HO TH T E P OF RE F SS
east3ROUTE October 2014
Foreword by the KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Mr Michael Mabuyakhulu
I
t is now four years since the founding governments established the tripartite economic and tourism development initiative known as the east3ROUTE, the mandate of which has been to leverage strong regional bonds, the region’s exciting topographical features and the existing blend of cultural and historical heritage, to unlock cross border investment opportunities and synergies. The tripartite east3ROUTE bloc originally consisted of KwaZulu-Natal - South Africa, Mozambique and Swaziland. Last year, however, the member countries accepted Seychelles into the grouping resulting in the island-state enjoying limited participation in the annual Investment Seminar which, for the 2013 instalment, included an exhibition. We are all pleased to note, that in this fourth edition of the east3ROUTE Investment Seminar, Seychelles will participate fully thus enjoying equal status within the grouping and reaping the full benefits that membership bestows upon member states. The east3ROUTE initiative is important for many reasons. South Africa is the main trading partner for Mozambique, Swaziland and one of the main trading partners of the Seychelles. We are tied together historically, geographically and economically and the initiative provides a focused platform for the member nations to expand their developmental mandates, ultimately strengthening economies, creating sustainable jobs and improving living standards. In order to understand the opportunities available to us we need to have access to contemporary research and data, profiling and analyzing linkages that can be leveraged to yield tangible outcomes. Such research must provide a blueprint for the investment community outlining in detail the trade and investment regulatory environment, incentives, existing bilateral agreements, barriers to entry and details on the respective regulatory environments. We are therefore pleased to inform the east3ROUTE delegates and government representatives that the investment seminar
organising team led by Trade & Investment KwaZulu-Natal commissioned a study that will provide the necessary blueprint referred to above. Give our close economic bonds it is imperative we strengthen trade and investment within the east3ROUTE community. Harnessing synergies and leveraging each other’s strategic strengths and experiences makes us more efficient and competitive within the global context. We are fortunate though that each of the east3ROUTE member nations is uniquely positioned to offer the regional and international investor community attractive investment possibilities. From 2005 to 2010, South African investments into Mozambique were estimated at R3.5billion. The biggest of these include companies such as Mozal, Sasol, SAB, Vodacom and Standard Bank, among others. Mozambique is South Africa’s second largest export market with trade having increased dramatically over the past five years. A significant portion of Mozambique’s economic growth is driven by capital-intensive export sectors and foreign investment projects in the mining sector and aluminium smelters, which have also led to growth in the services and construction sectors. The industrial and services sectors contribute 30,9% of GDP and 45,6% of GDP, respectively. Mozambique’s agricultural sector contributes 23,5% to the country’s GDP. Swaziland’s largest trading partner is South Africa, from which it receives more than 90% of its imports and to which it sends 60% of its exports. Subsistence agriculture employs approximately 70% of the population. Sugar and wood pulp were major foreign exchange earners and sugar is now the main export earner. The manufacturing sector has diversified since the mid-1980s. Other key sectors that drive the economy of Swaziland are textiles and apparel as well as food and beverage. The main exportable commodities are soft drink concentrates, sugar, wood pulp, cotton yarn, refrigerators, citrus and canned fruit. Swaziland imports motor vehicles, machinery, transport equipment,
foodstuffs, petroleum products and chemicals. The economic makeup of Seychelles is reportedly 2% agricultural, 18.7% industrial and 79.4% services. The country’s main trading partners are Saudi Arabia (24%), Spain (12.1%) and France (5.9%), with South Africa positioning itself as the fifth largest source market for the Seychellois’ import demand. Seychelles is one of the most successful African stories, with an unemployment rate of 2%. The main economic sector in Seychelles is tourism. While in other parts of the world investment promotion is focused on inward investment, South African companies focus on outward investments on the African continent. KwaZulu-Natal is a major role player in both manufacturing, transport and logistics sectors in South Africa, with world class infrastructure that supports export led companies. The province enjoys the strategic competitive advantage of being a global gateway for trade into Southern Africa and the world. Its strategic location and highly developed industrial sector ensures a competitive advantage for investors and exporters alike. Key subsectors include aluminium, mineral processing, motor vehicle manufacturing, pulp and paper products, chemical and petro-chemicals and food and beverages. Manufacturing is a major contributing economic sector in KwaZulu-Natal, generating 15.0% of provincial employment and contributing an average of 19.2% to the GDPR between 2006 and 2010. The sector contributed 16.8% to the provincial GDPR in 2010. KwaZulu-Natal’s manufacturing sector is the second largest in the country, making the region an ideal destination to locate manufacturing businesses, whilst enjoying government incentives and support from the well-established sector. One seminar. Four countries. A wealth of possibilities! For the 2014 edition we have gathered, once again, an ensemble of high powered speakers, experts in doing business in Africa and helping the region unlock investment opportunities.
