KwaZulu-Natal Business 2018-19 by Global Africa Network Media

2018/19 EDITION

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

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Welcome to Durban! A lifestyle of business and pleasure together. Facilitating sustainable investment in Durban for the beneﬁt of all

nvest Durban (DIPA) is an entity of the eThekwini Municipality, recommended by the Durban City Council and organised private business as the most appropriate vehicle to stimulate economic growth and new investment in the Durban metropolitan area.

•

Invest Durban’s primary objective is to facilitate sustainable investment in Durban for the benefit of all through the: • Proactive investment promotion and marketing of Durban Metro as a premium investment destination • Proac tive communication and marketing of the City’s large investment projects and core strategies

Identification and development of new investment and business infrastructure opportunities, especially for previously disadvantaged groups Attraction, support and facilitation for prospective foreign investors in Durban Improvement in the investment and economic development environment, in partnership with National, Provincial, City and Business Authorities.

Invest Durban offers: • Investment Services • Destination Services • Business Establishment and • Administration Services

Doing business in Durban Durban has been developed around a natural ocean port, which plays a key role in the city’s economy and that of South Africa. Strategic location The port of Durban is modern and wellequipped. It offers investors a range of competitive and strategic advantages. The city has emerged as the de facto coastal trade ‘gateway’ to Southern Africa. It boasts the largest port in Africa, as regards value of cargo, and is South Africa’s premier general cargo and container port. It is positioned to access international shipping links to the Americas, Europe, the Persian Gulf, South East Asia, the Pacific Rim and Australia/New Zealand and perfectly located for the transshipment of cargoes between Eastern, Middle-Eastern and Western economies. Infrastructure Durban offers established and advanced road, rail, sea, air and ICT network infrastructure.

Quality transport systems include: • Port operation facilities • Rail network – cargo and passenger • International airport with air cargo facilities • Extensive road network with national and regional linkages • Oil/petroleum pipeline to Gauteng and Free State Provinces • Gas pipeline emanating from Sasol, in Mpumalanga province. Durban provides a number of new opportunity areas for business investors, both large and small. Investment opportunities may be categorised into the following fields: • Agriculture • Property Development • Manufacturing • Knowledge Sector • Tourism • Commerce • Public-Private Partnerships.

Invest Durban, eThekwini Municipality 11th Floor, 41 Margaret Mncadi Avenue (old Vic. Embankment), Durban, 4001 South Africa Tel: +27 31 311 4227 | Email: invest@durban.gov.za a Website: www.durban.gov.za

EST 1856

DURBAN CHAMBER OF COMMERCE AND INDUSTRY NPC

INSTITUTIONAL PARTNERSHIP & COLLABORATION

INCREASED INVESTMENT IN THE CITYʼS ECONOMY

SKILLS DEVELOPMENT AND EDUCATION TO CREATE ECONOMIC GROWTH AND JOBS SMME

DEVELOPMENT OF VIBRANT SMALL BUSINESS SECTORS & SUSTAINABLE ENTERPRISES WITHIN IT PROVISION AND MAINTENANCE OF ADEQUATE INFRASTRUCTURE REJUVENATION OF THE INNER-CITY

CREATION OF MEANINGFUL EMPLOYMENT

WORKING TOWARDS ACHIEVING

BUILDING AN ICONIC REPUTATION AS A GREEN CITY

DCCI

ACHIEVEMENT OF ‘INTERNATIONAL DESTINATIONʼ STATUS FOR LEISURE, BUSINESS & TOURIST

CRIME & GRIME FREE CITY

1 GOAL TO MOVE OUR BUSINESS FORWARD www.durbanchamber.co.za

he Durban Chamber of Commerce and Industry NPC has mushroomed, from its small beginnings in 1856 to a substantial association, respected by its sister chambers throughout the country. Currently the oldest and largest metropolitan chamber in Africa, we add value to our chamber members through our robust interactions and partnerships with both the private and public sector. These initiatives are in addition to the many great services offered, such as the business information we distribute to our members and the entire Durban business community, as well as the system of standing committees, also known as forums, that meet regularly to consider relevant issues within the sectors that the various committees represent.

DCCI NPC Vision:

To be recognised as a world-class business chamber and a united voice of business in the eThekwini Municipal area and beyond

DCCI NPC Mission:

To contribute towards creating a conducive economic and business environment in Ethekwini Municipal area and beyond, as well as providing services specifically relevant to small and large businesses operating in the region.

Services offered by the Durban Chamber of Commerce and Industry NPC: 1 2. 3. 4. 5. 6. 7.

Enterprise Development Beneficiary Status Fully equipped Conference Centre CIPC services Durban Chamber Procurement Portal Certificates of Origin ATA Carnet Carnet de Commerce

Call Us

8. Credit Reference Checks 9. First line HR/IR advice and support 10. Seminars and Workshops 11. Policy and Advocacy Department providing reliable and relevant policy perspective 12. Employee Health, Wellness, Safety Advice and Support

Today to become part of Durban business gateway to emerging markets.

Chamber Square, Lion Match Office Park, P.O BOX 1506 Durban, 4000, South Africa 892 Umgeni Rd, Durban, 4001

031 335 1000 031 335 1288

chamber@durbanchamber.co.za www.durbanchamber.co.za

CONTENTS

CONTENTS KwaZulu-Natal Business 2018/19 Edition

Introduction Foreword 8 KwaZulu-Natal’s unique guide to business and investment.

Special features Trade & Investment KwaZulu-Natal Promoting the province as an investment destination and facilitating international trade.

Introducing the province of KwaZulu-Natal

Investment opportunities abound in a wide variety of sectors. Durban’s inner city is to be revitalised

New plans and a North Coast boom offer investment opportunities in eThekwini. Supertech Group takes top honours

The Supertech Group took top honours at the BMW SA National Dealer Awards. New areas are attracting investment

Industrial parks are planned for every district in KwaZulu-Natal.

Economic sectors Agriculture 46 A new cold-storage facility at Dube TradePort is good news for farmers. Sugar 47 Sugar production is on a downward trend. Forestry and paper

South African companies have a global presence. Mining 54 Mineral sands are mined in the north.

KWAZULU-NATAL BUSINESS 2018/19

ts Support UNIZULU Studen Invest in Future Leaders

Established in 1982, the UNIZULU (University of Zululand) Foundation is a non-profit organisation which seeks to support the University and community through initiating and sustaining long-term partnerships with donors based on identified specific needs of the two spheres. Through its constant efforts to obtain third-stream income (funds either than student fees and government grants or research awards) the Foundation has, over several years, secured funding that has culminated in countless student bursaries while also contributing towards the implementation of institutional projects. Why Support UNIZULU? UNIZULU is an institution with unique and compelling needs which include, among others, that: • 75% of our 17 544 students are financially needy. • There are inadequate student accommodation facilities on campus and in the region. • There is a lack of suitable postgraduate accommodation or study/research facilities. • 75% of our students are supported by the National Student Financial Aid Scheme (NSFAS) but only for undergraduate study. The reality about NSFAS support is that the applications of many more students are not processed thus these students require urgent support. The Foundation is appealing to private and public institutions, alumni and individuals for support in the form of donations, grants, bursaries, learnerships and Work-integrated Learning (WIL) programmes. The latter is vital for UNIZULU’s growth as a unique institution, in a rural context, with the potential to become a vibrant and value-adding economic hub. Banking Details: Location: University of Zululand Foundation T 12 Account Number: 52165778105 Thandanani Complex First National Bank, Empangeni Branch Code: 220130 For further information email naikerp@unizulu.ac.za / israelc@unizulu.ac.za or call 035 902 6245

CONTENTS Oil and gas

Richards Bay is set to host a liquid natural gas plant. Manufacturing 60 A Durban shipyard is making tugs for Transnet. Automotive

An automotive supplier park is under construction. Energy 70 Biomass is producing energy in northern KwaZulu-Natal. Water 71 New water infrastructure is being built. Tourism 72 KwaZulu-Natal is investing in tourism. Education and training

The private sector is growing quickly. Banking and financial services

Local finance agency aims to become a bank. Development finance and SMME support

Agri-processing is lucrative for entrepreneurs.

Government KwaZulu-Natal Provincial Government

A guide to KwaZulu-Natal’s provincial government departments. KwaZulu-Natal Local Government

A guide to KwaZulu-Natal’s metropolitan, district and local municipalities.

References Sector contents

Index 88 Map KwaZulu-Natal municipalities.

KWAZULU-NATAL BUSINESS 2018/19

Unlocking Economic Potential The South Coast has many natural, economic and structural advantages: • Market access – gateway to the Eastern Cape, close proximity to Durban Harbour • Direct flights to Johannesburg daily from Margate Airport, and weekly to Cape Town • Skilled workforce • Ease of doing business, government committed to supporting business • Competitive operative environment – Ugu offers investors many advantages including competitive labour costs and low cost of living • Subtropical climate Let Ugu South Coast Development Agency assist you Ugu South Coast Development Agency is responsible for ensuring that foreign investors have the information and support they need to take advantage of the business opportunities in the following sectors: • Property Development • Agriculture • Tourism • Ocean Economy • Small-scale Mining • Manufacturing Endless Opportunities With abundant natural advantages, close proximity to fast-growing SA economies, a well-skilled workforce and a stable economy, Ugu represents an unrivalled investment destination.

How we help investors We understand the complexities of investing and provide the information required for you to make good investment decisions in a coordinated approach that saves investors time and money. Our specialist investment team provides a range of business and investment services to investors: • Detailed industry knowledge about business costs • Preparing business cases • Arranging site visits • Introduction to industry and service providers • Government liaison • Market intelligence • Partnering with local councils, economic development agencies/departments and private service providers to identify investmentready projects. Snapshot of Ugu – South Coast Region Province: KwaZulu-Natal Economic Hub/City: Port Shepstone Climate: Subtropical Summer: 20O to 31OC Winter: 15O to 22OC Coastline: 112km Total area: 5,047km2 (1,949mi2) Population: 722,484 Airport: Margate Airport

www.uscda.org.za • info@uscda.org.za • 039 682 3881

CREDITS

KwaZulu-Natal Business

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse

A unique business and investment guide.

Editor: John Young

Online editor: Christoff Scholtz

he 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the investment prospects of Durban (eThekwini) and on the specific attractions for investors of other regions throughout the province. We are pleased to include a survey of the province’s economy from Trade & Investment KwaZulu-Natal, the dedicated trade and inward investment promotion agency that promises to be “your knowledge partner in business”. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www. kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-tobusiness titles that cover all nine provinces as well as our flagship South African Business title.

Art director: Brent Meder Design: Tyra Martin Production: Lizel Olivier Ad sales: Sydwell Adonis, Gavin van der Merwe, Sam Oliver,Gabriel Venter, Jeremy Petersen, Shiko Diala, Joseph Gumbo, Vanessa Wallace, Reginald Motsoahae and Siya Sthunda. Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald

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

Printing: FA Print

PUBLISHED BY

DISTRIBUTION

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

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

ISSN 1993-0127 COPYRIGHT | KwaZulu-Natal Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Pictures supplied by: Business Partners, Thinkstock, Coastal TVET College, Transnet National Ports Authority, Toyota and iStock.

KWAZULU-NATALBUSINESS 2018/19

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in KwaZulu-Natal Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

Petroleum Agency SA encourages investment in the oil and gas sector by assessing South Africa's oil and gas resources, and presenting these opportunities for exploration to oil and gas exploration and production companies. Compliance with all applicable legislation in place to protect the environment is very important, and rights cannot be granted without an approved Environmental Management Plan. Explorers must prove financial and technical ability to meet their commitments in safe-guarding and rehabilitation of the environment.

C AGEN Y FOR

PR O OF PETRO ION LE OT U

SOUT H

CA RI

Preparation of Environmental Management Plans requires public consultation and a clear demonstration that valid concerns will be addressed.

