did Gary have a modest start to his career. After completing his schooling at Eshowe High School in KwaZulu-Natal and obtaining his Mechanical Engineering Diploma at the former Natal Technikon, he joined Bell 1970 as a trainee technician for a pay packet of R11 per week.

In 1984 he became Group Chief Executive of the company and his participative management style and life philosophy of taking every opportunity has had a major influence in the running of this dynamic South African success story. His best achievement professionally is the recognition of the company as the country’s manufacturing icon and the various accolades that have been bestowed on Bell Equipment over the years.

Today, under his guidance, Bell Equipment is a leading global manufacturer, distributer and exporter of a wide range of material handling machines, which are marketed and distributed, both locally and internationally, through a wide network of branches and independent dealers.

Turnover for 2013 was an impressive R6,3 billion.

The company’s product range consists of over 50 different models of tractor loader backhoes, articulated dump trucks, wheeled loaders, rigid and articulated haulers and tri-wheeler rough terrain material handling equipment. These are manufactured locally to world class quality standards; supplying machinery to the sugar, forestry, mining and construction industries worldwide.

In addition, Bell Equipment is an appointed distributor in selected territories representing the manufacturers of several leading international brands. The company has also strengthened its trading base through trade and strategic alliance agreements with other global companies.

As such Bell Equipment is strategically placed as a one-stop shop for earthmoving equipment with over 100 products well suited to all applications.

Just like his father, Gary steers the company to take innovative leaps and continually ‘move forward’; looking for ways to exceed the needs of customers. Those who know him will attest to his love of people, family and community – believing in giving someone a chance to prove their worth.

Gary is married to Larissa and they enjoy birding, game reserves and travelling, and entertaining friends and customers in our beautiful country. A caring and loving father to sons Quentin (34) and Mark (32), Gary shares their love of mountain biking and encourages them to enjoy our wonderful South African weather, which he says is the best in the world.

12

Interesting Facts

Trade & Investment KwaZulu-Natal has tailored training and employs a team of export specialists with international business experience and international business contacts to provide export training and export capability assessments and assistance with export planning.

Creating An

Export

Platform people to access different positions every few years. It is an approach that “keeps the unit fresh and relevant and brings in new eyes when older ones can become jaded”, while also refreshing the contacts - bringing in someone who has importer experience offers the opportunities for selling the 350 million-strong Southern African Development Community (SADC) market to exporters.

Mr Lester Bouah Executive Manager Export Development and Promotions Successfully creating an avenue for previously disadvantaged individuals and their companies to market and export their goods reaches into the heart of translating democracy from a political to an economic statement.

Trade and Investment KwaZulu-Natal (TIKZN) export development and promotion executive manager Lester Bouah says one of the highlights since the unit was founded has been exposing and supporting new market players to the international arena and witnessing their accomplishments in a world not previously within their grasp.

“By trying to level the playing field, the agency has embraced the meaning inherent in a democratic society,” he says.

Into that discussion, Bouah says a rotational management system has significantly raised skills by allowing

In assisting local exporters increase their access to market, the 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.

TIKZN has assisted provincial exporters in accessing 50 new markets, exceeding its annual target in the 2012/2013 financial year that Bouah in part attributes to the agency’s partnerships with foreign economic representatives of the Department of Trade and Industry (DTI), distributors in the respective markets and other linkages.

He says last year alone local companies gained access to markets in Germany, France, US, Angola, Ghana, Nigeria, Mozambique and Botswana and these penetrations underpin the broader milestones the unit has achieved in creating awareness among KwaZuluNatal citizens that the province has export potential.

Currently around 65% of South Africa’s exports pass through KwaZulu-Natal

via its two sea ports 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. Bouah says the agency has exposed specifically emerging and smaller companies to the potential for exporting, recognising the larger ones have their own marketing and export divisions and thus are not as dependent on TIKZN for assistance.

The agency has also exposed companies to international markets by facilitating meetings with buyers entering the country and creating the platforms for companies to showcase their products locally and internationally. This has been coupled with offering local exporters exposure to international experts including the Korean Trade Development Agency (KOTRA), Japan External Trade Organisation (Jetro), Malaysia External Trade Development Corporation (MATRADE) and International Enterprise Singapore (IES).

The enterprise development mentorship programme has capitalised on partnerships with the South African German Chamber of Commerce (workshop sessions that provided participants with information and training on logistics, documentation, export finance and insurance); the KwaZulu-Natal Fashion Council (a six-week mentorship programme for eight designers) and the Department of Agriculture and Dube Trade Port (hosting a Global Good Agricultural Practice workshop for small-scale farmers).

13

Interesting Facts The province is strategically positioned on the countries Eastern Seaboard, and is home to two of Africa’s busiest and largest ports, Durban and Richards Bay.

These initiatives have dove-tailed with work TIKZN has done with the DTI enterprise organisation in hosting provinciallybased exporter training sessions in Durban and Richards Bay; another training session that included an introduction to international trade and International Commercial Terms (Incoterms) 2010, the series of pre-defined commercial terms published by the International Chamber of Commerce widely used in international commercial transactions or procurement processes.

The Dutch-based Centre for the Promotion of Imports from Developing Countries (CIDC) organisation also contributes to sustainable economic development in developing countries including South Africa by expanding exports from these countries to the European Union (EU).

“It is an honour knowing we have assisted companies with their individual developments, specifically within the exporting space. The training sessions, seminars and workshops have helped these companies understand what makes exporting work from the tariffs to the terms and the differentiating issues,” Bouah says.

He says last year Economic Development, Tourism and Environmental Affairs MEC Mike Mabuyakhulu launched Export 101: A Guide to Exporting as a practical manual on the key processes and regulatory frameworks for aspiring, emerging and existing exporters.

“The guide positions exports as an essential portfolio with numerous benefits that can be enhanced accordingly and the goal was providing a thorough overview of exporting in favour of trying to answer every possible question on the subject,” he says.

While recognising the achievements, Bouah does not shy away from indicating they have come with challenges. Principal has been making manufacturing companies aware they that have the potential and ability to export their products - and critically within that space is creating awareness among broadbased black economic empowerment (BBEEE) companies and providing them the exposure for realising that dream.

Leveraging funding is another common issue facing companies globally and Bouah says TIKZN works with sister agencies like the DTI to augment budgets by tapping into their export promotion and development schemes.

“It is simply about being clever with the money and the budgets,” he quips.

Looking back, Bouah says the unit has developed a

sound team that inherently understands exporting and the demands required to create and promote new opportunities for exporters. Team members have built on their knowledge through different courses and international travel and focus the bulk of their interventions towards small, medium and microenterprises (SMMEs) and BBEEE companies, while getting traction from larger corporates in line with how those entities perceive TIKZN can assist them.

Taking the forward view, he believes there will emerge a means by which to measure the difference the unit is playing economically. However, receiving information from clients on the rand value of their exports and export growth “demands building trust”.

“It is important to know we have made a difference to the KwaZulu-Natal exporting landscape, forging a quantifiable number of new exporters and/or taken a certain number of manufacturing companies and gotten them export-ready.

These figures then become tangible evidence of what we are doing,” Bouah says.

14

Interesting Facts Situated on the eastern seaboard of South Africa, KwaZulu-Natal has direct access to both the Indian and Pacific Ocean rims.

Success Stories: 2014 Export Week Hosted by Trade & Investment KwaZulu-Natal (TIKZN), the 2014 Export Week programme took place in Durban from the 17 - 20 November, the programme was jam-packed with activities and presentations developed to recognise, promote and assist in nurturing KwaZulu-Natal’s export businesses and industry.

The KZN Export week is an annual programme of TIKZN that was developed to recognise, promote and assist with growing KwaZulu–Natal’s export businesses and industries. Through the comprehensive programme of activities, it provides professional development and information on growth sectors and market opportunities to KwaZulu–Natal’s new and existing exporters and internationally focused businesses.

The essence of this week was to establish an understanding and awareness of exporting and why it is important and how KwaZuluNatal in particular can bridge the gap, which a trade deficit between imports and exports.

We need to improve on South Africa’s Trade deficit and one sure way to do this is through exports.

ENT KW AZ STM UL VE N I

O

RT

01

EX

P

4

TRA DE

AL AT -N U

&

The motive behind the export week was also to encourage more companies’ especially small companies to export more and diminish the trade deficit. Exporting creates many opportunities for the company and the economy, other benefits include; it offers the advantages of a larger market with greater economies of scale, it provides an opportunity to grow and sustain business operations; it enables the Province of KwaZulu-Natal to attract investments and new business, thereby creating employment opportunities.