2
east3ROUTE October 2014
IN THE BEGINNING... HISTORY OF THE east3ROUTE INITIATIVE
T
he first east3ROUTE was inaugurated on 26 September 2011 by the governments of South Africa (KwaZulu-Natal), Swaziland and Mozambique to promote and accelerate cross-border economic activity and especially tourism, in the region. Leaders from South Africa (KZN), Mozambique and Swaziland partnered to showcase the investment appeal the three respective regions. The 2011 east3ROUTE Initiative attracted more than 250 delegates who started their expeidition froom the Isimangaliso Wetland Park in St Lucia, KwaZulu-Natal, then travelled to Ponta Do Ouro, Mozambique and
T
ended their journey in Mbabane, Swaziland. This year sees the fourth instalment of the east3ROUTE excursion. Starting in KwaZulu-Natal, the 7-day and 6-night expedition will again traverse the three regions moving on to Swaziland and culminating in Mozambique. The 2014 edition also sees the full participation of The Republic of Seychelles. The investment component of the east3ROUTE initiative was integral to the whole expedition in 2011. In 2012, the east3ROUTE Investment Conference was held for the first time as a standalone sub-event. The plan was to host the first event
in Maputo, Mozambique, and in subsequent years to host the one-day event in a different country, allowing each host country a showcase opportunity while still incorporating participation of the other two partners. Trade & Investment KwaZulu-Natal (TIKZN) acted as the custodian and organiser of the first and remains in the same role for the third event in 2014. There was further consensus that the investment component needed to have a stronger investment and regional development focus and out of this emerged the current and improved evolution dubbed: the east3ROUTE
Investment Seminar & Exhibition. The role of the east3ROUTE Investment Seminar & Exhibition 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 sector thus enabling debate on the key issues facing development in the cross-border 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.
TRADE SUCCESSES FROM east3ROUTE 2013 SEMINAR
he 2013 edition of the investment seminar saw an introduction of a trade exhibition with exhibitors being transported from around South Africa, KwaZulu-Natal and Mozambique to exhibit at the seminar.
1. Assagay Coffee Assagay Coffee convinced the Royal Swazi Hotel to serve their coffee to conference delegates during tea breaks during the conference. Directly leading from this relationship with the hotel Food and Beverages Manager, they managed to secure firm trial orders from the hotel, which they are confident will be on a more permanent basis in the near future. Assagay Coffee’s intention is to use this base to launch the coffee into the rest of the hospitality sector in Swaziland.
Various successes were reported which resulted from the exposure provided by this initiaitve, with some exhibitors providing notable feedback with greater export potential Those successes were:
2. Sivuno Consulting Sivuno Consulting similarly struck a deal with the Royal Swazi Hotel to initially train their front office staff in customer care. The arrangement was that the hotel would host the training session, and invite as many participants as possible from its own network in the services marketing management sector. Sivuno was to run the initial session free, and use the platform to follow up on external participants and extend the training into the rest of the services sector.
The hotel would accommodate the Sivuno Consulting staff free of charge. Sivuno Consulting also saw an opportunity directly out of the conference, to develop and propose a hospitality training programme for all establishments within the east3ROUTE to assure a standardised level of service experience, whether tourists are in Swaziland, Seychelles, Mozambique or KwaZuluNatal. The proposal has since been submitted to the office of the MEC for Economic Development, Tourism and Environmental Affairs.