ORATION AND PL EX EX

Petroleum Agency SA, based in Bellville, Cape Town, is responsible for the promotion and regulation of exploration and exploitation of oil and gas (petroleum) resources.

Contact us to find out about: - Onshore or offshore exploration opportunities - Permits and rights - Availability of geotechnical data.

TION TA OI PL

PETROLEUM AGENCY SA

+27 21 938 3500 plu@petroleumagencysa.com www.petroleumagencysa.com

PIONEERING INVESTMENT IN KWAZULU-NATAL, GROWING THE PROVINCE’S COMPETITIVE ADVANTAGE AS A PREMIER INVESTMENT DESTINATION

PROFILE

TRADE & INVESTMENT KWAZULU-NATAL YOUR KNOWLEDGE PARTNER IN BUSINESS.

South Africa is rated among the top 10 in the world in the category of investor protection and good fiscal governance, and the World Bank has rated South Africa among the top 30 countries in terms of its ease of doing business. South Africa is also regarded as one of the least costly areas in which to establish a business.

opportunities in KwaZulu-Natal; provides a professional service to all clientele; brands and markets KwaZulu-Natal as an investment destination; retains and expands trade and export activities; and links opportunities to the developmental needs of the KwaZulu-Natal community.

In line with this, the province of KwaZulu-Natal has established itself as a premier domestic and international investment and tourist destination. With two of the busiest ports on the Sub-Saharan African Continent, in addition to its 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. Its strategic location and highly developed industrial sector ensure a competitive edge for both local and foreign investors and offers unique advantages for local exporters.

VISION “To be the leader in developing and promoting export trade in KwaZulu-Natal and to position the Province as a premier destination for investment.”

Investment in KwaZulu-Natal continues to emerge as a major contributor to South Africa’s growing economy, with the province’s contribution to national GDP amounting to 16%, and it is statistically the second-largest GDP per region in South Africa. The favourable business environment has made the province a sound investment destination for investors from around the world. MANDATE Trade & Investment KwaZulu-Natal is a South African trade and inward investment promotion agency, established to promote the province of KwaZulu-Natal as an investment destination and to facilitate trade by assisting local companies to access international markets. The organisation identifies, develops and packages investment

MISSION • Identify and package investment opportunities in KwaZulu-Natal • Brand and market KwaZulu-Natal as an investment destination • Link opportunities to the developmental needs of the KwaZulu-Natal community • Ensure easy access to investment and export trade opportunities OBJECTIVES Trade & Investment KwaZulu-Natal’s business objectives include: • To meet shareholder and stakeholder expectations, TIKZN aims to deliver exceptional professional service levels and support to clients and stakeholders through the following initiatives: • Attracting, developing and retaining highperformance employees with skills and competencies to manage key internal business processes, including marketing TIKZN as an investment promotion agency • Enhancing TIKZN’s research and knowledge capabilities and using technology as an enabler for its business

SUCCESSFUL PROMOTION OF BUSINESS INVESTMENT AND TRADE DEVELOPMENT DURBAN • •

KEY

ACTIVITIES Trade & Investment KwaZulu-Natal undertakes a diverse range of key activities, all designed to ensure the successful promotion of business investment and trade development.

Ensuring corporate governance and finance reporting standards compliance Advocating for a conducive business environment in KwaZulu-Natal, in addition to marketing the province as a premier business destination

Such activities include: • The facilitation of joint ventures • The facilitation of business linkages between small and big business • The timely provision of relevant and reliable information to both potential and existing investors and traders • Assistance to existing and new investors regarding applications for investment as well as export-marketing incentives • Assistance to foreign investors in terms of applications for business permits • Negotiations for local government incentives on behalf of investors • The provision of project support and aftercare services to investors • The provision of assistance to emerging international traders • Assistance with international trade enquiries. • Assistance to investors with regard to locating suitable premises • Assistance to investors in terms of securing project and operational finance The key priority sectors of focus for the Organisation include: • ICT and Business Process Outsourcing • Transport, Maritime and Logistics • Infrastructure Development • Agriculture (Primary and Secondary) • Manufacturing • Mining • Renewable Energy • Tourism Development

MUNICIPAL INVOLVEMENT Trade & Investment KwaZulu-Natal (TIKZN) continues to stamp its authority on the trade and investment sector and have been partnering with all spheres of government to support local trade and businesses to create and sustain employment for the people of KwaZulu-Natal. The organisation embarks on municipal roadshows aimed at promoting districts as an investment and trade destination, to strengthen relationships and the flow of communication between TIKZN and all spheres of government. CONTACT INFO KwaZulu-Natal Office: Trade & Investment House, 1 Arundel Close, Kingsmead Office Park, Durban, 4001 Tel: +27 31 368 9600 Fax: +27 31 368 5888 Gauteng Office: 99 George Storrar Avenue, Groenkloof, Pretoria, 0181 Tel: +27 12 346 4386 / 6763 Fax: +27 12 501 1788 info@tikzn.co.za www.tikzn.co.za www.exportportal.co.za

FOCUS

INTRODUCING THE PROVINCE OF KWAZULU-NATAL

KwaZulu-Natal is a coastal province and home to two of Africa’s largest and busiest seaports

THE SECOND

LARGEST

provincial economy has much to offer local and international investors, contributing on average 16% to the national GDP.

South Africa is one of the world’s top business destinations and is strongly supported by well-developed infrastructure; the province is equipped with every convenience and delivers high levels of service expected by the business world. South Africa is rated number one in obtaining credit and is also rated among the top 10 in the world in the category of investor protection and good fiscal governance. The World Bank has rated South Africa among the top 35 countries for ease of doing business. It is also regarded as one of the least costly areas in which to establish a business. KwaZulu-Natal is a major role-player in both the manufacturing, transport and

logistics sectors in South Africa and is a premier domestic and international tourist destination. Dube TradePort Aerotropolis, which includes King Shaka International Airport, the Inkosi Albert Luthuli International Convention Centre and two of the largest ports on the SubSaharan African continent (the ports of Richards Bay and Durban), are proof of the province’s world-class infrastructure. 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 around the world.

KWAZULU-NATAL IS AN IMPORTANT HUB OF INDUSTRIAL DEVELOPMENT IN SUB-SAHARAN AFRICA THANKS TO ITS RICH NATURAL RESOURCES AND WELL-DEVELOPED INFRASTRUCTURE. KwaZulu-Natal is located on the Eastern seaboard of South Africa, lapped by the waters of the Indian Ocean.

DOING BUSINESS IN KWAZULU-NATAL

11.07

Provincial Head

Mr T.W. Mchunu

The province of KwaZulu-Natal has South Africa’s second-largest local economy, contributing 16% to the national economy, and is deemed to be one of the country’s leading economic and business hubs. According to Statistics South Africa’s 2017 population census, the province of KwaZulu-Natal is the second most populous province following Gauteng Province.

(census – 2017) ECONOMICALLY ACTIVE

POPULATION:

3.36 MILLION

(Q3 2017) UNEMPLOYMENT

RATE:

24.6% MILLION (Q3 2017)

94 361km

R489,9 MILLION (2016)

Durban, Ladysmith, Newcastle, Port Shepstone, Richards Bay

OVERVIEW

MILLION

REAL GDPR:

Pietermaritzburg

Main Cities and Towns

ECONOMIC

POPULATION:

AREA:

Capital City

KwaZulu-Natal is an important hub of industrial development in Sub-Saharan Africa thanks to its rich natural resources and well-developed infrastructure. Economic activities in the province are mainly concentrated around the Port of Durban and the inland city of Pietermaritzburg, with further significant contributions in the Richards Bay/ Empangeni area, the Ladysmith/Ezakheni

area and the Newcastle/Madadeni regions, as well as in the Ugu/Port Shepstone region. KwaZulu-Natal is a competitive region for foreign investment, and more especially export opportunities through the Port of Durban. The province has identified prime targets for inward investment, including textiles, clothing, plastic products, chemicals, fabricated-metal products, automotive components, wood and wood products, footwear, machinery and appliances, business process outsourcing and boatbuilding. Of these, primary and processed aluminium at world-competitive prices from local suppliers provides a real opportunity for investors in these sectors.

TOURISM ATTRACTION STRUCTURED AROUND 8 TOURISM DESTINATIONS

Richard’s Bay being the largest bulk coal terminal in the world (more than 80 million tons of coal a year are routed through the port)

INDUSTRY Richards Bay is the centre of operations for South Africa’s aluminium industry.

GDPR GROWTH:

0.43% (2016)

PER CAPITAL GDPR:

R44 779

The Richards Bay Coal Terminal is one of the leading coal export terminals in the world and the world’s largest single coal terminal, while Richards Bay Minerals is recognised as a world leader in sand mining and mineral processing operations. The vehicle manufacturing industry has created a considerable multiplier effect in terms of component manufacturing and aftermarket service. The automotive leather industry has grown rapidly, with exports significantly boosting foreign exchange earnings.

(2016)

CPI: 3.9% (NOVEMBER 2017)

EXPORTS: R125.62

BILLION

KwaZulu-Natal has also recently benefited from rapid industrialisation, thanks to its abundant labour resources and Sub-Saharan Africa’s economic expansion. Numerous industries are located at Newcastle, Ladysmith, Dundee, Richards Bay, Durban, Hammarsdale, Richmond, Pietermaritzburg and Mandeni. The King Shaka International Airport became operational in May 2010, and planning is progressing aggressively to implement Africa’s first green aerotropolis around this airport.

TOURISM Tourism is a key driver of the KwaZulu-Natal economy. The province’s tourism attractions are structured around eight tourism destinations, namely Durban, Dolphin Coast (North), South Coast, Zululand, Pietermaritzburg and Midlands, Drakensberg, Elephant Coast and Battlefields. Better known by tourists as the “Zulu Kingdom”, KwaZulu-Natal is a tapestry of warm, subtropical coastal areas, Big Five game reserves, two World Heritage Sites (the uKhahlamba-Drakensberg Park and the Isimangaliso Wetlands Park), authentic cultural routes and world-renowned historical battlefields. The province enjoys the lion’s share of the domestic tourism market and a growing share of South Africa’s international tourism market, attracting approximately one-million foreign visitors and 10.9-million domestic tourists annually. Tourism growth is underpinned by innovative tourism marketing, new and existing tourism-product development and a well-established tourism service industry.

SOUTH AFRICAN GATEWAY TO OTHER AFRICAN COUNTRIES The manufacturing sector is geared for export, with nearly a third of South Africa’s manufactured exports being produced in KwaZulu-Natal

TWO OF THE

REASONS TO INVEST IN KWAZULU-NATAL • Large labour pool • Diverse culture • Idyllic climate • Access to basic services • Excellent infrastructure and logistics • Gateway to other African countries

LARGEST AND BUSIEST PORTS

IN SUB-SAHARAN AFRICA – DURBAN AND RICHARDS BAY

KwaZulu-Natal’s Information Communication and Technology, machinery and equipment sector absorbs roughly half of the total investment flowing into the region while manufacturing attracts about a third of all investment. Tourism is a key driver of economic growth and an important catalyst for future economic development. INVESTMENT OPPORTUNITIES The province of KwaZulu-Natal offers competitive investment advantages and opportunities, enhancing this region’s status as a preferred investment destination.

DUBE TRADEPORT KwaZulu-Natal’s continued success in international trade is enhanced through improved transport and logistics infrastructure. The Dube TradePort, which is home to the King Shaka International Airport, incorporates an industrial development zone and will be linked with the existing seaports of Durban and Richards Bay. This new development will include key components such as a cargo terminal, Tradezone, support zones and the Agrizone. It will present a new-generation, multi-faceted

economic hub for the province and the country at large. The multi-nodal, integrated logistics platform bodes well for sustainable job creation and the attraction of further fixed investment. The expanded capability of the new international airport, a key component of the development, will create enhanced levels of service in the movement of time-sensitive manufactured goods and perishables to the global market.