W EEK

2

Amongst the speakers, was the General Manager: Office of the CEO, Mr Neville Matjie, the CEO of TIKZN, Mr Zamo Gwala, the MEC for Economic Affairs and Tourism, the Honourable Mr Michael Mabuyakhulu, the Consul General of the USA, Ms Frances Chisholm and Ms Ina Cronje, Chairperson of the Board of TIKZN. In the MEC’s presentation he outlined the importance of the Export Week and how TIKZN has been assisting local firms to export their goods and services. He then went on to deal with the problems and challenges of exporting. Towards the end, he highlighted

the problem of the Trade Deficit, which he felt was a worrying problem for South Africa.

In terms of the opportunities in exporting, he made reference to the BRICS bloc and indicated the potential this offered to South Africa.

With reference to the Africa Rising issue, he was positive that the new developments in Africa, affirmed the truth of the narrative. He, however, stressed that as much as Africa was rising, there are major challenges. He was at pains to point out that if the trade deficit was not dealt with positively, it could affect the overall development agenda of South Africa and contribute negatively in terms of employment.

The 2014 Export Week included the Launch of Export Portal and Directory was introduced

by Mr Desmond Golding, Head of Department for Economic Development, Tourism and Environmental Affairs and Launched by the Honourable MEC Mr Michael Mabuyakhulu, MEC for Economic Development, Tourism and Environmental Affairs.

TIKZN invited REGENT Business School to partner in hosting a Master Class. The Topic for the Master Class was: Africa Export Rising: Myth or Reality? The Panellists included Mr. Michael Mabuyakhulu (MEC for Economic Affairs and Tourism, KwaZuluNatal), Mr. Zamo Gwala (CEO Trade & Investment KwaZulu-Natal), Mr. JeanMichel Marnoto (CEO Bureau Veritas), Mr. Andrew Layman (CEO Durban Chamber of Commerce), Professor Anis Karodia (Senior Researcher at REGENT Business School), Mr. Riaz Haffejee (CEO Sumitumo Rubber South Africa), Ms Ina Cronje (Chairperson of Board for Trade & Investment KwaZuluNatal). The Master Class was moderate by Ms Hannah Edinger of Frontier Advisory and Professor Dhiru V Soni (Director for Research & Innovation at REGENT Business School) was the Rapporteur.

Export Week highlighted the significance of exporting to the KwaZulu-Natal economy and was aimed to celebrate the success of KwaZulu-Natal exporters. It was filled with information and networking sessions, an export business summit and capped off with the Durban Chamber’s Export Awards Gala Dinner.

Newcastle Chamber of Commerce & Industry

NCCI’s New Committee 2015: Jade Mongami, Angelo Visser, Lindiwe Mkhize, Daleen Swart, Japie Van Kampen, Khanysile Maseko, Amanda Frost Admin with Sipho Sithole Deputy President And Cicilia Pieterse, President.

Profile President for N e w c as t l e

Cicilia Pieterse President for Newcastle Chamber of Commerce

Chamber of Commerce The NCCI is a voice for business. My role as President of the organisation is to make sure there is a link between business and local Municipality as well as business to business. My main function is to make sure business in Newcastle is healthy and that there is has a good environment in which to operate. I also run projects to sustain the Chamber office.

This is my fourth year in the Chamber and I have enjoyed every moment. What I appreciate the most is the vast variant within my work. I love to try new things and set new challenges in my new career. I have met so many amazing business people through the years at the Chamber. My colleagues are such a vibrant group of people and it’s a great pleasure working with them.

I also have a successful company; IGWAT. Having always had my heart set on business, I started my own. My passion is to see all businesses grow to the betterment of N/KZN. My motto in life is a healthy mind, body and believe in hard work and a dedication to what competing in fitness competitions here and I have found a good balance between fitness business worlds.

spirit. I I do. By abroad, and the

We are likened to the Oak tree.

Our heritage, like the roots is, extensive and runs deep.

Our contacts and networks, like the branches and leaves are countless.

Our influence, like the canopy is shielding and nurturing.

Over 159 YEARS YOUNG

An Unsurpassed Heritage, A Lasting Foundation for Growth in Changing Times The Chamber is deeply rooted in the commercial and industrial soil of the province, with extensive global connections and relationships extending from grass-root non-profit organisations and micro enterprises - to the board rooms of blue chip corporate giants and parastatals. No other organisation in KwaZulu-Natal is able to offer the legacy and credibility, unique to this institution. We invite you to engage with us.

18

Human Resources

According to statistics South Africa’s 2011 mid-year population estimates, the province of KwaZulu-Natal is the second most popular province following the Gauteng Province.

T h e Pay- o ff of Training

Corporate Services Executive Manager Mxolisi Manyakanyaka proudly holds up a list of people who have progressed professionally and personally because of the company policies, not least of whom is his colleague Ayanda Zuma who has risen from marketing officer to her current position as the TIKZN Marketing and Communications General Manager.

Mr Mxolisi Manyakanyaka Executive Manager Human Resources Trade & Investment KwaZulu-Natal (TIKZN) spends between 3,5% and 4% of its payroll on training and education in a country where the national average is only 1% - and that commitment is paying handsome dividends among its employees.

However, the policy decision to take on board tertiary students for their inservice training has seen youth like Nkululeko Molefe completing his sixmonth stint before being recruited by Transnet and Nosipho Thusi begin working as a receptionist and now being one of TIKZN’s research officers.

Nontokozo Hombile was a receptionist then a personal assistant and now the facilities manager with Manyakanyaka commenting that each individual has developed new skills and experience

via the internal development initiatives - and that is something of which the corporate services unit has be inordinately pleased in heralding as a milestone.

“Annually every employee must receive some form of training - be that the security guards working for an outsourced company, but with the view to improving their lives, to the cleaners eyeing the potential to work as a receptionist or the two colleagues currently reading towards their masters in investment promotion,” he says.

Into that arena, Manyakanyaka says TIKZN was currently in discussion with the University of the Witwatersrand (Wits) and University of KwaZulu-Natal to establish investment promotion programmes that can train and educate South Africans on the topic at executive level. This desire dove-tails with the objectives outlined in the National

19

Human Resources

In Durban, at least 80% of all households have access to basic services (Water, sanitation, electricity and refuse removal), business coverage is 100%. Durban is also home to one of the busiest ports in Africa.

Development Plan (NDP) that seeks to produce education relevant for the market’s demands.

Zuma says when TIKZN was established in 2001, no marketing strategy existed.

Today the corporate services unit, born from the amalgamation of marketing and human resources last year as a means by which to better underpin the value the organisation upholds for its people, has developed a host of relevant marketing outputs.

These include branding TIKZN; clarifying its objectives and developing the means by which to market the organisation, specifically identifying what required marketing. The unit has hosted three major events that put KwaZulu-Natal on the investment map - the International Trade and Investment Conference and Exhibition in 2007 as a directive from the Department of Trade and Industry (DTI); the KwaZulu-Natal International Entrepreneurship and Investment Summit conceptualised by the provincial Department of Economic Development, Tourism and Environmental Affairs and the four East 3 Route Investment Seminar and Exhibitions since the initiative was launched in 2011 that highlighted the potential for opportunities in northern KwaZulu-Natal, southern Mozambique and Swaziland.

That initiative was originally a tripartite economic and tourism development between the three countries based on the understanding that a tourism excursion by road provided tourism operators and investors the chance to explore offerings within the three regions.

Last year the seminar was broadened to include “food, fashion and tourism” that provided selected exhibitors the opportunity to showcase innovations within these arenas. The seminar also developed an inaugural economic report publication that delved into helpful economic information pertaining to each region.

Zuma says these successes underpinned expanding the initiative to Seychelles as the fourth partner, indicating the extent to which African nations can complement each other in a campaign to attract tourists and investors to the continent.

“The province was also South Africa’s first to produce an investment guide in the form of the Investment Protocol Handbook and a basic guide for any company looking to export in the Export 101 Guide Book - achievements worthy of highlighting,” she says.

Manyakanyaka says the human resources unit only came into being in 2006, but in that time has implemented policies including training and development as well as introducing products “of which we can be proud”.

The wellness programme recognises the importance for creating a balance in life and in promoting physically and mentally healthy employees. This means adding value to employees’ lives - from nutritional information to physical assistance and assess to professional services like doctors and financial planners.

However, the years have come with their challenges too including the demand to achieve goals within limited budgets and staffing. Zuma says overcoming that issue has involved nurturing stakeholder relationships and platforms to maximise the budget.