3
east3ROUTE October 2014
A TOUCH OF CLASS FOR USHAKA MARINE WORLD
Delegates from this year's east3ROUTE initiative attended a cocktail party at Durban's pride and joy, the Ushaka aquarium, on Sunday, 26 October 2014, and were enthralled by the unique facility and its fascinating residents.
Mr Michael Mabuyakhulu, MPP MEC for Economic Development, Tourism & Environmental Affairs, KwaZulu-Natal, South Africa
Mr Ndabo Khoza, CEO for Tourism KwaZulu-Natal
Mr Eric Apelgren, HOD for International and Governance Relations at eThekwini Municipality
Cllr Nomvuzo Shabalala, Deputy Mayor eThekwini Municipality
Jabulane Mabuza, Minister Tourism Swaziland, MEC Michael Mabuyakhulu, and deputy Mayor Cllr Nomvuzo Shabalala
Eric Apelgren and Oxana Savostina from Russia
Francis Hweshe, Lerato Mbele and Themba Vilakuzi
Yvonne Mfeka (EDTEA) and Thabisile Mtshali (Durban Tourism)
Leleti Khumalo (KZN Ambassador) and Prof Mark Hay (MANCOSA)
Evgehey Gerasimov, Olga Sehesova, Alexander Voronin and Oxana Podoskenova, all from Russia
Johan van de Mescht, Shado Ntzene and S’bu Hlela, SABC Morning Live
Andisiwe Baver, Ninopha Mngeni and Babalwa Mapisa from EDTEA
Sophie Ndaba, KZN Ambassador, CEO TKZN Ndabo Khoza and Winnie Mtshabe
Belgineta David, Nuno Fortes, Tome Mulewana, Sara de Almeida and Jeramias Manussa, all from Mozembic Mtshabe
Chris Phili (Afriportico Networks) and Manini Dumase (National Public Works)
Lumka Sibanyoni (TIKZN), Antoinette du Pont, Thus Dlamini and Zacharia Dlamini, all from Swaziland
4
east3ROUTE October 2014
NETWORKING THE NAME The east3ROUTE business seminar today was a bustling scene of business collaborations, country-to-country dialogue, expert presentations,
Mr Carvalho Muária Minister for Tourism, Mozambique
Mr Alain St. Ange Minister for Tourism and Culture, Seychelles
J Vilane, M Ngidi District General, MEC Michael Mabuyakhulu and Welcome Msomi, Chairperson Growth Coallition
Moses Thembe and Z Gwala, CEO TIKZN
Minister Gideon Dlamini, Minister Tourism Swaziland, Jabulani Mabuza, Minister Lungile Gama, and MP Veli Shongwe
Jessica Nhleko and Eric Maseko, CEO Tourism Swaziland
Speakers Neil Puresh, MD International Trust Seychelles LTD, Faizel Furesh, Exciting Seychelles, Quessanias Matsombe (Humula Resorts and Rubert Simeon, CEO Seychelles Investment Board
Paul Jones, Urban-Econ, Lerato Mbele (BBC World News), Neville Matjie, TIKZN, and Talia Feigenbaum (Urban-Econ)
Extract from Mr Kuseni Dlamini’s Address
Mr Kuseni Dlamini, Chairman of Massmart, South Africa
The investment by Walmart, the largest company on planet earth with net sales of over $473 billion in fiscal 2014 and 2.2 million associates (employees) globally, into Massmart about three years ago was a resounding vote of confidence which can and must be leveraged to the maximum. It was a vote of confidence not just on South Africa but on Africa at large. That was South Africa’s and, dare I say, Africa’s moment of glory. It still is. And will remain so for some time to come. South Africa and Africa can and must do more to capitalize on this opportunity to articulate and perpetuate a compelling value proposition to other global investors to invest massively in existing and new business ventures across the continent. There can’t be growth without investment. Nor can there be job creation without investment. There can’t be investment without an enabling environment underpinned by smart regulations that craft a fine balance between the needs of the economy and society alike. The East3Route markets need more local and global investor confidence to unleash their full economic potential and overcome their numerous socioeconomic challenges. We need to aim to outperform our peers in other emerging markets by creating and sustaining growth, job creating and poverty alleviating platforms. - Kuseni Dlamini
Minister of Tourism, Swaziland, Jabulani Mabuza
5
east3ROUTE October 2014
OF THE GAME AT SEMINAR and valuable source-gathering as delegates explored the possibilities of cross-border linkages and trade possibilities.