DURBAN HARBOUR IS SOUTH AFRICA’S PREMIER MULTI-CARGO PORT, HANDLING OVER 80M TONS OF CARGO PER ANNUM

DURBAN HARBOUR

A catalyst for global trade in Africa that brings together an international airport, a cargo terminal, warehousing, offices, a retail sector, hotels and an agricultural area

THE PORT OF

DURBAN is South Africa’s premier multi-cargo port and is counted among the busiest ports in Africa, handling over 80 million tons of cargo per annum.

The Port of Durban is the leading port in the SADC region and the premier trade gateway between South-South trade, Far East trade, Europe & USA, East & West Africa regional trade. It is the international commercial gateway to South Africa and is strategically positioned on the world shipping routes. It is one of the few ports in the world located in close proximity to the central business district. The Port of Durban occupies a focal point in the transport and logistics chain with 60% of all imports and exports passing through the port, thus it assumes a leading role in facilitating economic growth in South Africa.

RICHARDS BAY HARBOUR The port is one of South Africa’s eight operational commercial ports under the auspices of the Authority with great potential to play a key role in the shaping of South Africa’s future growth and prosperity. The combination of specialised cargo handling facilities, fast vessel turnaround, deep water infrastructure, excellent rail links to the hinterland and the large greenfield development potential, has made the port one of the world’s leading bulk ports, handling in excess of 80-million tons annually, representing approximately 60% of South Africa’s seaborne cargo.

SHIPBUILDING SECTOR GENERATES R1 BILLION PER ANNUM THE OCEAN

ECONOMY

The KwaZulu-Natal province is ideally situated to capitalise on the blue economy, as it boasts two of the SubSaharan continent’s largest ports as well as vast unexploited inland waterways, and incorporating a 600km coastline. Studies have shown that the country’s oceans could generate an estimated GDP contribution of between R129 and R177 billion, by 2033. Freight and logistics are centred primarily around two major transport hubs, namely the ports of Richards Bay and Durban, which are in turn connected to national and regional road and rail networks. Present estimates indicate that the local shipbuilding sector currently generates in excess of R1 billion per annum of

which 68% is in foreign currency. KZN is the country’s second most prolific boat building province and close onto 6 000 vessels visit the ports of Durban and Richards Bay, each year, thereby providing a steady stream of potential vessel repair opportunities. KZN is growing in the freshwater aquaculture sector, most of the trout farms are located within the midlands, while ornamental koi carp, catfish and tilapia are also evident throughout the province. The province’s large number of inland cold water tributaries is another contributing factor towards its potential status as a prominent aquaculture centre.

Pietermaritzburg campus, located in the scenic Natal Midlands, is an example of rich architectural heritage with an innovative academic programme.

LIVING IN

KWAZULUNATAL

KwaZulu-Natal represents a microcosm of the economic and social conditions of South Africa as a whole. In an idyllic climate that lends itself to an enviable, relaxed lifestyle, the businessfriendly environment includes cuttingedge financial institutions, providing specialised and professional business services in all fields. Combined with its abundant natural resources and diverse cultures, KwaZulu-Natal offers a worldclass business destination, where doing business is a pleasure.

EDUCATION KwaZulu-Natal has two universities, including one of the country’s largest universities, the University of KwaZuluNatal, which spans five campuses, one in Pietermaritzburg and the remainder in the greater Durban area. There are several technical colleges, the flagship being the Durban University of Technology.

HOUSING AND ACCOMMODATION Most homes in KwaZulu-Natal are sold or leased through a licensed realestate agent. A list of estate agents per geographic area may be found on www.propertywebsa.co.za or www.myproperty.co.za.

Elementary, primary and secondary schools may be found throughout every urban neighbourhood in KwaZulu-Natal, some of which are ranked among South Africa’s best schools.

There are also a large number of training institutions offering career training.

For further information, see www.kzneducation.gov.za www.kzneducation.gov.za.

HOME TO AWARD-WINNING GOLF COURSES AND A HOST OF WORLD-CLASS FESTIVALS AND EVENTS HEALTH AND WELFARE Throughout South Africa, both public and private healthcare is offered. Many corporate employers offer a subscription or a partially subsidised subscription to a medical insurance fund or medical aid fund. Primary healthcare is available free of charge at all government hospitals. For more information on the KwaZulu-Natal Health Department, you can visit www.kznhealth.gov.za. LEISURE KwaZulu-Natal’s subtropical coastline is washed by the warm waters of the Indian Ocean, the hinterland is swept by sweet savannah and the province is protected by the towering magnificence of the Drakensberg Mountains.

The province generously caters for almost every taste imaginable from historical sites, game reserves and country meanders to arts and crafts, the infamous bunny chow and fascinating cultural experiences. KwaZuluNatal is also home to award-winning golf courses and a host of world-class festivals and events.

INTERVIEW

Improving valuations and rating Janet Channing, Managing Director of MetGovis, explains the importance of reliable property information. What does MetGovis do?

BIOGRAPHY Janet Channing, Managing Director of MetGovis, is a registered professional property valuer. Janet has extensive experience within local government, specifically in the areas of municipal valuation and rating. Janet is a member of the South African Council for the Property Valuers Profession and the South African Institute of Valuers, where she served on the KZN Branch Executive. Janet’s qualifications include a Master's in Applied Ethics, National Diploma in Real Estate, a project management diploma and a post-graduate diploma in human resources management. She is a RICS commercial mediator, an accredited trainer, moderator and assessor. She endorses the need for an accurate geospatial property register as the hub for all property related data within municipalities. KWAZULU-NATAL BUSINESS 2018/19

MetGovis provides property software and consultancy solutions to clients within the public sector. Our core business provides technology solutions to support municipal valuations and rating processes. The flagship solution is a valuation roll management system known as MetVal. This solution interfaces with the municipal billing systems and extracts business intelligence to inform and develop revenue management strategies for municipalities. The process starts with an assessment of how completely and correctly a municipality is currently billing, where there is “revenue slippage” and how it may be done better. The MetGovis InSight product provides accessible spatial reports showing the details decision-makers need. Pictures and maps are quick to interpret and understand. Why is the Municipal Regulations on a Standard Chart of Accounts (mSCOA) important?

mSCOA prescribes the standardisation of local government budgeting, transacting and reporting to ensure transparency and improve account-ability in municipal finance management. The objective is better reporting uniformity and easier comparison of information in respect of revenue, expenditure, assets and liabilities. Valuation rolls are an important asset, containing as they do the market values for all registered properties. The valuation roll is housed and maintained within a valuation roll management system, such as MetVal. Why is an accurate spatial property register important?

The spatial property register comprises all registered and unregistered properties within the municipal jurisdiction. This is the single version of the truth and the hub of all property-related data within the municipality. All revenue needs to be reported against its source and all expenditure should be reported against where the services are delivered. An accurate property register and the right software reporting platform is like having “municipal google in your pocket”. Where are you active?

We have an extensive national footprint and our clients in KwaZuluNatal include Newcastle, Msunduzi, uMhlathuze, Umvoti, Ulundi, Mthonjaneni and uPhongolo.

WE MAKE IT EASY MetGovis is the leader in property & revenue management solutions

ACCESSIBLE RESPONSIVE TECHNOLOGY PLATFORM

MetVal mSCOA enabled and MPRA compliant Valuation Roll Management System to manage the entire valuations and rating process.

OUR SERVICES MetVal Valuation Roll Management System mSCOA Enabled & MPRA Compliant Property Valuation and Consulting InSight - Revenue Management Training & Skills Development

MetVal integrates the consolidated financial and valuation rolls with the relevant municipal billing system on a roll-by-roll basis. MetVal uses an Automated Programmatic Interface (API) to achieve seamless integration.

Rates Consultancy Services Software Development

The system's CAMA provides regression modeling for the mass valuation of property for municipal rating purposes. MetVal provides a suite of standard reports including for all the statutory notices required by the MPRA under sections 49, 53 and 78.

Asset Management Lease Management Roll Validation GIS Services

MetVal works in real-time to maximise municipal revenue by maintaining the valuation roll and integrating with the billing system. MetVal has a sophisticated audit trail and other security features that promote good governance, accountability and transparency for all users of the system.

InSight A toolkit that uses spatial reporting to identify billing discrepancies and sources of ‘unknown’ revenue thereby supporting effective municipal revenue management. A complete and accurate geospatial property register will provide municipalities with the relevant spatial details to identify where arrears are being incurred, to map their debtor analysis and to acknowledge the origin of their revenue. The benefits to the municipality are a comprehensive spatial report indicating how completely and how correctly the municipality is billing. This revenue intelligence will support a Clean Audit result for the municipality.

Please contact us on 033 343 2868, via email at admin@metgovis.co.za or visit our website at www.metgovis.co.za

KWAZULU-NATAL BUSINESS 2018/19

SPECIAL FEATURE

Durban’s inner city is to be revitalised New plans and a North Coast boom offer investment opportunities in eThekwini.

he metropolitan municipality of eThekwini stretches from Umkomaas in the south to the King Shaka International Airport in the north, Cato Ridge on the N3 marks the western boundary with Durban’s harbour mouth the easternmost point. The city of Durban is growing fast and it is growing in two quite different ways – northwards in the vicinity of Umhlanga and the airport, and upwards in the inner city as densification becomes a key priority in boosting the city economy and improving the lives of its residents. The inner city re-imagined Six years ago, the eThekwini Municipality adopted a densification strategy which entails careful planning along three main urban corridors which connect to the city centre. Land-use management along these corridors will encourage diverse investments while at the same time introducing an Integrated Rapid Public Transport Network (IRPTN). An Inner City Local Area Plan (LAP) for Durban has been developed that aims to make the inner city of Durban “Africa’s leading, most vibrant, liveable, walkable City Centre”. Developed for the Strategic Planning unit of the eThekwini Municipality by a Joint Venture called IPPU, the LAP is based on four main principles: • the connected city: tackling the legacy of the disconnected city of apartheid, the plan promotes the integration of different modes of transport (bus, taxi, pedestrian, rail, etc). • the walkable city: the aim is for residents to be five minutes’ walk from public transport, shops, schools, healthcare facilities. A good variety of residential accommodation is key. • land-use intensity: the plan proposes that land-use approvals be more flexible, allowing for more variety and greater density. The plan cites an example of art gallery at street level, with offices above and accommodation on top. If more people live in an area, then shops become more viable and it is easier to provide bulk services. • starting with small projects and finding ways of championing the development of the inner city. The IPPU Joint Venture comprises Iliso, TPI, PMSA, UrbanEcon including Cox Architecture, Urban Solutions, Urban Earth, Jo Lees and Joe Kitching. The Point Waterfront Development is a major project that is in KWAZULU-NATAL BUSINESS 2018/19

the process of transforming what was an under-utilised and somewhat rundown part of the city into a vibrant, multiuse precinct. Some projections put the total potential investment value of the project at R40-billion and the number of permanent jobs to be created at 6 750. It is an ambitious plan that links the city's beach promenade and the harbour. It offers a property use mix of office space, retail shops, residential dwellings and leisure options. The 55ha site has already seen significant investment. A cruise terminal in the harbour backing on to the Point has been approved. Other major projects in the inner city include: •

•

the Warwick Junction transport interchange which has received road upgrades but could be an even greater enabler of trade the Centrum Government Precinct which will formalise the relationship between buildings such as the International Convention Centre and a related hotel, the library, council chambers and the redevelopment of Gugu Dlamini Park.