Manyakanyaka counters there has been a balancing act between meeting employees’ needs and achieving the shareholder’s demand regardless of budget constraints. Coupled to that has been expectations that, given TIKZN is a government-funded entity, employees should have the same perks as other government department employees like medical aid and housing subsidies.

20

Human Resources

Investment in KwaZulu-Natal continues to emerge as a major contributor to South Africa’s growing economy and its favourable business environment has made the province a sound investment destination for investors from around the world.

As a small organisation, succession planning has also been an issue, leading to problems in retaining key personnel, while the attraction of Gauteng salaries and lifestyle has added its own set of complications.

Looking ahead Manyakanyaka says the corporate services unit has a clear strategy that will take TIKZN to shareholders, specifically the district municipalities, and boost awareness.

Three years ago it also opened a Gauteng office, recognising the value of having a presence in South Africa’s economic heart.

“The agency has a relevance to everyone in South Africa, but we need to explain that path and position KwaZulu-Natal as a key investment destination. The target for 2013/2014 was

attracting R1.4 billion new investments - and relishing the job creation that level would create,” he says.

Annually TIKZN aims to visit four district municipalities while also boosting its profile via public relations, effectively promoting its host of services to those they would most benefit.

“There is significant excitement about merging the two business units - the marketing element is essentially about what is being done around people - and we look forward to the day when corporate services presents a unified report under that banner and not as the two halves marketing and human resources,” the pair says.

21

Corporate Services

KwaZulu-Natal’s strategic location and highly developed industrial sector ensures a competitive edge for both local and foreign investors and unique advantages for local exports.

Stakeholder Engagement

Municipal Road Shows

Ayanda Zuma General Manager: Marketing and Communications Trade & Investment KwaZulu-Natal (TIKZN) continues to stamp authority

in the trade and investment sector and partnering with all spheres of government to support local trade and support local businesses to create and sustain employment for the people of KwaZulu-Natal (KZN). In the past year, March 2014 to March 2015, TIKZN embarked on three Municipal road shows that seek to unlock investment opportunities and create jobs across the province of KZN. The aim of these Municipal road shows is to increase awareness of TIKZN’s services and facilitate interaction between TIKZN and the municipalities to attract investment, develop strategic partnerships and create jobs throughout KwaZulu-Natal.

In the recent series of Municipal road shows TIKZN set out to uThungulu, Ugu and Amajuba Districts to host another thriving Municipal Road Show.

The first road show was held at Peermont Mondazur Hotel, San Lameer.

The programme for Ugu Municipal road show commenced with a stakeholder engagement business breakfast, which included local businesses, all local municipal representatives, members of the media and the TIKZN officials. The breakfast session was followed by the afternoon session which was facilitated by an external stakeholder that will allow the municipality and TIKZN to engage in defining engagement and cooperation mechanism that will contribute to optimal economic development in the district and local municipalities.

The second road show was the Amajuba Municipal road show. The nature of the arrangement took a different note.

22

Corporate Services

With two of Africa’s busiest ports and world-class road and rail infrastructure, KwaZulu-Natal enjoys the strategic and competitive advantage of being a global gateway for trade into Southern Africa and to the world.

On Wednesday, 11 March there was a closed stakeholder engagement session between TIKZN and Amajuba Municipality which outlined collaboration and partnership mechanisms that will effectively ensure growth in the region and the province.

The breakfast provided a platform for TIKZN and senior officials of the district and local municipality to engage with local businesses.

Amajuba District Municipality Mayor, Cllr J Khumalo strongly supported the efforts of the TIKZN municipal road show saying that, “I would like to thank TIKZN for this platform which seeks to support economic stabilisation of the Municipalities, this initiative will bear many fruits and will have substantial impact on the economic environment.

While Amajuba District Municipality

is a fertile region, unfortunately it contributes a paltry 2.2% of the total Gross Value Add of the District. It also contributes a mere 2% to formal employment. The low contribution of the agricultural sector to the District GVA has declined between 2005 and 2009, with an average growth rate of -6.7%. The gross domestic fixed capital investment for the sector between 2005 and 2009 amounted to -3%. This includes all investment in building and construction works, machinery and transport. Generally, there is under-investment in new technology, machinery and related agricultural equipments. I strongly believe that indeed this municipal road show will have substantial impact on the economic environment of this District.�

TIKZN endeavors to provide and facilitate regular engagement for district Municipalities and other toplevel business leaders in the districts to create a forum for corporate members to network across business and government; to ensure efficiency TIKZN works closely with municipalities to package and promote investment opportunities and encourage local companies to export.

In 2014, TIKZN and the South African Local Government Association, (SALGA) signed a Memorandum of Understanding (MOU) which forms part of the programme that supports the promotion of municipalities as investment friendly destinations and address any bottlenecks and red-tape that emerge.

23

Interesting Facts For the first time, KwaZulu-Natal hosted the east3ROUTE Investment Seminar in 2014.

2014

Investment Seminar I n f r a structure

Spaghetti Junction, KwaZulu-Natal

MANUFACTUR ING

Handcrafted Giraffes, Swaziland

TOURISM

Lorloz (Victorian Clock Tower), Seychelles

TRA DE

LM Prawns, Mozambique

The year 2014 saw another successful east3route edition, which is the most memorable instalment of an initiative which has assisted the KwaZulu-Natal (KZN) province to breathe life into the collective efforts to integrate the respective countries in order forge trade and commerce ties and to strengthen people to people relationships. The east3ROUTE is an initiative which seeks to promote tourism as a collective at regional level. For the first time KZN hosted the east3ROUTE Investment Seminar. The role of the east3ROUTE Investment Seminar is to provide a platform for engagement on tourism and related economic activities in this region.

Key to this is creating a dialogue between economic role players in the public and private sectors thus enabling debate on the key issues facing development in the crossborder regions. Tourism has been identified as the central aspect of this debate with related sectors such as infrastructure development, services, retail and entertainment providing important contributions.

When it started four years ago it included KZN Province, Mozambique and Swaziland. Their integrated tourism agreement was first created in 2011 by the governments of Swaziland, KZN province and Mozambique before including Seychelles as the fourth member state last year. The initiative facilitates cross-border tourism for economic development and job creation.

According to the 2014 east3ROUTE Economic Report, the purpose of the road trip is to establish strong regional bonds, share the country’s exciting topographical features and heritage, and unlock cross-border investment opportunities and synergies.

The KZN province has 14 places earmarked for tourism development. They include the

Dube Port upgrade, Eureka Solar Farm worth R1 billion and the Wild Dog Estate. “As emerging countries, we do not take the consideration of how well tourism can sustain our nations,” Mabuyakhulu said.

“We are tied together historically, geographically and economically.”

He said this initiative was meant to provide a versatile cross-border tourism experience and a focused platform for development as well as job creation.

To formalise the bond, the four countries have since formed a secretariat to incorporate an east3ROUTE tourism package and investments.

Since its inception in 2011 the east3ROUTE has not only been a tool to foster investment and trade, the east3ROUTE is indeed proving to be a purpose-built initiative for regional solidarity, cooperation and fomenting good relations between the four participating countries. In this spirit of amity; thus it is imperative to advance ambition to utilize this trade, tourism and investment pact to open new doors for the people of all member states involved – from Victoria in the Seychelles, Maputo in Mozambique, Mbabane in Swaziland and KwaZulu-Natal in South Africa.

The 2014 east3ROUTE investment seminar programme comprised of eloquent speakers and captains of the industry. Among many, these included the Mr Brian Molefe (Group CEO for Transnet), Mr Gil da Conceicao Bires (Deputy Director General for GAZEDA), Rev. Mcebo A. G. Sigudla (Survey Engineer from Swaziland Association of Architects, Engineers and Surveyors) Mr Michael Mabuyakhulu (MEC, KZN Economic Development, Tourism and Environmental Affairs) Mr Jabulani Mabuza (MEC, Swaziland Minister for Tourism and Environmental Affairs) and many more.

RICHARDS BAY RICHARDS RICHARDSBAY BAY INDUSTRIAL DEVELOPMENT ZONE INDUSTRIAL INDUSTRIALDEVELOPMENT DEVELOPMENTZONE ZONE

gateway gateway toto

world world markets markets world to

markets

The The Richards Richards Bay Bay Industrial Industrial Development Development Zone Zone (RBIDZ) (RBIDZ) is is aa purpose-built, purpose-built, secure secure industrial industrial estate estate onon the the North-Eastern, North-Eastern, South South African African coast, coast, linked linked toto the the international international deep-water deep-water port port ofof Richards Richards Bay. Bay. RBIDZ RBIDZ is is tailored tailored forfor thethe manufacturing manufacturing of of goods goods and and production production of of services. services.