Mr Jabulani Mabuza Minister for Tourism and Environmental Affairs, Swaziland
Nomsa Simelane, Poppy Khoza, and Mbali Tsabedze
Musa Mntambo, Desiree Rajoo and Qiniso Ngubo
Bandile Mkhize and Phakamile Madonsela
Donny Pethan, TIKZN, Deven Naidoo, Sam Lazarus
Alfredo Wetimque, Bonifacio Manhica and Raufo Usa
Frances Chisolm Consulate, General USA and Dr Sears Appasamy
Zeenat Buccas, Antonnio da Silva and Indira Mohunlal
Extract from AMB. Faizel Ismail’s Address
AMB. Faizel Ismail, South African Ambassador to the World Trade Organisation, South Africa
Mr Michael Mabuyakhulu, MPP MEC for Economic Development, Tourism & Environmental Affairs, KwaZulu-Natal, South Africa
The Tripartite Free Trade Agreement (TFTA) is a free trade agreement which is currently being negotiated among the 26 member countries of the Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and East African Community (EAC). These countries have a combined gross domestic product of US$1.2 trillion and a combined population of approximately 626 million people. This represents just over half the total African population and economy. This is a historical, and to date the most significant, milestone in the integration of the African continent. Globally, Africa is viewed as the next frontier market. Currently, 7 out of the 10 fastest growing economies in the world are in Africa. Africa is the second fastest growing continent after Asia. Moreover, with the wave of infrastructure development unfolding across the continent, the current economic growth is probably only just the beginning. - Faizel Ismail
6
Mr Jabulani Mabuza Minister for Tourism and Environmental Affairs, Swaziland
Mr Carvalho Muária Minister for Tourism, Mozambique
east3ROUTE October 2014
THE MAGIC OF SWAZILAND
T
he tiny sliver of neighbouring land that is the Kingdom of Swaziland more than makes up for its size with its stunning landscapes of mountains and valleys, forests and plains, and its wildlife reserves. The culturally rich region offers various investment opportunities. The economy is highly diversified, with agriculture, forestry and quarry stone mining accounting for about 13% of GDP, manufacturing (textiles and sugar-related processing) representing 37% of GDP, and other services accounting for 50% of GDP. Title Deed Lands, where the bulk of high value crops are grown, like sugar, forestry, and citrus, are characterised by high levels
of investment and irrigation, and high productivity. Primary exports are soft drink concentrates, sugar, wood pulp, cotton yarn, citrus and canned fruit. Recently, the government has embarked on the construction of an international convention centre and a five-star hotel (ICCFISH) in Ezulwini, worth USD$114 million. A feasibility study and designs plans are available for this project. Major earthworks have already been completed, and investors are sought who will put up equity as well as manage operations of the establishment. Fancy investing in an airport? Another superb opportunity exists at the recently launched King Mswati III International Airport, for the construction and operation of
a transit hotel for passengers and airline staff. Land is available for the project and negotiations can be done regarding the terms of acquisition of the land. The investor will conduct a feasibility study, design, build and operate the hotel. Various other projects are available for investors and or funding partners: an amusement and theme park linked to the international Convention Centre and Shopping Centre; an ecocity project comprising several tourism development projects Eco City Orchard Estate & Resort Development Project, Stone Age Wild Life Resort & Golf Estate, motor racing track, theatre and museum. Those keen to invest in this tiny
but exquisitely beautiful country might also want to plough some funds into the development of a 300MW power station, which can be increased in modular up to 600MW. The project aims to increase the base load output in Swaziland and surplus will be sold to neighbouring countries though the Southern Africa Power Pool (SAPP). The development can be done in partnership with the national power utility company, the Swaziland Electricity Company. An investor needs to conduct a pre-feasibility and feasibility study for the project. The investment amount required is US$ 2 billion. * South African investments in Swaziland since 2003 are more than estimated R1.3 billion.