Northwards Two things have changed the

SPECIAL FEATURE landscape of the area north of the city of Durban. The one is the building of the King Shaka International Airport and the associated Dube TradePort; the other is the conversion by sugar giant Tongaat Hulett of its land holdings into property developments. Dube TradePort is a 3 000-hectare development that encompasses the airport and is ideally situated for any logistics business as it is very close to Africa’s busiest cargo port (at Durban) and 140km from the deepest natural harbour in the southern hemisphere where the Port of Richards Bay and the Richards Bay Industrial Development Zone (RBIDZ) are located. Dube TradePort is a Special Economic Zone and it encompasses: • Dube Cargo Terminal. • Dube Tradezone: 77 hectares, with plans in place for 300 hectares, fully-serviced industrial estate within the SEZ. Suitable for warehousing, manufacturing, assembling, cargo distribution, etc. • Dube City: 12 hectares of office, retail and hospitality space.

KWAZULU-NATAL BUSINESS 2018/19

•

Dube Agrizone: intended to support growing, packaging and distribution of high-value perishables and horticultural products. Dube iConnect: the precinct’s dedicated IT and telecommunications provider and the only locally hosted cloud service in the province.

The 1 300-hectare Cornubia integrated human settlement development is a huge undertaking. Tongaat Hulett Development, the eThekwini Municipality and the national and provincial departments responsible for housing are working together on a series of developments that aim to integrate working and living so that people do not have to travel vast distances to and from work. The southern part of the project will cater for 24 000 homes, 170 hectares of industrial land and more than one-million square metres of commercial f loor space. This will be complemented by public open spaces (430 hectares) and social and community facilities. T he Cornubia Indus trial and Business Estate is already almost sold out and the Cornubia Retail Park is likely to attract considerable interest because of its location on the M41. Tw o o t h e r To n g a at H u l e t t developments on the North Coast are progressing rapidly: • Sibaya: bisected by the M4, this area has the Sibaya Casino complex and is intended to cater for resort-style accommodation, hotels, conference and entertainment facilities and office parks. • Ridgeside: between the M4 freeway and the Umhlanga Ridge Town Centre, residential and office space.

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FOCUS

Supertech takes top honours The Supertech Group took top honours at the BMW SA National Dealer Awards.

waZulu-Natal’s biggest BMW dealership group, Supertech Group, was a big winner at the BMW South African National Dealer Awards for 2017. With the acquisition of two new dealerships in Pietermaritzburg and Shelly Beach, 2017 was an exciting year for the Supertech Group. Group Chairman Shabir Tayob said he was proud of the three dealerships that took awards and looks forward to seeing the two new dealerships take awards at the next awards event. The group now has dealerships in Durban, Pinetown, Newcastle, Shelly Beach and Pietermaritzburg. Supertech also runs two BMW-approved repair centres in the province. Altogether, the Supertech Group won seven first-place awards with Supertech Durban winning the prestigious Retail Dealer of the Year (Large to Extra-Large) for the third consecutive year. Durban also won the M-Dealer of the Year and BMW Finance Dealer of the Year. The Supertech Newcastle dealership, which falls in the Extra Small-toMedium Category, took the highly acclaimed Dealer of the Year and the Retail Dealer of the Year. Finally, Supertech Pinetown took the overall Best Customer Service Award in the country. The Pinetown team also received second place in the BMW Finance Dealer of the Year in the Extra Small-to-Medium dealer category. Supertech Group Managing Director M Ubaid Tayob (right) and Chairman Shabir Tayob accept the Dealer of the Year in the XL The Supertech – L category from BMW SA and Sub Sahara Managing Director Durban and Newcastle Tim Abbott and BMW SA and Sub Sahara Sales and Marketing Director Lou-Anne Fitzsimons. Aftersales teams also

CONTACT INFO Physical address: 8 Cliff Crescent, Bellair, Durban Postal address: PO Box 41033, Rossburgh 4072 Telephone: +27 31 4651981 Email: yusuf.moolla1@bmwdealer.co.za Website: www.supertechgroup.co.za

KWAZULU-NATAL BUSINESS 2018/19

stole the show at the National Aftersales Awards held several days after the Sales Awards. Supertech Group Managing Director M Ubaid Tayob said he was extremely proud of his team for the wonderful achievements. “We would not be here if it was not for the support of our customers. For our loyal customers that have always been with Supertech, I thank you for always making the Supertech Group your preferred dealership, and for customers that have just joined the Supertech family through sales or service, I thank you for giving us the chance to give you excellent service and I hope that you stay with the Supertech family for many years to come.” He added that the Durban dealership is the only Extra-Large Dealership in the country, and as the flagship dealership, had to set the example for the group. He also shared his gratitude for the Group’s strong partnership with BMW Finance and thanked the finance team for their continued support. Mr Tayob thanked BMW SA and their directors for believing in his dream to grow the brand and putting their faith and support behind the Group. This is indeed a milestone as the group positions itself as the largest BMW Group in KwaZulu-Natal and one with a strong reputation of excellence in service while creating exciting experiences for each client.

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Supertech Group Supertech Durban 8 Cliff Crescent, Bellair Tel: 031 941 3072 www.bmw-supertech.co.za

Supertech Pinetown 141 Josiah Gumede Road, Durban Tel: 031 941 3073 www.bmw-supertechpinetown.co.za

Supertech Newcastle 1 Albert Wessels Drive, Newcastle Tel: 034 940 0854 www.bmw-supertechnewcastle.co.za

Supertech Pietermaritzburg 9 Armitage Road, Pietermaritzburg Tel: 033 897 8800 www.bmw-supertechpietermaritzburg.co.za

Supertech Shelly Beach 55 Main Road, Shelly beach Tel: 039 315 0020 www.bmw-supertechshellybeach.co.za BMW Financial Services (South Africa) (Ply) Ltd. is an Authorised Financial Services and Registered Credit Provider NCRCP2341. Terms and Conditions apply. *Vehicles less than one-year old with a maximum of 20 000 km mileage.

SPECIAL FEATURE

New areas are attracting investment Industrial parks are planned for every district in KwaZulu-Natal.

MOZAMBIQUE

he large and busy ports of KwaZulu-Natal inevitably attract a good proportion of investor interest but the varied opportunities that the province holds for good business propositions goes far beyond Durban and Richards Bay, which is also home to the Richards Bay Industrial Development Zone. The Provincial Government of KwaZulu-Natal intends establishing one industrial park within each of the province’s 10 district municipalities, focussing on existing strengths. These industry-focused hubs will attract new investments and help existing businesses through economies of scale and by improving access to markets and supply chains. MUNICIPALITIES IN KWAZULU-NATAL There is one metropolitan municipality in KwaZulu-Natal. Construction on the industrial park in the eThekwiniSWAZILAND Metropolitan Municipality, an automobile supplier park, is expected to begin in 2019. In most of theMpumalanga other areas, land has been secured and feasibility studies have been completed. The design of the parks and the provision of infrastructure is currently under way and some tenants have been identified. The Department of Economic Development, Tourism and Umhlabuyalingana

Jozini

uPhongolo

eDumbe

eMadlageni Newcastle

uMkhanyakude

Abaqulusi

Amajuba

Free State

Zululand

Dannhauser

KZDMA27 Ulundi

Endumeni Emnambithi/ Ladysmith

KZDMA23

Nqutu

Mtubatuba Mthonjaneni Nkandla

Msinga

Ntambanana

uThungulu

Ukhahlamba uMtshezi

Mbonambi

uMhlathuze

uMlalazi

Imbabazane

uMvoti

KZDMA23

LESOTHO

KZDMA27

Hlabisa

uMzinyathi Indaka

uThukela

The Big Five False Bay

Nongoma

Mpofana

KZDMA22

Maphumulo

uMshwathi

uMngeni

iLembe

uMgungundlovu Impendle

KZDMA43 Kwa Sani

Ingwe

Sisonke

KwaDukuza Mandeni

Maphumulo

Msunduzi Richmond Mkhambathini

eThekwini Metropolitan Municipality

INDIAN OCEAN

uBuhlebezwe

uMzimkulu Greater Kokstad

Vulamehlo

Ugu

Umdoni

Umzumbe uMuziwabantu Ezinqoleni Metropolitan/District Municipality Boundary

Hibiscus Coast

Eastern Cape

KWAZULU-NATAL BUSINESS 2018/19

Local Municipality Boundary

District Municipality

Amajuba uMlalazi

Local Municipality

Environmental Affairs is the implementing agency on behalf of the Provincial Government. Possible investment opportunities in these districts have been identified by Trade & Investment KwaZulu-Natal (TIKZN). DISTRICT MUNICIPALITIES AMAJUBA Industrial park focus: clothing and textiles. The economic powerhouse is Newcastle: coal-mining, steel processing, chemicals and textile manufacturing are major activities. Some old coal mines are being reopened by new coal companies. The rail line to Gauteng runs through the area and the R34 carries road traffic to Richards Bay. Game farms, trout fishing and hiking are part of an attractive package for tourists, and Zululand is popular for cultural experiences and the area is rich in Anglo-Boer War history. Possible investment: the cultivation and processing of soya beans. South Africa has a high demand for oilseed cake but the country is a net importer of soybean products. HARRY GWALA Industrial park focus: furniture and dairy. Good soils, dramatic mountain landscapes and a plentiful supply of water help to make this district perfectly suited to dairy farming,

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SPECIAL FEATURE forestry and tourism. The main towns are Kokstad and Ixopo. The Drakensberg Mountains define the district’s western boundary. The Harry Gwala Development Agency facilitates investment. Possible investment: the HGDA believes that niche sectors such as avi-tourism (birding), rail tourism and mission tourism hold great potential. Ten percent of the milk produced in South Africa comes from this area, and volumes are set to grow.

KING CETSHWAYO Industrial park: Richards Bay Industrial Development Zone The Richards Bay Industrial Development Zone (RBIDZ) is located within the district municipality and is a major economic node in itself because of its huge coal export terminal, deepsea port and aluminium smelters. Mining is an important sector in this region. The other major urban centre is Empangeni which has several educational institutions, including the University of Zululand. Possible investments: key sectors include agri-processing, ICT and telecommunications, manufacturing (proximity to aluminium works opens possibility for the manufacture of discs, pistons and beverage cans), logistics and renewable energy. The RBIDZ offers very attractive local and national incentives and support for investors.

Shepstone and Margate, which has an airport. The Ugu South Coast Development Agency is dedicated to supporting inward investment. Bananas are the main product of a thriving agriculture sector. One banana farm has successfully been converted into a speciality coffee producer. Beaver Creak makes about seven tons of coffee every year near Port Edward, just south of which Caribb ean E s tates of fers accommodation at the mouth of the Umtamvuna River on the KwaZulu-Natal/Eastern Cape border. Possible investments, both at Umtentweni Beach: Hibberdene mixed-use development including a service station, residential and commercial components; John Mason Park, an area with sea frontage, conference and amphitheatre facilities, a 100-room hotel, residential units, a water park and a skate park. Ugu District has three industrial estates – Shelley Beach, Marburg and Ifafa (being developed). Furniture manufacturing could be a good option, taking advantage of the nearby plantations. In agri-processing there is scope for expansion of timber and sugar cane and for the processing of tea tree oil and aloe essential oils.