The The RBIDZ RBIDZ is is deemed deemed a Special a Special Economic Economic Zone Zone (SEZ) (SEZ) and and aims aims to to encourage encourage international international competitiveness competitiveness through through world-class world-class infrastructure, infrastructure, tax, tax, VAT VAT and and duty duty free free incentives incentives to to qualifying qualifying entities. entities.

The Richards Bay Industrial Zone (RBIDZ) is a purpose-built, secure industrial estate TheThe following following sectors sectors have have been been identified identified as key asDevelopment key to economic to economic development development Available Available opportunities opportunities forfor companies companies investing investing in RBIDZ: in on RBIDZ: in the in the RBIDZ: RBIDZ: t A t gateway A gateway to to international international markets markets the North-Eastern, South African coast, linked to the internationalt Adeep-water port of Richards Bay. t *$5 BOE &MFDUSPOJDT t Processing t Processing of of Coal, Coal, Metals Metals and and Aluminium Aluminium t *$5 BOE &MFDUSPOJDT t platform A platform tailored tailored to to manufacturing manufacturing t Paper t Paper and and Wood Wood Products Products

t 4QFDJBM 1VSQPTF .BDIJOFSZ t 4QFDJBM 1VSQPTF .BDIJOFSZ

t Possibility t Possibility of of business business partnerships partnerships

t $IFNJDBMT t $IFNJDBMT t Food t Food and Food Food Products (Agro-processing) (Agro-processing) and and linkages with with well-established companies companies RBIDZ isand tailored forProducts the manufacturing of goods and production of services. The RBIDZ is linkages deemed awell-established Special Economic Zone t .BSJUJNF t .BSJUJNF t Renewable t Renewable energy energy in the in the area area (joint (joint venture venture investments) investments) (SEZ) and aims to encourage international competitiveness through world-class infrastructure, tax, VAT and duty free incentives t 0JM BOE (BT t 0JM BOE (BT to qualifying entities.

Comparative Comparative advantage: advantage: Benefits Benefits of investing of investing in RBIDZ: in RBIDZ: t Automotive t Automotive *Ocentive *Ocentive 4cheme 4cheme offered offered forfor automotive automotive component component manufacturers manufacturers The following sectors have been identified as key to economic development t 5BY BOE EVUZ GSFF SFCBUFT t 5BY BOE EVUZ GSFF SFCBUFT intthe Capital t RBIDZ: Capital Project Project feasibility feasibility programme programme forfor capital capital goods goods manufacturers manufacturers Critical t Critical infrastructure infrastructure programme programme t *$5 BOE &MFDUSPOJDT tt Processing of Coal, Metals and Aluminium t &YQPSU .BSLFUJOH BOE *OWFTUNFOU BTTJTUBODF GPS FYQPSU NBSLFU t &YQPSU .BSLFUJOH BOE *OWFTUNFOU BTTJTUBODF GPS FYQPSU NBSLFU t 4QFDJBM 1VSQPTF .BDIJOFSZ t Paper and Wood Products EFWFMPQNFOU PG 4PVUI "GSJDBO QSPEVDUT BOE TFSWJDFT EFWFMPQNFOU PG 4PVUI "GSJDBO QSPEVDUT BOE TFSWJDFT tt Food and Food tax Products (Agro-processing) t $IFNJDBMT 15% t 15% corporate corporate tax incentive incentive

t Close t Close proximity proximity to to thethe deep-water deep-water port port t Availability t Availability of of Natural Natural Resources Resources Available opportunities forPrimary companies investing in RBIDZ: t Agglomeration t Agglomeration of of Primary Producers Producers At gateway toland international markets tt Reasonable Reasonable land rentals rentals and and values values tt Mineral Mineral beneficiation beneficiation At platform tailored to manufacturing

TheThe Richards Richards BayBay Industrial Industrial Development Development Zone Zone (Pty) (Pty) LtdLtd Captains Captains Walk Walk Building, Building, Pioneer Pioneer Road, Road, Benefits of investing in RBIDZ: Tuzi Tuzi Gazi Gazi Waterfront, Waterfront, Richards Richards BayBay P OP Box O Box 712, 712, Richards Richards BayBay 3900 3900 t Automotive *Ocentive 4cheme offered for automotive component manufacturers 8IP ˆ *E\ 8IP ˆ *E\ t 5BY BOE EVUZ GSFF SFCBUFT )QEMP MRJS$VFMH^ GS ^E ˆ [[[ VFMH^ GS ^E )QEMP MRJS$VFMH^ GS ^E ˆ [[[ VFMH^ GS ^E

Comparative advantage: t Close proximity to the deep-water port t Availability of Natural Resources t Agglomeration of Primary Producers t Reasonable land rentals and values t Mineral beneficiation

t Renewable energy t 0JM BOE (BT

t .BSJUJNF

t Capital Project feasibility programme for capital goods manufacturers t Critical infrastructure programme t &YQPSU .BSLFUJOH BOE *OWFTUNFOU BTTJTUBODF GPS FYQPSU NBSLFU EFWFMPQNFOU PG 4PVUI "GSJDBO QSPEVDUT BOE TFSWJDFT

t Possibility of business partnerships and linkages with well-established companies in the area (joint venture investments)

25

investment promotions

Retaining Business for

K w a Z ulu - N a t a l

The regions strategic geographical position on world trade routes provides effortless access to major global markets, such as South America, Europe and Far East.

The 2008 global recession brought into sharp focus the need for retaining support for domestic and international investments that had already been made into KwaZulu-Natal and the precarious position world economics can play on the local situation.

Trade and Investment KwaZulu-Natal (TIKZN) export development and promotion GM Donny Pethan says it was into this environment that the business retention and expansion (BRE) unit was born as the means by which to provide critical post-investment support for those companies that had opened their doors in the province.

The agency is mandated with contributing to economic growth and development by promoting KwaZulu-Natal as the premier investment destination and the BRE unit was established to facilitate individual companies’ business expansion and retention needs.

Hence, the key focus are those sectors and industries identified in the National Development Plan (NDP) and KwaZulu-Natal Provincial Growth and Development Plan.

The unit also assists municipalities, industry associations and businesses develop linkage opportunities in a host of sectors including metals fabrications, chemicals and agro-processing, tourism infrastructure, business processing outsourcing and off-shoring (call centres), automotive,

information communication and technology (ICT), new innovations and research and development-led investments, the energy sector specifically where it develops skills and transfers new technology into the KwaZulu-Natal economy, alternative or green energy and fuel sources and industries that maximise the ports of Durban and Richards Bay, respectively the busiest and largest in Africa.

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.

“The recession affected companies’ turnovers and profitability with some being forced to reduce their workforce. Within its mandate, TIKZN has assisted numerous companies with turnaround strategies and in accessing financial assistance from institutions including the Industrial Development Corporation (IDC), while also helping other companies enter into business rescue processes,” he says.

There was also challenges to the waiting or approval time for various types of applications including the processing of business permits, incentives and funding applications.

However, more positive news was that the agency was now seeing renewed energy among companies as the country experienced a general boost in the trading and economic environment.

Last year the BRE unit assisted 15 companies - Distinctive Choice, Footwear Giants, Spell Industries and Compounders, General Cables, Zikiza Joinery, YIB Consortium, Nhloso Development Consultants, TiltUp, Bears Project, Gold-Shu Lin Clothing, Injo-Enthle Manufacturers, Laser Junction, Thekwini Wire and Fasteners, CCI Call Centre and Xtreme Rubber Industry - with their expansion and retention needs and facilitated R786.9 million in expansions for 13 companies across a host of industries from call centres to light industrial and manufacturing entities.

Collectively these initiatives created 5964 jobs - far exceeding the annual target of 700 the unit earmarked.

26

investment promotions

With two of Africa’s busiest ports and world-class road and rail infrastructure, KwaZulu-Natal enjoys the strategic and competitive advantage of being a global gateway for trade into Southern Africa and to the world.

Pethan says the unit also facilitated 15 programmes in the past year - four with municipalities, five information-sharing sessions and six business development linkage programmes - in line with developing human capital across KwaZulu-Natal.

It also assisted various companies with matters relating to their primary export market research, broad-based black economic empowerment (BBEEE) ratings, interactions with business rescue practitioners and their work and business permits.

“The unit collaborated with several stakeholders and industry associations and can proudly attest to implementing business development opportunities for a host of companies,” he says.

Participants to the Automechanika 2013 Exhibition in Johannesburg last year included Rapid Air Tools, Walter McNaughtan, Connectco, Thule Group, Rapid Truck Bodies, Crisp Air, KZN Oils, Hesto Harnesses, Kwasisonke Logistics and KwaZulu-Natal Tooling Initiative, returned positive feedback.