WELCOME TO MOZAMBIQUE
B
eautiful Mozambique is on an upward spiral towards sustainable development, currently rated as one of the world’s top 10 fastest growing economies. Aware of its shortcomings in areas like skilled human development and infrastructure improvement, the country has fast-tracked legislation and policy to create the necessary environment to attract domestic and foreign direct investment for a multi-sectoral and diversified economy. Investment opportunities abound in agriculture, tourism, mineral resources, financing, banking, insurance, transport, communications, civil construction, energy, fishery and infrastructures such as railways, airports, roads and bridges.
With the renewed investment into port infrastructure, the value of Mozambique’s exports in vehicles and transport equipment is also escalating. Established in 2007, the 48 000 square metre Maputo Car Terminal has more than 4000 parking bays and a throughput capacity of 150 000 cars per year. Volumes were up by 91% to 37 155 units in the six months to June 2013 compared with 2012. The Special Economic Zones such as Crusse-Jamali, Mocuba, Manga, and Nacala, and Tourism Integrated Investment Development Zones like Pemba, Lumbo-Sancul, Metangula, Lichinga and Inhassoro are establishing themselves as hubs for public and private investment and various partnerships.
Within the next four years, Mozambique expects to position itself as one of the big five gas suppliers worldwide. Palma, Tete, Nacala, Maputo, Vilankulo and Pemba are constantly researched by a business community seeking opportunities in Africa, while the coal minerals, the Cahora Bassa hydropower, and the Palma and Temane gas pipelines, will continue to contribute to the southern African economy and industrialisation. The country is already reaping the benefits of the gas industry. Over the past year, its coffers have received almost $1 billion in taxes from a number of gas-related deals, while Maputo is currently experiencing a property boom as the industry’s potential simulates demand for office space and
housing. Experts say that Mozambique could see major cash flowing after 2020: the International Energy Agency estimates that cumulative government revenue from gas could reach an impressive $115 billion up to 2040. The southern Mozambique provinces of Inhambane, Gaza and Maputo continue to be extraordinary drawcards for regional and international business and leisure tourism. The combination of beach and bush products is a major magnet, but the historic and cultural richness also play their roles in the country’s offerings. A world of pleasure and delight, as well as bountiful opportunities for investment, await you at this fascinating destination.