UGU Industrial park focus: processed perishable goods. Excellent beaches, a subtropical climate and good tourism inf r as truc ture make the South Coast a very attractive destination. Large towns include Port

UMGUNGUNDLOVU Industrial park focus: leather processing. This is a fertile agricultural region, producing sugar cane, fruit, animal products, forestry and dairy products. Pietermaritzburg is the provincial capital and home to a major aluminium producer

ILEMBE Industrial park focus: renewable energy. The N2 is the main arterial running through the district, giving excellent access to both Durban and Richards Bay. The Dolphin Coast is a major node for tourism. With the King Shaka International Aiport (KSIA) and the Dube TradePort lying just south of the iLembe District in the eThekwini Municipality, a partnership has been created between the two municipalities and the provincial government to develop a renewable energy technology innovation hub. Enterprise iLembe (Pty) Ltd drives investment into the area. At Ndwedwe, 26 biodigesters produce gas for cooking as part of the Working for Energy programme of the South African National Energy Development Institute (SANEDI). Possible investment: a 250-room resort, Nonoti Beach Resort, at KwaDukuza (formerly Stanger). This would include self-catering units, a conference facility and six restaurants.

The Umtamvuna River is one of the many tourist attractions in the Ugu District.

KWAZULU-NATAL BUSINESS 2018/19

FOCUS along with several manufacturing concerns, including textiles, furniture, leather goods and food. The city has good transport links along the N3 national highway, excellent schools and a lively arts scene. The Midlands Meander is a popular tourist destination Possible investment: the Pietermaritzburg’s Edendale Town Centre is being transformed to attract manufacture of polysilicon for investment. PV solar energy installations at Pietermaritzburg. The project is at the conceptual stage. UMKHANYAKUDE Industrial park focus: to be decided. The Isimangaliso Wetland Park extends 220km along the northern reaches of the province, to the border with Mozambique, and offers unrivalled birding, game viewing, deep-sea fishing, turtle tours, kayaking and whale-watching. It is a World Heritage Site and, together with the Hluhluwe-uMfolozi Game Reserve, forms the core of the tourism and conservation offering in the province. With agriculture the other dominant economic activity in the area, any new investment would have to be ecologically sensitive. Possible investments: ethanol manufacturing plant near Jozini on the Makhatini Flats using sugar cane as a feed stock; an entertainment complex at Hlungweni Peninsula within the Tembe Tribal Authority, 30km north of Sodwana Bay. UMZINYATHI Industrial Park focus: to be decided. The area hosts one of the most important historical sites from the colonial era, Isandlwana. The N3 highway, a vital corridor of trade and traffic between KwaZulu-Natal and Gauteng, The Alfred Duma Local Municipality offers investors industrial space at runs through the district and would good rates. support logistics operations. The chief town is Dundee which was founded because of the presence of coal. The Majuba TVET College has a campus in the town. Possible investment: the cultivation and processing of soya beans. South Africa has a high demand for oilseed cake but the country is a net importer of soybean products. This project is in the concept phase but initial thinking is to have facilities in two districts in the north of the province. KWAZULU-NATAL BUSINESS 2018/19

UTHUKELA Industrial park focus: electronics. Larger towns include Estcourt, Colenso and Ladysmith. Predominantly rural, the district encompasses two of the greatest natural assets in the province in the Thukela River and a part of the Drakensberg mountain range, which attracts hundreds of thousands of visitors. Sumitomo Rubber Industries and Defy are manufacturing companies with a presence in the Alfred Duma Local Municipality, which also hosts TVET college facilities. Possible investment: the Alfred Duma Local Municipality offers industrial stands to new investors at good rates; the development of a cableway system in the Drakensberg (near Bergville) with entertainment and accommodation facilities. ZULULAND Industrial park focus: agriprocessing. Zululand is a popular destination for cultural experiences and the area is rich in Zulu history and Anglo-Boer War history. Vryheid and Ulundi are the main towns. Much of the area falls under traditional authorities and it is predominately rural. Possible investment: Agriprocessing and tourism are the main sectors that are most suitable for investment. Development of a heritage site at Nongoma to serve as a catalyst for other sites to offer traditional Zulu experience, encompassing arts and crafts, agriprocessing, traditional medicines and cosmetics and leveraging the profusion of aloe plants in the district.

FOCUS

Global leader Our strategy is to deliver sustainable value by providing high-quality packaging and paper solutions.

ondi is a global leader in packaging and paper, employing around 26 000 people in over 30 countries. We are fully integrated across the packaging and paper value-chain – from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is embedded in everything we do, with clearly defined commitments across 10 action areas. We delight our customers with our innovative and sustainable packaging and paper solutions. Our major operations are in central Europe, Russia, North America and South Africa. In 2017, Mondi had revenues of €7.1-billion and a return on capital employed of 19.7%. Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited and a premium listing on the London Stock Exchange for Mondi plc. We are a FTSE 100

constituent and have been included in the FTSE4Good Index Series since 2008 and the JSE's Socially Responsible Investment (SRI) Index since 2007. Mondi South Africa Our South African business sustainably manages plantation forests and manufactures and sells pulp, virgin containerboard and uncoated fine paper. We have around 1 500 employees working in our forestry operations and two mills. KWAZULU-NATAL BUSINESS 2018/19

FOCUS

Mondi South Africa Strategic advantages.

ur focus is on leveraging our strong domestic market position and the global competitiveness of our Richards Bay mill. With a history spanning over 50 years, we understand the value of being efficient, costcompetitive and customer-focused. Our passion for performance will always be central to the way we run our business and is demonstrated through a continuous focus on quality, productivity and efficiency. The fundamental principle behind operational excellence at Mondi is the desire to do more with less. We invest in and manage our business to ensure that our manufacturing operations maintain

Mondi Rotatrim.

New woodyard at Richards Bay mill.

Growing responsibly and inspiring our people for long-term success

their cost advantages and are well-positioned for growth opportunities The new woodyard at our Richards Bay mill is contributing to improved efficiencies in wood handling processes in our forests and providing higher-quality fibre. The investment to expand our product range by KWAZULU-NATAL BUSINESS 2018/19

producing unbleached kraftliner in addition to white-top kraftliner at our Richards Bay mill has been welcomed by our customers. Our Baywhite, Baycel and Baykraft products are certified for food packaging (ISEGA) and we have adopted Good Manufacturing Practice (externally certified). We manage about 251 000 hectares of certified plantation forests in South Africa in a way that secures their long-term biological integrity, social value and productivity. Credible third-party certification of our forests is an important part of our management approach. It assures compliance with globally recognised standards for sustainable forest management.

We believe that being part of the solution to global challenges will secure the long-term success of our business and the wellbeing of our communities and other stakeholders.

FOCUS Responsible forest management involves increasing long-term productivity and preserving eco-system values in rural landscapes and protecting high conservation value areas such as wetlands. We focus on maintaining an effective network of high conservation value areas and valuable habitats, and on imitating natural dynamics for key types of ecosystems where possible. We promote a landscape approach to freshwater stewardship. The focus of the long-standing WWF-Mondi Water Stewardship Programme (previously the WWF-Mondi Wetlands Programme) has grown from managing and rehabilitating wetlands with different groups of land-users (including Mondi) to catalysing water stewardship at the landscape scale, including ensuring collaboration and action by different land-users in the uMngeni and Mvoti River catchments, both of which are strategically important water-supply areas for KZN’s economic hubs. In 2014, following many years of collaboration, Mondi Group and WWF launched a global partnership to promote responsible forestry and a sustainable pulp and packaging sector. In 2017, this global partnership was extended for another three years. Mondi Zimele Our local enterprise initiative, Mondi Zimele, has an excellent track record of creating sustainable businesses and jobs. In addition, it helps to maintain a steady supply of high-quality fibre from a network of small forest enterprises, and this has continued to make a positive impact on the lives of people in our rural communities.

Mondi Zimele assists small business, Amahlathi Ethu.

Community investment Communities living near our mills and on our forestry land benefit from our extensive community engagement and investment programme. Health and education are key priorities for us. A leading initiative is the Mkondo Development Project, a pioneering publicprivate partnership focused on improving the living conditions of people living in households in isolated villages on our forestry land, and to find sustainable solutions to alleviate poverty and offering security of tenure. The pilot Jabulani Agrivillage has been completed and eight other agri-villages are in progress. A new exciting development in 2018 has been working with the Ligbron e-Learning System at rural schools, bringing innovative learning techniques and access to quality maths and science tuition to students to provide a good foundation on which to build their careers and the economy. Seven mobile clinics received 82 230 visits by forestry contractors and local communities in 2017. Our wider community investments continue to assist and empower schools, university students, youth, forest smallholders and entrepreneurs, as well as provide healthcare and support.

KWAZULU-NATAL BUSINESS 2018/19

PROFILE

Msunduzi Municipality: City of Pietermaritzburg Strategic location is driving economic growth.

Vision A safe, vibrant city in which to live, work, play, and do business.

Mission To ensure that the municipality functions effectively and in a sustainable manner in order to deliver service excellence to the community.

Key Development Projects at Msunduzi Municipality

he Msunduzi Municipality is the second largest in KwaZulu-Natal and is proudly the capital of the province, incorporating the picturesque city of Pietermaritzburg. The confirmation of capital status has entrenched the city’s role and position as the administrative and political hub of KwaZulu-Natal. Msunduzi is also moving in the direction of achieving metropolitan status.

Manaye Hall Precinct This investment development seeks to enhance and empower the economy and entrepreneurs within the Imbali area and surrounds, and will further provide a link with the existing value chain in the area.

The city is strategically located along the all-important Durban-Gauteng movement corridor, recognised in the National Development Plan for South Africa as Strategic Intervention Plan 2, commonly referred to as SIP2. Industrial development vision Msunduzi aims to see its industrial sector grow so that it remains the engine that powers the local economy, and that it does so with particular regard to providing dignified and safe work for its residents. Another goal is that the industrial and business sector stakeholders partner with the municipality in striving for a carbon neutral industrial future, which takes into account the critical need to prevent further climate change, and to ensure that there is protection of the environment comprising the people, the flora and the fauna that make up local ecosystems. This will ensure a truly sustainable future. KWAZULU-NATAL BUSINESS 2018/19

Msunduzi Integrated Public Transport Network The overall goal of this initiative is to improve the quality of life for Msunduzi’s residents through the provision of an integrated public transport network that is rapid, safe and secure, convenient, clean, affordable, disability friendly and socially equitable. The dominant public transport corridor, starting in Edendale in the south-west, is routed through the CBD and across the N3 freeway to Northdale, a distance of over 17km.

PROFILE Neighbourhood Development and Partnership Grant The NDPG is driven by the notion that public investment and funding can be used creatively to attract private and community investment to unlock the social and economic potential within the targeted neglected townships and neighbourhoods. National Treasury has made successive allocations for this programme of R40-million (2017/2018) and R42.36-million (2018/2019). Other projects which fall under the NDPG:

• civic building • informal trading stalls; piazza • Mt Partridge • Thwala Road public realm • Promenade 1 • Promenade 2

Liberty Midlands Mall Phase 3 The Liberty Midlands Mall is a regional shopping centre, and given its position on the N3 national highway, the centre captures the wider regional market (Pietermaritzburg and surrounding area along the N3 corridor).

Youth Enterprise Park This project, located in Pietermaritzburg city centre, is to assist with improving the regularisation of informal trade and to provide a more sophisticated space for businesses in this sector so that traders can move up from street trading.

CONTACT INFO Key personnel Mayor: Councillor Themba Njilo Municipal Manager: Mr Sizwe Hadebe General Manager Sustainable Development and City Entities [Acting]: Mr Radha Gounden Senior Manager[Acting]: Ms Nombuso Hlophe Contact office: Business Retention and Expansion: Ms Mandisa Msimang Telephone: 033 392 3757/2493 Email: mandisa.msimang@msunduzi.gov.za Website: www.msunduzi.gov.za

KWAZULU-NATAL BUSINESS 2018/19

PROFILE

Award-winning terminal Richards Bay Coal Terminal wins Bulk Logistics Port/Terminal of the Year.

ichards Bay Coal Terminal (RBCT) is a worldclass coal export terminal situated in the Port of Richards Bay. The terminal was opened in 1976 with an original capacity of 12-million tons per annum (mt/a). The terminal provides South Africa’s Coal Exporting Parties (CEPs) with a world-class logistics service that facilitates the export of coal.