In June the Durban automotive cluster presented its latest research findings on the industry’s provincial benchmarking studies, while the Durban Boat and Lifestyle Show provided additional business development linkages for the eThekwini cluster, KwaZulu-Natal Sharks Board, SA Shipyards, Kwasisonke Logistics, Royal Cape Catamarans, Stealth Performance, Feral Inflatables, Ace Boating and Daycol Engineering.

In September the BRE unit travelled with KwaZulu-Natal premier Senzo Mchunu and Economic Development and Tourism MEC Mike Mabuyakhulu (who has subsequently had environmental affairs added to his portfolio) as part of a 15-company delegation to Russia. Pethan says the trade mission generated a number of leads, enquiries and opportunities in logistics, arts, crafts, banking, security services and steel fabrication - and sales for companies in arts, crafts and furniture.

“Since inception the BRE unit has assisted previously disadvantaged individuals and their companies with various

interventions; assisted companies access available grant funding; facilitated business development linkages for BBEEE companies and collaborated with a host of industry associations and sectors to ensure there has been a buy-in and support for the government’s transformation policies.

In a nutshell, it is has been instrumental in bringing about economic change,” he says.

Looking ahead Pethan says the next five years will see the unit playing its part within TIKZN to assist it achieve the key performance objectives, namely delivering effective and efficient services and supporting clients and stakeholders via job creation, spatial development, sector development and rural development.

“Through our actions and services, the unit will facilitate economic development as well as opportunities and programmes that directly benefit to improving the quality of life for the people of this province and country. We shall deliver on the TIKZN mandate and contribute to economic development by promoting KwaZulu-Natal as South Africa’s premier investment destination and leader in export trade,” he says.

Underpinning that statement, Pethan says the strategic review and planning process the TIKZN has undertaken was aligned to the government-wide monitoring and evaluation framework. That document is the overarching policy framework for monitoring and evaluation in the South Africa’s government.

It sketches the policy context for supporting frameworks like the national treasury framework for Managing Programme Performance Information and Statistics South Africa’s South African Statistics Quality Assurance Framework and is further supplemented by an outline of the legislative mandates of the various stakeholders charged with its implementation.

Pethan says the TIKZN strategic five-year plans and annual performance plans were driven by the priorities within the NDP and KwaZulu-Natal provincial growth and development plans.

Investment Promotions

Kanyi Ntloko Executive Manager: Investment Promotion

Donny Pethan General Manager: Business Retention & Expansion

Sizwe Mbanjwa General Manager: Investment Promotion

27

knowledge management

KwaZulu-Natal province was the first nationally to undertake an investment climate survey; develop an investment protocol and sign up for the provincial investment monitor.

Aligning Our Knowledge with the Province’s Investment Demands provinces rather than retaining it as a national function as had previously been the case. Internationally, the Department of Trade and Industry promotes the country, but TIKZN can present a seamless trade and inward investment promotion agency for KwaZulu-Natal.

Lumka Sibanyoni Executive Manager: Knowledge Management KwaZulu-Natal can proudly hold up its head when analysing the milestones achieved in attracting new investments to the region, boasting a significant list of firsts that undoubtedly played their part in attracting billions of rands and creating employment.

Trade and Investment KwaZulu-Natal (TIKZN) came into being following the national government’s decision to divulge investment promotion to the

The agency hails the region as an investment destination and facilitates trade by assisting local companies 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 and this highlight the regions across the province most applicable for individual domestic and international investors.

However, TIKZN Executive Director knowledge management Lumka Sibanyoni says in achieving these milestones, the agency has worked tirelessly to share knowledge on the region. This has included introducing publications like Emnothweni and Ezomnotho in collaboration with the now-named provincial Department of Economic Development, Tourism

and Environmental Affairs (the latter introduced after the May 2014 general elections); introducing policy advocacy; establishing appropriate project packaging; establishing a resource centre for investors and stakeholders; developing renewable energy maps for investment purposes; establishing a green economy blog in line with global demands for information on environmentally-friendly resources and activities and 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.

“As an information-driven organisation, knowledge management is central to our success. That information originates from research, government policies and the media and it is in analysing that information in line with the sectors identified as providing KwaZulu-Natal with a competitive advantage that potential investor packages can be compiled,” she says.

28

knowledge management According to statistics, South Africa’s 2011 mid-year population estimates, the province of KwaZulu-Natal is the second most populous province following the Gauteng province.

The knowledge management unit enhances TIKZN’s research and knowledge capabilities to effectively disseminate comprehensive business intelligence to stakeholders. This incorporates information and research; sector intelligence development and project and deal structuring.

It also improves the organisation’s effectiveness and efficiency via IT. Research can be formal and 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 are key to that research with TIKZN working alongside municipalities, educational institutions and other provincial agencies to secure the answers.

Projects can then be packaged by identifying focus areas; building on competitive advantages and not ignoring the benefits for developing in rural areas. Sibanyoni says one opportunity evolved from the announcement that a motor manufacturer wants to build lighter vehicles, paving the way for proposing investments into fibre crop production for the door panels.

However, she acknowledges the years have not been without hardships, most notable was the death in a car accident in the Democratic Republic of the Congo (DRC) of research manager Ananias Makhado. While other staffing issues have been resolved over the years, his loss is still felt by his colleagues.

Since the unit’s inception, Sibanyoni says there have been several highlights instrumental in promoting South Africa’s democracy. First among them was ensuring broad-based black economic empowerment (BBEEE) inclusivity in investment opportunities - a move that has expanded the participation of South Africans within the formal economy and assisted in improving the quality of life and chances for fighting poverty for thousands of people.

The unit has aligned its packaged projects with government priorities, key among them being the National Development Plan (NDP) and the KwaZulu-Natal Provincial Growth and Development Plan.

The NDP aims to eliminate poverty and sharply decrease inequalities by 2030 and that means everything within its plan attacks poverty and exclusion; nurtures economic growth; creates expansion opportunities; builds capabilities and involves communities in their own development - in a nutshell, boosts living standards.

The medium-term impact translates into a rising economic confidence and opportunities for individuals and South Africa more broadly. However, the government acknowledges the NDP can only achieve its objectives if the policy enjoys broad social support and consent - and that requires the

government and society working together, grasping a united responsibility for improving and implementing the NDP. “While the numbers (like the Gini co-efficient) provides important targets, peoples’ views and voices need to be heard; their contributions valued and the poor majority accorded the same dignity and respect as the more fortunate members of society,” the NDP document states.

The Provincial Growth and Development Plan addresses how KwaZulu-Natal will deal with poverty, inequality and unemployment and sets out a 20-year vision and direction for achieving that objective. The document serves as the overarching strategic framework development for KwaZuluNatal, applying the spatial context and priorities; guide to activities and resource allocations; establishing clear institutional arrangements to secure buy-in and ownership; offering a strategy for ownership with provincial government departments and KwaZulu-Natal branches of state-owned enterprises tasked with implementing the Provincial Growth and Development Plan and outlining structured consultations within agreed institutional frameworks and budgetary allocations and commitments.

Sibanyoni says in facilitating their achievements, the unit has boosted its staffing and budget resources and been repositioned to greater influence the organisational mandate - effectively positioning TIKZN as “the knowledge partner in business”.

She believes in the next five years, the unit can raise its influence on TIKZN’s strategic direction, effectively promoting greater collegiality between the organisation’s various operation units. Underpinning that achievement would be further enhancing the IT systems in line with global trends.

“Building on the achievements in the past decade will involve ensuring the knowledge management unit continues delivering on the corporate strategy and building on the impact TIKZN makes in boosting economic growth and development in KwaZulu-Natal,” she says.

29

investment promotions

Manufacturing is a major contributing economic sector in KwaZulu-Natal, generating 15.0% of provincial employment and contributing an average of 18.3% to the GDPR between 2007 and 2012.

Speaking to the

Heart of TIKZN

Consequently, she welcomes the newly-created Department of Small Business Development as a focused approach to identifying different levels within the business and their differing support needs.

16,576

“It is essential that South Africa gets its manufacturing to globally competitive levels as we are competing against the Chinese, French and Japanese who already have a significant stronghold in Africa,� she says.

Investment promotion General Manager Sizwe Mbanjwa says the Department of Trade and Industry (DTI) has shown via policies and commitments a strong drive for South Africa to industrialise. This has included compiling attractive investment and expansion packages, while linking growth opportunities to SMEs to maximise the economic impact.