east3ROUTE October 2014
Mr Alain St. Ange Minister for Tourism and Culture, Seychelles
7
EXPLORE THE REPUBLIC OF SEYCHELLES
A
s far as our new member of the east3ROUTE, the Seychelles, is concerned, there is particularly strong appeal for investors. The country enjoys good public sector governance, ranking 5th in the Ibrahim Index of African Governance in 2014. Seychelles has already achieved most of the Millennium Development Goals, especially for education, health, poverty eradication, and the environment. Poverty is relatively low, with less than 2% of the population living on less than US$ 2 per day. Economic growth in Seychelles was projected to accelerate to 3.7% in 2014, depending on an increasing number of tourists during the second half of the year based on an uptick in arrivals and new flight connections to Europe. Tourism is one of the most important sectors of the economy in this vibrant destination, accounting for about 16.6% of its GDP. Employment, foreign earnings, construction, banking, and commerce are all dominated by tourism-related industries. You’ll find a bountiful list of products exported from this beautiful region. They include
canned tuna; Fish (fresh/frozen); frozen prawns; cinnamon bark; other processed fish; fishmeal (animal feed); medicaments & medical appliances, metals, goods in transit, oil and lubricants. The economic makeup of Seychelles is reportedly 2% agricultural, 18.7% industrial and 79.4% services. The country’s main trading partners are Saudi Arabia (24%), Spain (12.1%) and France (5.9%), with South Africa positioning itself as the fifth largest source market for the Seychellois’ import demand. There are, in fact, 12 excellent reasons to invest in Seychelles. They are: • A stable political environment and favourable time zone of +4 GMT • Government policies supporting both domestic and foreign investment • Ideal location for trading and manufacturing • Skilled labour force fluent in English, French and Creole • 96% adult literacy rate and a life expectancy of 77 years old • Sea and air connectivity from all over the world
• Work permit easily available and no visa is required • High environmental standards • Excellent communications network with the connectivity of fibre optic cable and superb IT infrastructure • Favourable tax regimes for investment in the tourism, agriculture, energy and fisheries sectors, and a world class financial centre with no foreign exchange restrictions • Multiracial population • Located outside the cyclone belt. In his 2014 budget speech delivered to the National Assembly, Finance, Trade & Investment Minister Pierre Laporte said that “…five years ago, the Seychellois nation and its economy was like a child who had done so well growing up, but somewhere along the way, found himself in need of a helping hand. Today, five years later, Seychelles, like this determined child, has recovered strongly; ready to take the next step towards more success and prosperity.” Over the past decade, Seychelles has seen significant success in establishing itself
as a well-known and respected international financial services jurisdiction. This journey started with the establishment of the International Business Companies Act in 1994, now the Financial Services Authority (FSA) and since then the Seychelles has swiftly been acknowledged by the global financial community as one of the most competitive and recognised jurisdictions for International business company incorporations. Today, the financial services sector is the most rapidly evolving sector of Seychelles’ economy with a growing assortment of financial products and services, substantial advancements in the competence and capabilities of the country’s human resource and a common understanding that success, growth and productivity can all be achieved while complying with an efficient and up-to-date legal and regulatory framework. In fact, the financial services sector is often referred to as the third pillar of the Seychelles’ economy and offers a range of services and products that make it an exceptionally exciting destination for Investment.
NEW PROJECTS LINE UP FOR KZN I
n his budget speech earlier this year, MEC for Economic Development, Tourism and Environmental Affairs Michael Mabuyakhulu said that within the next five years, KwaZulu-Natal was expected to attract new investment projects worth R25 billion, creating more than 40 000 jobs – more than R8 billion of this would be directly attracted by TIKZN (Trade & Investment KwaZulu-Natal). “TIKZN will further assist more than 350 small and medium size companies with securing new international export markets. This will realise an increase in the companies’ sales revenue to more than R5 billion over five years, said the MEC? TIKZN, in collaboration with sister agencies, will be packaging investment projects within the special economic and industrial economic hubs. These projects will be underpinned by research and the need to recruit investments into the identified districts.