Asia

81.6%

Europe

10.1%

Africa

7.8%

South America

0.5%

All RBCT’s operations and administrative functions are conducted in Richards Bay. Safety achievements On 23 December 2017, RBCT achieved a significant milestone in safety performance when two-million LTI-free man-hours were recorded. We are exceptionally proud of this significant safety achievement and attribute it to our continued pursuit of the goal of a safe workplace. This milestone was achieved at a time when RBCT commissioned two shiploaders, a massive machine project. Achieving this milestone is testament to a proactive safety culture that prevails in our work environment. This achievement is a combination of our collaborative safety efforts; it specifically points to the genuine care the employees and contractors have for each other. We have made impressive gains with the implementation of the leading indicators, such as the COBRA (Behaviour Based Safety) process, near missreporting, hazard identification, risk assessments and an overall interaction amongst the workforce on safety issues. As testament to our ongoing safety awareness, RBCT also won the 2017 Business Excellence Safety Award for the second year in a row. This award reaffirms RBCT’s diligence in upholding safety standards.

EXPORT DESTINATION PER CONTINENT RBCT is positioned at one of the world’s deepsea ports and handles large ships and large volumes of coal. The 276-hectare site currently boasts a quay that is 2.2km long with six berths and four ship loaders, with a stockyard capacity of 8.2-million tons. RBCT shares a strong cooperative relationship with South Africa’s national utility, Transnet, which provides the railway services linking the coal mines to the port, and the shipping coordination of more than 900 ships per annum. KWAZULU-NATAL BUSINESS 2018/19

Production records achieved The tonnage received in 2017 increased from 72.58Mt

PROFILE in 2016 to 75.60Mt (4% higher). The 2017 tonnage is the highest tonnage delivered by Transnet Freight Rail (TFR) within a calendar year. The Train Turnaround Time (TTT) was four hours three minutes in 2017 against the RBCT internal target of three hours 54 minutes. TTT is a value-chain contracted duration for offloading and handing back of trains to TFR. The value chain TTT is reflected in the signed Service Level Agreement between RBCT and TFR and the target is an average of four hours 18 minutes. The figure for trains that were tipped and bypassed directly to the vessels was 19% in 2017 compared to 17% in 2016. We continue to be aligned with our business partner, TFR, to ensure the supply chain performs well and contributes to increasing volumes. Achievements In 2017 RBCT was nominated by Transnet National Ports Authority (TNPA), our strategic business partner, as the Bulk Logistics Port/Terminal of the Year and it is with great excitement that RBCT was declared the winner of this prestigious Award (Global Ports Forum International Award). Locally, RBCT was nominated for six Zululand Chamber of Commerce and Industry awards. RBCT won five awards and was a runner-up in the sixth category. The significance of these awards is that they were awarded in areas that matter the most to RBCT, people, safety, environment and logistics.

From left: Mr Jabu Mdaki, General Manager Operations, Mr Preston Khomo, Port Manager and Mr Alan Waller, CEO.

projects that can build a better South Africa. In 2017 we recognised the need to focus on early childhood development, education and environment. Due to the water shortages we faced, we regarded this as an integral component in building a better future and life for all. In 2017, a total of R3.2-million was invested in Community Social Investment (CSI) projects.

RBCT Executive Team

Community development

CONTACT INFO

Our slogan, “Coal to the world, growth to the nation” depicts our sustainable commitment to community development over the years. Our aim is to participate in programmes that benefit the wider community and sustainable

Physical address: Richards Bay Coal Terminal (Pty) Ltd, South Dunes, Richards Bay Harbour Postal address: PO Box 56, Richards Bay 3900 Tel: +27 35 904 4911 Website: www.rbct.co.za

KWAZULU-NATAL BUSINESS 2018/19

ADVERTORIAL

Nedbank’s new brand promise focuses on client Nedbank’sthat new engagement willbrand create apromise better understanding focuses onpersonal client engagement thatneeds across clients’ and business banking

will create a better Siphamandla Ndhlovu, Provincial understanding General Manager in KwaZuluNatal, Nedbank worksGeneral with communities to deliver Kevinexplains de Beer, how Nedbank Provincial Manager in the banking solutions. Free State and Northern Cape, explains how Nedbank works with communities to deliver banking solutions. Our expertise will help clients navigate Nedbank also leverages its strong market positioning with businesses and the public sector, encouraging challenges and meet their goals them to bank their employees through its employee Nedbank continues to build on its clientbanking offering. This forms part of Nedbank’s centred strategy aimed at delivering Banking and Beyond philosophy, which is aimed distinctive experiences and channels at supporting business owners to make informed of choice for businesses and clients in decisions that will enable them to grow and take their KwaZulu-Natal. This has seen the bank businesses to the next level. simplify and enhance its product offering in line with its value-banking philosophy This is a unique service for clients, with financial based on simplicity, transparency and fitness training a key aspect of the offering. Our affordability. Innovation and technological wide range of products and services include the advancements, as well as training and Nedbank Ke Yona Plus transactional account, which development of staff, have been key pillars comprises funeral cover, a personal loan facility, the in achieving the bank’s objectives. Since 2012 Nedbank has launched several first-tomarket innovations, such as the award-winning Nedbank App Suite™, the home loans online digital channel and Market Edge™, as well as New Image outlets concept in communities locally and nationally. “Working with communities is entrenched in our values through community development, skills development, education and job creation, as well as environmental conservation. These play a vital role in building a sustainable economy and vibrant society. We believe our fast-growing presence in communities goes a long way towards enabling greater financial inclusion while contributing towards economic growth,” concludes Ndhlovu. Nedbank has also invested in innovative alternative distribution outlets through its strategic partnership with Boxer stores. These partnerships, which span over 15 years, enable communities to get access to financial services every day of the week, even Sundays and public holidays.

JustSave Account and the Send-iMali money transfer solution, enabling clients to transact, borrow, save and take out cover. To encourage the youth to save and build their financial fitness from an early age the Nedbank 4me offering enables the youth to transact and save with the benefit of earning preferential interest. Nedbank 4me comprises a full transactional banking account with no monthly fees, free initial transactions and thereafter reduced pay-as-you-use pricing, free eNotes and self-service banking. This wide range of offerings from Nedbank makes banking more accessible to all. Should you be interested in learning more about how Nedbank can assist you grow your wealth and see money differently, for more information call Siphamandla Ndhlovu on +27 83 637 8552 or visit www.nedbank.co.za.

ADVERTORIAL

Making it easier to brand do business with Nedbank Nedbank’s new promise Business focusesBanking™ on client engagement that Siphamandla Ndhlovu, KwaZulu-Natal Provincial Business Banking will create a Nedbank better Manager, explains how can understanding help business owners see money differently. Kevin de Beer, Nedbank Provincial General Manager in the Free State and Northern Cape, explains how Nedbank helps with continuity in case there is a change of works with communities to deliver banking solutions. relationship from a Business Manager point of view. Our approach is to understand the client’s business holistically and from that understanding, design tailormade banking solutions to suit the business needs of the client. Our “Wholeview Banking” approach enables us to understand the client’s cash receipts and payment cycle, their global trade transactions, foreign exchange hedging transactions and transactional banking needs which include cash handling. From this information, we are able to provide banking, payment and funding solutions that meet the client’s needs. We are therefore seen as a trusted partner by the business we serve as our banking solutions match the client’s needs and means.

“At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant solutions and a banking experience that is hasslefree. This allows you to concentrate on what’s most important to you – running your business,” says Ndhlovu. At the core of our Business Banking offering in KwaZulu-Natal is a relationship-based model. We believe in building a relationship with our client which helps elevate trust which becomes the solid foundation on which our banking decisions are made. A Business Manager is the key entry point into the bank. The Business Manager is supported by a Client Service team who ensure delivery of the facilities the client is afforded. The Client Service team also becomes a repository of client information where the client history and track record are held. This

Our banking offering covers a broad range of financial and advisory services to small and medium businesses in all sectors of the economy including Agriculture. We pride ourselves in our ability to make quick credit decisions as our Credit teams are located in the markets that we serve as opposed to being at a central location that is removed from the local market. Furthermore, based on the relationship foundation and our understanding of the client’s needs, we are able to extend our offering to the business owner in their personal capacity, their family and staff. In doing this, we answer Nedbank’s call to use our financial expertise to do good for individuals, families, businesses and communities within which we operate. Should you be interested in taking your business to its next level and improving staff engagement, and for more information about Nedbank’s specialised service offering please call Siphamandla Ndhlovu on +27 83 637 8552 or visit www.nedbank.co.za.

ADVERTORIAL

Nedbank’s new brand promise focuses onsmall client engagement Expertise in business aimed at that stimulating will create a better understanding growth ADVERTORIAL

Kevin de Beer, Nedbank Provincial General Manager in the Nedbank’s Melanie Reddy, Provincial Retail Relationship Banking Manager, Free State and Northern Cape, explains how Nedbank explains how Nedbank is committed to partnering with small businesses works with communities to deliver banking solutions. for growth.

For example, the Small Business Friday initiative, in association with the National Small Business Chamber, seeks to encourage everyone in South Africa to rally behind and support small businesses. The initiative calls on everyone to make a conscious decision to vote for small businesses through their hearts, feet and wallets; not only on Small Business Friday which is one particular Friday in a year, but every day.

“Small businesses are the mainstay of the economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the small-business sector. Over and above our small-business services solutions, we provide small-business owners with support that goes beyond banking, freeing up their time to truly focus on running their businesses,” says Reddy. Nedbank has built a solid reputation as a bank for small businesses through initiatives such as Small Business Friday, free small-business seminars and the SimplyBiz.co.za platform – all geared to support the small- and medium-sized enterprises sector.

Our offering expands to the Professional Banking segment of the market. In Professional Banking we realise that time is of the essence in your professions and hence we offer you a dedicated banker with a strong support team to take care of the needs of you, your business and your household. SimplyBiz.co.za is a free-to-join value networking portal designed especially for small businesses. The online portal helps small businesses improve their business administration skills, keep up with the latest trends, network with other small businesses and share ideas. Should you wish to tap into our small business expertise to help your business goals, why not get in touch with Nedbank’s Small Business Services. Call Melanie Reddy on +27 31 364 2045 or send an email to Melanier@nedbank.co.za.

ADVERTORIAL

Nedbank’s new brand promise focuses on client engagement that Making banking accessible to all will create a better understanding At Nedbank we believe in delivering a choice of distinctive clientADVERTORIAL

Kevin de Beer, Nedbank Provincial General Managerrelationships in the centred banking experiences that create deep, enduring Free our State and Northern Cape,Provincial explains Sales how Nedbank with clients, says Sean John, Manager, KwaZuluNatal Networks. worksBranch with communities to deliver banking solutions.

Our distribution presence in KZN sees us with 85 traditional branches, 32 kiosks in Boxer stores and 33 New Image branches. Nedbank has embarked on a distribution strategy to convert all our branches to New Image outlets. We have also increased our ATM distribution to 630 and Intelligent Depositors to 90 in the province for your convenience. To make banking convenient we have eight Sundaytrading branches in key centres in the province. Nedbank’s client-centred approach has seen the bank intensify its efforts in delivering a distinctive client experience through innovation.

Our clients are engaged by skilled, enabled and productive staff who, through meaningful conversations, ensure we deliver to our clients’ needs and aspirations. As a bank for all, Nedbank realises that, if it wants to make banking more accessible to all in South Africa, it has to start working with the communities in which it operates.

“Since 2012 Nedbank has launched several firstto-market innovations, such as the award-winning Nedbank App Suite™, the home loans online digital channel and Market Edge™, as well as New Image branch outlets,” adds John. For more information on our offerings please contact Sean John at SeanJ@nedbank.co.za, +27 31 364 1933.