He believes Durban has anchored its status as a call centre specialist, attracting a host of business processing operators to the region and creating employment for thousands of school leavers. The next step was bringing to the region the back office technical support for these centres that employed graduates.

1,065 1,172 2,600 2,800 8,000 1,240

2,700

Into that argument is the honesty that SME success and job creation demands the right environment for business incubation.

This meant replicating the SmartXchange model that develops and supports small information technology business through world-class incubation and skills development across a host of industries and geographic regions.

Adds Mbanjwa, it means recognising KwaZulu-Natal has pockets of excellence, but that building on these successes requirements proper incubation and attention to the smaller details.

Export development and promotion general manager Donny Pethan says the 2008 recession brought into sharp focus retaining support for domestic and international investments already been in the province and the precarious position world economics played locally.

It was into this environment the Business Retention and Expansion (BRE) unit was born to provide companies with critical post-investment support.

Trade & Investment KwaZulu-Natal (TIKZN) has at its heart the desire to accelerate direct domestic and foreign fixed investments, particularly large-scale ones over R50 million that boost economic growth and create the yearned-for employment opportunities the province demands.

Year

No. of projects

Investment amount

Jobs created

2007

7

R603 million

2800

2008

11

R973.4 million

1065

2009

6

R961 million

1172

2010

9

R855.8 million

2600

2011

4

R1.1 billion

1240

2012

7

R1.591 billion

8000

2013

9

R1.4 billion

2700

Total

83

R7.48 billion

16576

Source: TIKZN annual reports

30

investment promotions

KwaZulu-Natal enjoys a dominant share of the domestic tourism market and a steadily growing share of South Africa’s international market, attracting some 1.0-million foreign visitors and 9.0-million domestic tourists annually.

However, the proof of that achievement will always be reflected in the numbers and when analysing the annual performance reviews, it is obvious why KwaZulu-Natal Economic Development, Tourism and Environmental Affairs MEC Mike Mabuyakhulu has said the agency has emerged as “an institution worthy of its existence”.

Since 2007 the inward investment agency has attracted 53 new investments worth R7.48 billion and has been instrumental in facilitating nearly 16600 new employment opportunities, despite the constraints of budgets, expectations and the global recession.

“In recent years our mandate has become increasingly clearer and the approach more structured and targeted. It is our responsibility to promote and facilitate foreign direct investment; retain and expand domestic investments and meet the annual targets set in these regards,” Executive Manager Investment Promotion, Kanyi Ntloko-Gasa says.

Within that context has been the requirement for the agency to “move with the times and meet the market’s demands”. Practically this came to the fore during the recession when TIKZN realised the value of investment aftercare and could assist distressed companies and identify other opportunities beyond growth and expansion that hopefully prevented them from closing their doors.

Destination Marketing Manager Claude Pretorius says inherent in the agency’s mandate is ensuring “people know where we are” and that among the biggest challenges has been making investors aware of KwaZuluNatal as an investment destination.

“Everyone knows about Cape Town and Johannesburg, but mix up Durban with Dubai despite KwaZulu-Natal being South Africa’s second-largest economy and offering investors a sound logistics platform in two sea ports and the Dube Trade Port,” he says.

Yet, the positives speak loudly in the region having the second-largest manufacturing base; being geographically positioned such that 65% of imports and exports pass through its borders; has lower labour costs than Europe and offers an opportunity to export from South Africa using its logistics advantages.

investment promotions

31

KwaZulu-Natal is also amongst the best watered regions in the country, with ample water resources from well-established storage dams, supplemented by natural lakes.

Investors are assured of excellent quality water for industrial use at comparatively low tariffs.

There was also the benefit that the world has “discovered” Africa and the continent is experiencing a significant growth in foreign direct investments - one of the reasons some of its countries have experienced double-digit economic growth.

Pretorius says highlighting KwaZulu-Natal as an investment destination calls on skills that leverage existing investors to grow the current asset base and finding new opportunities by strengthening the relationships where South Africa has a sound foothold - China, India, UK, US, Germany and Japan remain key markets.

It means thinking more broadly by attracting new investors by leveraging off their competitors or related industries. Toyota posed a hook to attract other car manufacturers as well as motor vehicle component producers.

“However, we can never lose sight of the reality that investors follow the profits, so while capitalising on the low-hanging fruit is essential, we need to consider world trends and look at investment leaders to learn from their successes,” he says.

Singapore has shipping; Turkey a manufacturing base and African nations the knack for attracting supermarket chains into their midst to capitalise on the burgeoning middle-class and increasingly brand-conscious consumers, many of them youth.

Quips Pretorius, KwaZulu-Natal must use its manufacturing and logistics platforms to take advantage of the needs in other African countries.

Adds Ntloko-Gasa, Africa posed the greatest opportunities for expansion, offering the world “a new investment frontier”. South Africans understood the political and economic dynamics within the Southern African Development Community (SADC), thus providing a key platform from which to export and supply into the region.

“Manufacturers should expand their base by identifying what the African market is demanding.

This is our chance to boost small and medium enterprises (SMEs) so they can play in this market and shift South Africa’s economic structure to more securely rely on a segment driven by innovation,” she says.

32

investment promotions The Durban Container Terminal (DCT) is the biggest and busiest in South Africa and currently handles 64% country’s sea-borne container traffic.

The unit assists municipalities, industry associations and businesses to Develop-linkage opportunities in metals fabrications, chemicals and agroprocessing, tourism infrastructure, business processing outsourcing and off-shoring (call centres), automotive, information communication and technology (ICT), new innovations, research and development-led investments, the energy sector where it develops skills and transfers new technology, alternative or green energy and fuel sources and industries maximising Durban and Richards Bay ports, respectively the busiest and largest in Africa.

Since 2009 the unit has assisted in implementing interventions in terms of companies’ respective business development needs and business linkages.

“The recession affected turnovers and profitability with some companies forced to reduce their workforce. TIKZN has assisted numerous companies with turnaround strategies and in accessing financial assistance from institutions including the Industrial Development Corporation (IDC), while helping others with business rescue processes,” Pethan says.

More positively the agency was now seeing renewed energy among companies as the country experienced a general economic boost.

Last year the BRE unit assisted 15 companies Distinctive Choice, Footwear Giants, Spell Industries and Compounders, General Cables, Zikiza Joinery, YIB Consortium, Nhloso Development Consultants, Tilt-Up, Bears Project, Gold-Shu Lin Clothing, InjoEnthle Manufacturers, Laser Junction, Thekwini Wire and Fasteners, CCI Call Centre and Xtreme Rubber Industry - with their expansion and retention needs and facilitated R786.9 million in expansions for 13 companies in industries from call centres to light industrial and manufacturing entities.

Collectively these initiatives created 5964 jobs - far exceeding the 700 annual target.

Pethan says the unit also facilitated 15 programmes in 2013 - four with municipalities, five informationsharing sessions and six business development linkage programmes - to develop the human capital and helped companies with export market research, broad-based black economic empowerment (BBEEE) ratings, business rescue and business permits.

Participants to the Automechanika 2013 Exhibition in Johannesburg included Rapid Air Tools, Walter McNaughtan, Connectco, Thule Group, Rapid Truck Bodies, Crisp Air, KZN Oils, Hesto Harnesses, Kwasisonke Logistics and KwaZulu-Natal Tooling Initiative.

investment promotions

33

Dube Trade Port, home to King Shaka International Airport, is the single largest infrastructural investment project in KwaZulu-Natal and is a Green-field airport-related development.

In September the unit accompanied a 15-company delegation led by Mabuyakhulu and KwaZulu-Natal premier Senzo Mchunu to Russia. The mission generated numerous leads, enquiries and opportunities in logistics, arts, crafts, banking, security services and steel fabrication - and sales for companies in arts, crafts and furniture.

“Since inception the BRE unit has assisted previously disadvantaged individuals with various interventions; helped companies access grant funding; facilitated business development linkages and collaborated with industry associations for buy-in on the government’s transformation policies. In a nutshell, it is has been instrumental in bringing about economic change,” he says.

He says the next five years will see the unit playing its part to assist KwaZulu-Natal achieve its key performance objectives delivering effective and efficient services and supporting clients and stakeholders via job creation, spatial, sector and rural development.

Underpinning that statement is the strategic review and planning process the TIKZN has undertaken alignment to the government-wide monitoring and evaluation framework. That document is government’s overarching policy framework for monitoring and evaluation.

It sketches the policy for supporting frameworks like the national treasury framework for Managing Programme Performance Information and Statistics South Africa’s South African Statistics Quality Assurance Framework and further outlines the legislative mandates of various stakeholders charged with its implementation.