Dube Tradeport Planned Developments: Dube Tradezone Extensions - Kwazulu-Natal
8
east3ROUTE October 2014
KWAZULU-NATAL: RICH IN OPPORTUNITIES T
Publisher: Trade & Investment KwaZulu-Natal Editor: Ayanda Zuma Layout & Design: MediaCom SA Photography: Terry Haywood Disclaimer: Every effort has been made to ensure that the information was true and correct at the time of going to print. 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 Email: info@tikzn.co.za Gauteng Office Contact: 99 George Storrar Avenue, Groenkloof, Pretoria Tel: +27 (0) 12 346 4386/6763 Fax: +27 (0) 86 501 0848/1788 Website: www.tikzn.co.za
he east3ROUTE initiative endeavours to explore, open up and cement cross-border trade between South Africa, Mozambique, Swaziland and the Seychelles. Here in KwaZulu-Natal, we pride ourselves on being the cultural melting pot of the country. Our tourism industry is flourishing, our combination of Berg, bush and battlefield – as well as our wonderful beaches – an appealing drawcard for visitors. Investment potential is huge – and warmly welcomed. KwaZulu-Natal is also South Africa’s second largest economy, being the second largest contributor to the country’s GDP. The province is strategically placed with two of the country’s busiest and largest ports, Durban and Richards Bay, and boasts the highest export propensity and the highest level of industrialisation in the country. The province’s economic structure is based on a large manufacturing sector in which growth is driven by the paper products industry, ferro-alloys (such as aluminium) and other chemicals. Further significant sub-sectors include motor vehicles and component manufacture, printing and publishing, food and beverage production, non-electrical, iron and steel, wooden furniture, textiles and clothing. A number of new initiatives and development projects in the pipeline will inject further investment into the province, and be a valuable source of job creation. Potential investors might like to look at any of the following. One of the biggest is the Durban Port expansion, a R1.6 billion project that will significantly increase capacity at our and will involve expansion of DCT Pier 1, North Quay at DCT Pier 2. Container capacity is also being increased at other terminals. Transnet is further proposing the phased development of a new dig-out port at the old Durban International Airport site. The project to increase the capacity of the
container terminal is complete, with only a few work packages outstanding. Transnet is already busy with deepening berths at Maydon Wharf. Then there are the multi-billion rand Tongaat Hulett North Coast land development projects. The Tongaat Hulett group, one of the main owners of land along the North Coast, is developing four major sites, stretching from Durban North all the way through to Ballito. They are Ridgeside, Ushukela, Sibaya and Cornubia and will boats hundreds of thousands of square metres of office and commercial development and mixed-use residential development. All major planning and approvals have been secured, with the Cornubia development enjoying Presidential Priority Project status. Those interested in projects further inland might want to consider Wild Dog Estate in the Drakensberg. A 363ha tract of land, on the D600 road it’s surrounded by stunning views of the mountains, rivers and rolling valleys and lies next door to the uKhahlamba Drakensberg National Park, a renowned World Heritage Site. The development will include executive villas, a luxury hotel and conference centre, as well as a fitness centre and beauty spa. The developers are considering a horse stud section to breed polo and polocrosse horses for both the local and overseas markets. The project requires R80 million for the development of the hotel and its facilities. An equity partner is required to inject R19 million for a 51% stake in the development. The developers are still looking for a suitable operator. A number of companies have approached them, including Premier Hotel Group. Anticipated to be situated in the same region, slightly closer to Pietermaritzburg, is a project from Eureka Capital, a fund management company from Israel. The company intends to establish a 10MW solar park in iMpendle district. Investment will be
in phases, culminating in an 80MW output, all of which will be sold to Eskom. The value of the project is R1 billion and at least 100 jobs will be created. One of the biggest developments, and one of which the province is incredibly proud, is the illustrious Dube TradePort and the anticipating expansions. Dube TradePort is home to King Shaka International Airport and is being developed as southern Africa’s premier air logistics platform. Dube TradePort was conceptualised some 13 years ago as the provincial government’s contribution to enabling trade expansions, economic development, increased private and foreign direct investment and the creation of new permanent employment. Today, the province is emerging as an economic powerhouse for 21st century business in South Africa and is actively being positioned to become the gateway to Africa and the world by 2030. The TradePort’s mandate is to drive the development of the cargo terminal - boasting SA’s first four flexible cargo stands with stringent access controls, and which can handle 100 000 tons of cargo annually. This will increase to two million tons by 2016. The Dube TradeZone is a specialised precinct of fully serviced industrial real estate, ideally positioned for new-generation distribution, manufacturing, assembling, air-related cargo distribution, high-tech aerospace services, electronics manufacturing, automotive industries,clothing and textiles, and cold storage activities. It also houses freight forwarders and shippers in a single building, with airside access via direct connection with the adjacent Dube Cargo Terminal, via an elevated cargo conveyor air bridge. Last but not least, there’s the Dube AgriZone, Africa’s first integrated perishables supply chain, hosting the continent’s largest climate- controlled growing area under glass. Investors are welcome to explore the above possibilities.
Durban Point Waterfront (New Concept) - KwaZulu-Natal