As such the bank’s strong relations with government, organised business and communities remain a key focus in growing its client base. Our presence in the KZN community goes a long way in allowing for greater financial inclusion while contributing to social upliftment and economic development.

Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

KEY SECTORS Overviews of the main economic sectors of KwaZulu-Natal Agriculture 46 Sugar 47 Foresty and paper

Mining 54 Oil and gas

Manufacturing 60 Automotive

Energy 70 Water

Tourism 72 Education and training

Banking and financial services

Development finance and SMME support

OVERVIEW

Agriculture A new cold-storage facility at Dube TradePort is good news for farmers.

SECTOR INSIGHTS • Operation Vula will make co-operatives stronger.

he Premier of KwaZulu-Natal, Willies Mchunu, has committed his government to Operation Vula which aims to create economic opportunities for social enterprises and co-operatives, led by African people. They are to benefit from state-led infrastructure programmes, as well as from the buying power of the state through the supply chain. Another initiative to support small-scale farmers resulted in the Masisizane Fund investing more than R100-million in the Harry Gwala and Alfred Nzo districts. Consulting company Agriculture House will assess the effectiveness of the programme. Despite a long drought which recently ended, the province's agricultural sector is very strong, taking advantage as it does of the province's fertile and varied soils. Eighteen percent of KwaZulu-Natal’s 6.5-million hectares of agricultural land is arable and the balance is suitable for the rearing of livestock. Vegetables grow well in most areas, and some maize is grown in the north-west. Nuts such as pecan and macadamia thrive. The province’s forests occur mostly in the southern and northern edges of the province. The sugar sector is dealt with separately in this publication. The opening of a R99-million cold-storage facility at the Dube TradePort in 2017 gives farmers and exporters additional flexibility,

ONLINE RESOURCES KwaZulu-Natal Agricultural Union: www.kwanalu.co.za KwaZulu-Natal Department of Agricultureand Rural Development: www.kzndard.gov.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za

KWAZULU-NATAL BUSINESS 2018/19

allowing them to store chilled and frozen perishable goods. TWK is a R6-billion operation that originated in forestry (as Transvaal Wattlegrowers Co-operative) but which is now a diverse agricultural company with seven operating divisions. The coastal areas lend themselves to sugar production and fruit growing, with subtropical fruits doing particularly well in the north. KwaZuluNatal produces 7% of South Africa’s citrus fruit. The Coastal Farmers Cooperative represents 1 400 farmers. Beef originates mainly in the Highveld and Midlands areas, with dairy production being undertaken in the Midlands and south. The province produces 18% of South Africa’s milk. KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle, which represents 55% of the provincial beef herd, and their goat herds account for 74% of the province’s stock. The Midlands is also home to some of the country’s finest racehorse stud farms. The area around Camperdown is one of the country’s most important areas for pig farming. Enterprise iLembe, the development arm of the iLembe District Municipality, is looking for investors to further develop an agri-processing hub near the King Shaka International Airport and Dube TradePort.

OVERVIEW

Sugar Sugar production is on a downward trend.

SECTOR INSIGHT • A sugar tax has been proposed.

ost of South Africa's 14 sugar mills are in KwaZulu-Natal, as are the headquarters of the biggest companies. Overall production volumes have been down in recent years because of the severe drought. Total saleable sugar in the South African market (for domestic use and export) was over twomillion tons in the 2013/14 and 2014/15 seasons. The figure for 2016/17 was 1.6-million tons. A proposed national sugar tax is being opposed by industry representatives. About 40% of local production is exported. The South African Cane Growers' Association represents about 24 000 growers who produce about 20-million tons of cane. Neither of the Big Two companies relies exclusively on South African sugar earnings: Tongaat Hulett has a big property portfolio and Illovo draws most of its profit from operations elsewhere in Africa. Illovo Sugar Limited has a presence in six African countries and is the continent's biggest sugar producer. The group's head office is in Umhlanga Rocks. In 2016 ABF, which used to be Associated British Foods, purchased Illovo. Tongaat Hulett’s headquarters are about 50km north of Umhlanga. The company's sugar divisions turned an operating profit of R1.3-billion

ONLINE RESOURCES South African Cane Growers’ Association: www.sacanegrowers.co.za South African Sugar Association: www.sasa.org.za South African Sugar Technologists Association: www.sasta.co.za Sugar Milling Research Institute: www.smri.org

for 2016/17, a notable improvement on the previous year. This was partly because of better import protection in the countries where Tongaat Hulett operates and because of higher export prices generated into the EU and other African countries. Tongaat Hullet Sugar has agreed to a R52-million sugar cane growing project which will see co-operatives and contract farmers plant cane on 3 000ha at Felixton, Maidstone and Darnall. Illovo and Tongaat Hulett are the major operators of sugar mills. Other millers are Gledhow, ULC, Umfolozi and Tsb (which has a further two mills in Mpumalanga). Illovo has four mills, three sugar-cane estates, four sugar factories, a refinery and three downstream operations that make products such as furfural, furfuryl alcohol, ethyl alcohol and lactulose. The four mills run by Tongaat Hulett are located on the North Coast while the central refinery is in Durban and the animal feed plant, Voermol, is near Tongaat. The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and can store more than half a million tons of sugar. It also has a molasses mixing plant.

KWAZULU-NATAL BUSINESS 2018/19

INTERVIEW

Agriculture House Chief Executive Officer Sifiso Myeni explains how this agribusiness development company is giving small-scale farmers access to markets. Please explain your business proposition.

CEO Sifiso Myeni

BIOGRAPHY Sifiso is the founder and Chief Executive Officer at Agriculture House. His role is to drive strategy, investment decisions of the company, stakeholder relations and new business. He is responsible for sector intelligence, due diligence, transaction structuring and quality assurance. He has vast experience in the agricultural sector, having worked for companies such as Old Mutual Masisizane Fund, as the KwaZulu-Natal Provincial Manager and as the Head of the Agribusiness Development Department.

Agriculture House is a 100% black-owned specialist agribusiness development company established in 2007. Its core business has four divisions: • Consulting services in agribusiness value chain development. This includes but is not limited to: assessment of agricultural projects; turnaround strategies for farms and agribusinesses including asset management; due diligence; business planning and implementation; feasibility studies; sector intelligence; project implementation and monitoring; social facilitation and policy analysis and formulation. • Skills transfer and mentorship. This includes AgriSETA-accredited training offered through strategic partners. • Investments in our own farms and agri-processing factories. • Access to markets for small-scale vegetable farmers. Agriculture House currently buys fresh produce from small-scale farmers to supply to various customers. This programme was established to increase AgriHouse’s fresh produce supply capacity and to provide access to market for small-scale farmers who cannot independently access formal markets. Most of the farmers are in Jozini and surrounding areas. How do you close the gap between commercial operations associated with large food value chains and small-scale farmers? Firstly, Agriculture House has identified access to market, inadequate skills and lack of production resources as major challenges facing small-scale farmers. Our contribution in resolving these challenges: • We are a market for small-scale farmers for fresh produce (vegetables) and eggs. We started in Jozini, Makhathini, eNdumo, Mhlabuyalingana and eThekwini (mainly egg farmers) and we are planning to expand to other areas in the province. • We are now exploring ways of improving the quality of fresh produce from these farmers. We have to put a production schedule in place for all farmers under our scheme, we have to train them, and we also have to provide production inputs. The Department of Agriculture and Rural Development is very supportive. How do you measure success? Our success is measured in three ways. Firstly, we have to be a profitable and sustainable business. Secondly, our customers must be satisfied with our products and services. Finally, when the farmers we seek to empower are running profitable small-scale farms.

KWAZULU-NATAL BUSINESS 2018/19

Helping agribusinesses grow

FOCUS

Providing advice and services.

s it enters its second decade, Agriculture House is expanding its footprint to help small-scale farmers get their products to market, invest in its own farms and agri-processing plants, offer training through partnerships and widen the scope of its consulting services. Our Vision To be a trusted centre for knowledge in agribusiness value chain development. Our Mission Provide reliable, practical solutions and quality products to meet the needs of our customers. Farms Essiena Farm in Stanger has been converted from sugarcane to a fully irrigated vegetable farm where spinach, tomatoes, cabbage, green, red and yellow peppers are grown and packaged. A total of 43 job opportunities have been created. Agriculture House is leasing the 10-hectare Baconsfield Farm in Harding. We are growing cabbages under full irrigation and supplying chain stores and markets agents such as DELTA, Wenpro and Port Natal, and private customers such as Scottys and KZN Hospitals through PCK. The aim is to run a profitable vegetable enterprise while creating decent employment for the local communities.

CONTACT DETAILS Suite A, 9 Brendon Lane, Westville, 3629, KwaZulu-Natal Tel: +27 31 825 4894 | CEO: +27 31 266 0063 Email: info@agrihouse.co.za Website: www.agrihouse.co.za

Technical team The technical team consist of 10 agricultural specialists in various fields of specialisation such as fresh produce, grain handling and trading, poultry, and the red meat value chains. Our expertise also extends through working with a network of strategic partners and associates. Individual team members have over 20 years of practical work experience in the agricultural industry. The team is led by the CEO and founder, Sifiso Myeni, who has extensive experience in many aspects of the sector. Other key members are Senior Investment and Risk Officer, Rhonnie Manana and Sandile Myeni who is the Manager in charge for getting fresh produce to various markets. Major clients Agriculture House has the following clients. In fresh produce supply: Durban International Convention Centre (ICC): Bargain Group (11 supermarkets): Pick n Pay: Boxer Stores. In consulting services: Old Mutual Masisizane Fund: eThekwini Municipality: Enterprise iLembe Economic Development Agency: Sheepcor SA (subsidiary of Nehawu Investment Holdings). KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Forestry and paper South African companies have a global presence.

he forestry and paper sector is one of the most important within the KwaZulu-Natal economy and the province is a national leader. The forest-product export sector in South Africa is made up of paper (45.2%), solid wood (23.3%) and pulp (28.9%). The KwaZulu-Natal Provincial Government's strategy of creating Industrial Economic Hubs (IEHs) includes the development and expansion of wood processing in the Harry Gwala District Municipality. This is in the wooded south-western part of the province and includes the towns of Kokstad, Harding, Ixopo and Underberg. The province’s two biggest companies in the sector, Sappi and Mondi, are both diversified global companies. Mondi is an integrated packaging and paper value company with more than 100 operations in more than 30 countries. Recent upgrades to Mondi’s woodyard at Richards Bay (shown above) have made a big impact on efficiencies. The addition of an unbleached kraftliner product has expanded the company’s range. Sappi makes paper at two mills in South Africa: the mill at Tugela makes 185 000 tons of speciality paper per annum. A big focus for the company is dissolving wood pulp, made at one site in America and two in South Africa. Dissolving wood pulp is sold as a raw material to converters around the world who produce from it a range of products such as textiles, cellophane wrap and pharmaceuticals. The giant Sappi Saiccor mill 50km south of Durban is the world's biggest manufacturer of dissolving wood pulp. The mill's capacity is 800 000 tons, which makes it the biggest of its kind in the world. Sappi KWAZULU-NATAL BUSINESS 2018/19

SECTOR HIGHLIGHTS • Mondi manages more than 250 00 hectares of plantation in South Africa. • The Sappi Saiccor mill is the world’s biggest site for the manufacture of dissolving wood pulp. is actively looking into the new fields of bio-materials and bio-energy. Nampak produces crêpe paper at Verulam and Rafalo produces tissue paper. SA Paper Mills is another paper producer. Mpact's upgrade of its Felixton mill has increased capacity and improved efficiency. The project cost R765-million and takes overall production up to 215 000 tons (from 60 000) and a lightweight containerboard option has been included in the product lines. This is in response to market demand for lighter packaging. The first phase of the upgrade began in

OVERVIEW 2015 with the development of a recycled fibre (RCF) plant and improvements to the paper machine. Mpact has plastics and paper operations, with the paper section divided into three divisions: paper manufacturing, corrugated and converted paper products and recycling. The Merensky Group operates one softwood sawmill and a panelprocessing plant in Kokstad that is geared to manufacture according to customers’ needs in any sector. Export is done through the Port of Durban. NCT Forestry Co-op Limited is a key timber-marketing entity with more than 2 000 members and three wood-chipping mills. R&B Timber Group has three pole treatment plants and is headquartered in Harding. Flaxton Timbers operates out of Ixopo and Natal Forest Products is in Richmond.