34

FINANCE

In Durban, at least 80% of all households have access to basic services (water, sanitation, electricity, and refuse removal), business coverage is 100%. Durban is also home to one of the busiest ports in Africa.

Working Smarter

fulfils its mandated policy as a standalone agency within the Department of Economic Development, Tourism and Environmental Affairs.

“In enforcing a policy for working smarter, the unit provides TIKZN with guidance in terms of its spending requirements; retains strict financial management and avoids wasteful expenditure and assists the organisation in achieving its targets,” Nyamande says.

Lingiwe Nyamande Chief Financial Officer Cost containment has become the key driver behind companies working and spending their budgets in a smarter fashion - and when the entire annual operating budget for a statefunded agency tasked with attracting and retaining inward foreign direct investment to KwaZulu-Natal is R75 million, the incentives to use that capital to its maximum effect are significant.

Trade & Investment KwaZulu-Natal (TIKZN) Chief Financial Officer Lingiwe Nyamande says since inception the organisation has grown three-fold to around 60 in its employee figures and has seen a requisite nominal increase in its operating budget from R20 million in 2003/2004. However, that growth has also gone hand-in-hand with increasing pressures on resources, more activities and greater initiatives pursued as it

In the 2013/2014 those targets included attracting R1 billion in new investments - a figure exceeded by 40% in the year under review given TIKZN facilitated nine new investments worth R1.4 billion. It also facilitated new markets for local companies, resulting in export orders exceeding R35 million - again a significant figure, specifically when dealing with small, medium and micro-enterprise (SMME) companies whose primary focus was on trade and exports.

When these investments are fully operational, more than 2700 jobs will be created. TIKZN CEO Zamo Gwala says, in particular, two committed projects in the agriculture and tourism sectors, had a combined value of R38 million and the potential to create 80 jobs.

The agency’s vision is contributing to economic development by promoting KwaZulu-Natal as South Africa’s premier investment destination and the leader in export trade. Translating

that into a mission statement means identifying and packaging provincial investment opportunities; branding and marketing KwaZulu-Natal as an investment destination; linking probable investment opportunities to community development needs and comparative advantages and ensuring potential investors that there is an easy access to investment and export trade opportunities.

The guiding principle remains the TIKZN Act 5 of 2010 that empowers the organisation as the provincial entity tasked with promoting foreign direct investment to KwaZulu-Natal and assisting local companies assess national and international markets.

Nyamande says there have been several challenges within that mandate, including internal capacity issues like the small business unit that has doubled its original manpower to six people and still has room for expansion.

Beyond Nyamande, the finance unit operates with one financial accountant, one financial officer, one payments officer, two supply chain managers or procurement officers, one facilities officer and one general assistant and is tasked with ensuring proper financial management; the procurement of goods and services; efficient and effective budgeting; working towards achieving a clean audit and providing assistance and advice to the various departments within TIKZN - “in a nutshell, appropriately spending funds where they are required”.

35

FINANCE A total of 6.5million hectares of land are used for farming in KwaZulu-Natal of which 82% is suitable for livestock production and 18% regarded as arable land.

However, the global recession has impacted on the unit’s operations as well as the agency’s ability to fulfil its mandate as investors have unilaterally slashed their exports, expansion prospects and forays into foreign markets. Handling these issues has demanded a tight monitoring of procurements and financial management.

“Across the organisation people have been forced to reprioritise. One example was the view to targeting the BRICS (Brazil, Russia, India, China, South Africa) member states given South Africa’s inclusion into that economic trading bloc, but those plans have been pushed out to the next period or evolved into another option closer to home since those prospects better fit the budget and the current climate,” she says.

She adds it “is the small things” that add up to making the budget work efficiently and effectively and thus maximises the allocation available for pursuing the mandate. Economy class travel; small or medium-sized motor vehicles purchased for the company fleet or as company cars; limited spending on consultants when inhouse skills are available; capitalising

on partnerships that can share costs for projects and initiatives and holding meetings biennially rather than annually each contribute to stretching the funds.

corruption and fronting”. However, Nyamande wants to see more progress for SMMEs to grow and tender on larger, more complex, projects.

“Promoting democracy has meant ensuring our funding is spent appropriately and transparently, effectively eliminating wasteful expenditure. Each element affects how productive the agency can be in terms of growing trade and investment into KwaZulu-Natal,” she says.

“In achieving this goal, we are growing this economic segment by assisting SMMEs both with their problems and their work opportunities,” she says.

Procurement policies have been another arena in which the finance department has played a part in translating democracy into real terms for local businesses. Nyamanda says their policies have effectively assisted smaller businesses to grow sales and boost their development potential.

She believes within five years TIKZN can achieve a clean audit “without even thinking it was not a possibility” when scrutinised by the Director-General, as this would reflect its ability to manage public funds and resolved supply chain management issues.

The organisation received a clean audit for 2013/2014, reflecting “we are implementing endeavours to remove

Beyond this is helping the organisation better package investment projects.

According to the South African Revenue Service (SARS), the country’s export merchandise amounted to R709.2 billion last year - a new record over the R668.5 billion recorded in 2011.

Goods traded into the rest of Africa increased by 20% to R128 billion, while the growth in South African imports from other parts of the continent was 43.3%.

Nyamande says while this was off a low base, shifting from R57.8 billion to R82.8 billion, it indicates a growing mutually beneficial trade among African states - and with plans to improve the region’s infrastructure and connectivity, there are substantial opportunities for the continent to craft its opportunities and for TIKZN to play a role in that, with its investment packages.

36

Interesting Facts

Trade & Investment KwaZulu-Natal regularly hosts inbound trade missions which provide an ideal, cost-effective way of meeting international companies and representatives from the industry.

TIKZN GAUTENG OFFICE: 2014/2015 in review:

Trade & Investment KwaZulu-Natal (TIKZN) Gauteng Office had a great year promoting TIKZN as an inward investment destination and export trade opportunities in liaison with respective units. The major function of the Gauteng office is business development (lead generation and handover), stakeholder management, and destination marketing to improve marketing and image building with national and international stakeholders. The office works closely with all units and in 2014 hosted several successful initiatives namely: • Hosting of an Italian delegation together with the SAItalian Chamber focused on cosmetics and automotive component manufacturing.

• A High-level event with the South African Netherlands Chamber where Ambassadors from European Union and SADC together with private companies to discuss PanAfrican exports • The TIKZN flagship International Organisations Event with the Diplomatic Corps where strategic developments of the projects are showcased to 100 Ambassadors and trade commissioner.

• An event was held with the Nordic South African Business Association where key aspects of the economy and trends were debated together with the senior political economist from Standard Bank

Successful sector based events were held with respective units: • Value added programme support for the exporters at the South African International Trade Exhibition in liaison with EDPU • Showcasing of all projects and KZN programmes available for the renewable energy sector in liaison with KM and IP • Introduction of the KZN BPO value proposition to a targeted audience in liaison with IP • Hosting of a round –table with several representatives from international banks to discuss potential for the establishment of a dedicated KZN Renewable Energy Fund in liaison with KM • Showcasing of the TIKZN “Papwa” Film Project in liaison with IP. TIKZN assisted development of script for the proposed film. The golfer won 3 Dutch opens. TIKZN was provided the opportunity to sponsor the South African Netherlands Chamber golf day which provided a four –ball where Rajen Sewgolam, Papwa Sewgolam’s son played in the TIKZN four-ball and was provided a speakership opportunity to outline the story of his father, Mr. Papw Sewgolam who won 3 Dutch opens and has a reverse grip. The book was officially launched at this event.

• Creating a stand at “Africa Outlook” which was attended by international DFIs, international investors etc for lead generation in liaison with IP and EDPU

Interesting Facts

37

Trade & Investment KwaZulu-Natal regularly hosts inbound trade missions which provide an ideal, cost-effective way of meeting international companies and representatives from the industry.

Most imminent leads handed over to IP include BPO, Agribusiness, Rail, Housing and Automotive Component, manufacturing sectors from the UK, Denmark, France , Finland and Thai markets. Most imminent leads provided to EDPU were in the agricultural, building materials and technological cooperation from the following markets e.g.

France, Dubai and Switzerland.

The Gauteng Office participated in business generation activities in the USA, Malaysia and Dubai and several leads have been generated and handed over from the region and also facilitated participation of 27 delegations to KwaZuluNatal.

The Gauteng Office is represented on 2 boards namely the European Union Chamber of Commerce in SA and as Chairperson of the Nordic South Business Association which will further contribute to lead generation.

Gauteng office manager Donnee Kruger says in the past six years their endeavours have generated R1.2 billion from a host of projects including Nantong Sen Li Da Fibres (R80 million), Umgeni Water (R340.8 million), banking group Lloyds TSB (R90 million), Brodskie Consulting (R123 million) and Cappenny Estates (R18.5 million) and created 1488 new jobs. Several leads have become pipeline projects, while the office has hosted 55 sector-specific foreign investor sessions.

Another 141 inwards missions have been hosted in Gauteng.

From an export perspective, the office has provided support via capacity building programmes and market development programmes that have created awareness on export trade promotion activities; referred trade enquiries from wholesalers, buyers and trade offices; lobbied support for outward selling missions; passed on country-specific market intelligence and hosted events with trade offices, buyers and wholesalers.

“The office has also raised its visibility with the diplomatic corps and international organisations with this year’s annual event hosting 135 representatives from 92 countries. The function updates strategic developments and generates a significant amount of business,” Kruger says.

She says the office was initially founded to target inbound foreign delegations that omitted KwaZulu-Natal from their itineraries and thus generate relevant leads and channel business to the province. Included in that mandate was marketing KwaZulu-Natal and building its image as a premier investment location with strategic partners like embassies, chambers of commerce and head offices of Gauteng-based companies.

However, she acknowledges that in the past year foreign direct investments to South Africa have dropped 24% according to the World Investment Report while paradoxically seeing an increase in investments to the renewable energy sector. Going forward South Africa will fiercely compete for a slice of a decreasing investment pie and that means “playing the game very cleverly ... we have to make sure we have an attractive investment environment and remain pro-active in engaging with potential investors”.

38

Interesting Facts The theme for 2015 GIBS/ECR Business Breakfast was “Finding your Frequency”

2015 GIBS Business Breakfast: Serame Taukobong posed this thought-provoking question: do you need to find your frequency or does your frequency find you? He drew on his extensive marketing, operations and sales experience as he shared his personal journey and the life and business lessons he gleaned along the way. Serame, who was the brain behind MTN’s famous, award-winning Ayoba campaign, challenged everyone to “the best you can be at whatever it is you do.”

Dion Chang used his time in the spotlight to talk about the business of disruption. Dion, who specialises in tracking shifting social dynamics and translating global trends to ensure relevance for South Africa, discussed the ripple effect of game-changing technologies and how they’ve changed businesses. Trendy himself, Dion drew gasps from the audience as he outlined the technology changes on the way and how they will impact on various business sectors.

KwaZulu-Natal’s corporate elite gathered at Durban’s ICC on 3 March 2015 for one of the most anticipated events on the provincial business calendar. Trade & Investment KwaZuluNatal presented the GIBS East Coast Radio Business Breakfast, giving the 500 attendees the chance to take home key learnings from four of South Africa’s influential thought leaders, forward thinkers and strategists.

Hosted by East Coast Breakfast’s Darren Maule, the event themed Find Your Frequency, featured the Dean of the University of Pretoria’s Gordon Institute of Business Science (GIBS), Nick Binedell; the Chief Executive Officer of MTN Ghana, Serame Taukobong; corporate trend analyst, Dion Chang of Flux Trends; and award-winning master storyteller and a prominent figure on the SA culture and entertainment scene, Dr Gcina Mhlope. Under the theme, Find Your Frequency, lessons were shared and knowledge was imparted.

Nick Binedell kicked off the session, drawing on his vast knowledge of strategic leadership to talk about how businesses need to find their authentic frequency to remain relevant amidst the rapid changes within our economy.

Using personal anecdotes and his trademark humour, Nick emphasised the importance of innovation when it comes to finding out your distinctive point of reference and what the market wants you to do that is different from your competitors.

Interesting Facts

39

KwaZulu-Natal is host to five Original Equipment Manufacturers (OEM’s), including Toyota South Africa. Toyota’s facility, south of Durban, is one of the most technologically advanced Toyota facilities in the world, capable of producing some 200 000 units a year.

Finding Your Frequency The morning rounded off in dramatic style when award-winning performer and SA cultural stalwart, Dr Gcina Mhlophe, had the audience riveted. The Durban author and playwright fired imaginations with her skilful use of poetry and storytelling as she challenged individuals and businesses into owning up on whether they have done significantly contributed to making a difference in South Africa. “We are more alike than we are different,” she stressed as she drummed home the importance of successful corporates and individuals giving back to the communities they operate or live in.

However the morning wasn’t all about power suits, insights, networking and bold lessons. Darren’s banter revealed why he is one of the country’s best-loved comedians, a “praise singer” roused the audience ahead of each speaker, and dancers spiced up the event, raising energy levels with their high octane performance

2015

MAJOR EVENTS MAY

JULY

9-11

6-12

Tourism Indaba ICC Durban

Connecting Africa KwaZulu-Natal (All 11 Districts)

4

31

Vodacom Durban July Greyville Racecourse, Durban

East3ROUTE Investment Seminar Mahe Island, Seychelles

Zambia

Zimbabwe

South Africa

SEPTEMBER 20-22

World Routes Africa ICC Durban

KZN

OCTOBER 26-30

Export Week Durban

“DUBE ICONNECT GAVE US

THE OPPORTUNITY TO SKYROCKET OUR BUSINESS INTO THE CLOUD. THE INFRASTRUCTURE INSTALLED HERE IS GENUINELY WORLDCLASS.” Rajesh Harie, Managing Director and Kelvin Jones, Cloud Solutions: Global Z-Data www.gzd.co.za

Global Z-Data, which has been around for 15 years, started out as a break-and-fix company, but always aimed to be a Cloud and IT services business. We chose Dube iConnect as the only service provider which gave us everything we needed; exceptional capabilities, ease of doing business, commitment and, importantly, the value of infrastructure at a price a small business is able to afford. Our decision and Dube iConnect’s infrastructure allowed us to quickly ramp-up the business, modifying our offering to fully-managed cloud solutions within a month and taking us to a new level of agility. Dube iConnect has proved an enabler for our business and for our diverse clients, active across the legal, financial, retail and manufacturing business segments.

Being based at a national key-point provides the peace-of-mind of both security and ease of accessibility.

For further endorsements, go to www.dubetradeport.co.za/stories To experience what Dube iConnect has to offer, email: info@dubetradeport.co.za

ONE GOAL: TO MOVE YOUR BUSINESS FORWARD www.dubetradeport.co.za

CUBE/597/FM/EAGR

R

YOU’RE AN EXPERT IN YOUR BUSINESS WE’RE EXPERTS AT OURS. w

w

w

.

t

i

k

z

n

.

c

o

.

z

a

YOU’RE AN EXPERT IN YOUR BUSINESS. WE’RE EXPERTS AT OURS.

Let’s face it, no one understands your business better than you We can help you with the facilitation of joint ventures and linkages do.That’s why, if you want expert advice and support on doing between investors and local business; the provision of relevant, business in KwaZulu-Natal, you should turn to Trade & Investment reliable information to investors and traders; assistance with KwaZulu-Natal, because no one understands our business better applications for investment incentives and export marketing than we do. When it comes to doing business in our province, we incentives; assistance to foreign investors with applications for offer expert advice and support on all aspects of investment business permits; negotiation of local government incentives on promotion, export development and promotion, and business behalf of investors; provision of project support and aftercare services; assistance to emerging international traders and with retention and expansion.

Let’s face it. No one understands your business better than you do. trade enquiries; assisting investors to locate suitable That’s why, if you want expert advice and support on doing business international in KwaZulu-Natal, you will turn to Trade & Investment KwaZulu-Natal, because premises and to secure project and operational financing. no one understands our business better than we do. When it comes to doing business in KwaZulu-Natal, we offer expert advice and support on all aspects of investment promotion, export development and promotion, business retention and expansion.

We can help you with the facilitation of joint ventures and business linkages between small and big business; the provision of relevant, reliable information to investors and traders; assistance with applications for investment incentives and export marketing incentives; assistance to foreign investors with applications for business permits; negotiation of local government incentives on behalf of investors; provision of project support and aftercare services; assistance to merging international traders and with international trade enquiries; Assisting investors to locate suitable premises and to secure

Durban Office Trade and Investment House 1 Arundel Close Durban, 4001, South Africa PO Box 4245, Durban, 4000 +27 (0) 31 368 9600 +27 (0) 31 368 5888 info@tikzn.co.za www.tikzn.co.za

Gauteng Office 99 George Storrar Avenue Groenkloof, Pretoria +27 (0) 12 346 4386/6763 +27 (0) 86 501 0848/1788 info@tikzn.co.za www.tikzn.co.za