Timber Timber plantations are found in five parts of the province: northern KwaZulu-Natal, Midlands, southern KwaZulu-Natal, Zululand and Maputaland. Close to half-a-million hectares – 38.5% of the land in South Africa devoted to forestry – is allocated to timber plantations. Of this area, 70% is devoted to hardwoods and the balance to pine, the only softwood grown in large quantities in South Africa. The percentage of privately owned forest land is 93.4%. Merensky has plantations in the Dargle forest while Sappi and Mondi have holdings across the province, and in other parts of South Africa. Management of the 251 000 hectares of the plantation forest that Mondi has under management is done in line with sustainable forest management principles and the company is engaged in a partnership with the WWF to get different types of water users to work together in improving how water is used. Mondi has reduced its own consumption of fresh water by 12% in comparison to its use in 2015.

The company’s local enterprise initiative, Mondi Zimele, promotes small forest enterprises among other programmes in support of health and education. The Mkondo Development Project is tackling poverty. Sappi is working with regional and local government in the northern Eastern Cape and KwaZulu-Natal to plant more plantations. The company’s Clan Nursery north of Pietermaritzburg has the capacity to look after 17-million cuttings. The South African forestry industry is valued at R40-billion per year. The National Department of Agriculture, Forestry and Fisheries reports that South Africa has a shortage of sawn timber and anticipates further shortages in the future.

ONLINE RESOURCES Forestry South Africa: www.forestry.co.za KwaZulu-Natal Department of Agriculture and Rural Development: www.kzndard.gov.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za Paper Manufacturers of South Africa: www.thepaperstory.co.za South African Institute of Forestry: www.saif.org.za Technical Association of the Pulp and Paper Industry of South Africa: www.tappsa.co.za

KWAZULU-NATAL BUSINESS 2018/19

FOCUS

Sappi Sappi’s strategic growth from dissolving wood pulp.

nnovation is a cornerstone of the strategy and 2020Vision that Sappi has implemented and as a result experienced growth over the last few years. A major contributor to this growth has been the dissolving wood pulp (DWP) product with its differentiated market offering stemming from the Southern KZN region. What is dissolving wood pulp?

Dissolving wood pulp is a purified cellulose pulp suitable for subsequent chemical conversion into a range of products and can be spun into textile fibres, cast into a film or regenerated into a sponge. Dissolving wood pulp (DWP) is locally manufactured at Sappi Saiccor Mill, situated in Umkomaas. With a capacity of 800 000 tons per annum of sulphite DWP, it is the world’s single largest manufacturing site for DWP. It also has a long history in DWP production, going back more than 60 years to 1955. Since Sappi acquired the mill in 1989, Saiccor Mill has played a key role in establishing Sappi as the global market leader in DWP. Sappi’s competitive cost position provides it with the platform to build the business further with its key strategic partners, while providing customers with unmatched quality, consistency and scale. This is achieved through sustainable manufacturing and sourcing of certified raw materials (Hardwood woodfibre Eucalyptus and Acacia) from responsibly managed plantations. A truly sustainable raw material, DWP is noted for its versatility to create personalised solutions for customers across multiple sectors. Dissolving wood pulp applications

Dissolving wood pulp is used to produce an array of intermediary products which in turn are used to produce a dynamic variety of final products.

KWAZULU-NATAL BUSINESS 2018/19

Fabrics

Cellulosic based fabrics are breathable and offer a soft, natural feel with high levels of moisture absorbency. This is in contrast to most synthetic fibre based fabrics derived from nonrenewable fossil fuels. VSF (rayon)

By far the most prominent of the wood-based cellulosic fabrics are those produced from viscose staple fibre (VSF), also known as rayon. VSF accounts for approximately 70% of global DWP production and is most commonly used in fashion, home and decorating textiles. Lyocell

Another key fibre produced from Sappi’s DWP is lyocell, which represents the next generation of sustainable wood-based cellulose fibres. It is a high-strength and absorbent material used for a variety of textile and non-woven applications, either on its own or as a blend with other compatible fibres.

FOCUS

Food, pharmaceuticals and other applications include: Microcrystalline cellulose

A useful ingredient used by the pharmaceutical industry because of its excellent binding properties, microcrystalline cellulose (MCC) can be found in many prescription and over-thecounter tablets. Ethers

Ethers derived from dissolving wood pulp are used widely in the production of food, pharmaceuticals and cosmetics. They also have more heavy industry-related applications, such as drilling fluids, mining flotation aids and detergents. Commonly produced ethers include CMC, MC and HEC. Cellophane

Cellophane is used the world over for packaging in the food industry. It offers excellent breathability and non-static properties and has become essential for preserving freshness as well as for its visual appeal for certain food groups. Cellophane is also used in the production of alkaline batteries and lithographic masking tape. Acetate

Acetate from dissolving wood pulp is used in the manufacture of fabrics and yarns as well as in plastic applications such as spectacle frames, photographic film and clothing buttons. It is mostly used for the manufacture of cigarette filters. Through continuous investment in this region and product, Sappi is set to deliver further results and remain relevant to customers by offering value-adding products. They are ready with a truly renewable natural fibre to face the challenges of global demands and meet customer needs.

KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Mining Mineral sands are mined in the north.

ost of South Africa’s export coal passes through the Richards Bay Coal Terminal. The province’s mineral sands mines are near Richards Bay with several coalfields further inland. Having opened in 2016, the KZN Sands mineral sands operation comprises a central processing complex in Empangeni and the Fairbreeze Mine. Expenditure over several years is expected to rise to R5-billion as it expands. Tronox, which is listed on the New York Stock Exchange, is the major shareholder in KZN Sands. The development of a new titanium dioxide pigment plant was announced in 2017 by Nyanza Light Metals and its technology partner, Avertana of New Zealand. The use of stockpiled waste slag (from mines in Mpumalanga) sets this R4.5-billion project apart. Other products will include gypsum, aluminium sulphate and magnesium sulphate. Construction is set to begin in 2018. A new name appeared in the mining environment in 2015, but South32 is simply an offshoot of BHP Billiton, so the Hillside aluminium smelter at Richards Bay run by South Africa Aluminium is now a 100% South32 asset. Most of the product (high-quality primary aluminium ingot) is exported but some liquid metal form is sent to Isizinda Aluminium which supplies Hulamin, a company that has had a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major aluminium rolling operator in the region and it makes rolled products and extrusions. Other processing facilities in the province include the steel plant owned by Arcelor Mittal in Newcastle and Safa Steel's metal-coating factory in Cato Manor. Tata Steel KZN's high-carbon ferrochrome plant at Richards Bay went into business rescue and then liquidation before being bought by Luxembourg-based Traxys Africa in the middle of 2016, after a court ruled in its favour. Traxys has chrome mines in Mpumalanga and Limpopo provinces. Tata Steel did not have its own mines. RBM mines the minerals sands of the northern KwaZulu-Natal coast and operates out of Richards Bay. The main products of the RBM mine are zircon, rutile, titania slag, titanium dioxide feedstock and high-purity iron.

ONLINE RESOURCES Chamber of Mines South Africa: www.chamberofmines.org.za Council for Geoscience: www.geoscience.org.za Geological Sciences, University of KZN: www.geology.ukzn.ac.za National Department of Mineral Resources: www.dmr.gov.za

KWAZULU-NATAL BUSINESS 2018/19

SECTOR INSIGHT • The KZN Sands Fairbreeze Mine will inject billions into the local economy. Some of the coalfields of the province have been revived. Petmin's Somkhele Anthracite Mine, north of Richards Bay, has one of the biggest reserves of open-pit anthracite in South Africa, with measured and indicated reserves of more than 51-million tons across its four areas. Buffalo Coal Corporation (which used to be called Forbes Coal) has Canadian roots and has two assets near Dundee: Magdalena Colliery and Aviemore Colliery. The company has two processing plants.

OVERVIEW

Oil and gas Richards Bay is set to host a liquid natural gas plant.

SECTOR INSIGHT Transnet Pipelines’ new multi-purpose pipeline is the country’s energy lifeblood. • P e t r o l e u m Agenc y South Africa is awarding exploration rights in the province.

f a private partner can be found, a liquid natural gas (LNG) plant will soon be producing 2 000MW on a site in Richards Bay. This forms part of national government's allocation of 3 126MW to natural gas in its medium-term energy policy to 2030. The National Department of Energy (DoE) decided in 2016 that one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme would be allocated to Richards Bay. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub. The fact that neighbouring Mozambique has significant offshore deposits is a factor in this ambition. To produce its allocation of 2 000MW, the plant would have to use a million tons a year of liquid natural gas. A new unit within the National Department of Trade and Industry (dti) is focussed on importing LNG, particularly from Mozambique and Botswana. Local demand for LNG is expected to increase to more than 10-million tons per annum. The Richards Bay Industrial Development Zone signed an agreement in 2015 with Byromate to produce 60MW from a biomass plant and manufacturing in the solar sector is another option within the broader energy field. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas exploration rights in KwaZulu-Natal to NT Energy Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. The Petroleum Agency SA is an agency of the National Department of Energy. Sinopec of China has bought a 75% share in Chevron South Africa for R12.6-billion and the deal has been approved by regulators. Assets

include a lubricants plant in Durban, an oil refinery in Cape Town and 820 petrol stations across South Africa and Botswana. Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP) which started delivering fluids in 2012. The NMPP terminals allow for greater flexibility in supply. Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines apparently reduces the number of fuel tankers on South African roads by about 60%. The liquid fuels and gas networks of Transnet Pipelines traverses KwaZulu-Natal from west to east and north to south. The petroleum network has intake stations at both Durban refineries, while the gas pipeline runs from Secunda to Durban, with diversions to the manufacturing hubs of Newcastle and Richards Bay, and along the coast between Durban and Empangeni. Transnet KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Pipelines employs 658 staff, with about 200 located at the head office in Anton Lembede Street in downtown Durban.

Assets KwaZulu-Natal is home to two major oil refineries and is the first link in the pipeline chain that links Gauteng province, the industrial heartland of South Africa, with vital fuels. The Port of Durban handles 80% of South Africa's fuel imports. KwaZulu-Natal is thus a key player in the country’s oil and gas industry. KwaZulu-Natal’s two oil refineries are important regional and national assets as their joint production accounts for more than 300 000 of the 700 000 barrels of refined crude oil that South Africa produces. South Africa’s biggest refinery is Sapref. Owned jointly by Shell SA Refining (25%), Thebe Investments (25%) and BP Southern Africa (50%), it has a capacity to produce 180 000 barrels per day. The refinery also makes

ONLINE RESOURCES Independent Power Producers Programme: www.ipp-projects.co.za National Department of Trade and Industry: www.thedti.gov.za National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency SA: www.petroleumagencysa.com South African National Energy Association: www.sanea.org.za South African Petroleum Industry Association: www.sapia.co.za Transnet Pipelines: www.transnetpipelines.net

KWAZULU-NATAL BUSINESS 2018/19

propylene feedstock, solvents, sulphur, asphalt, industrialprocessing oils and liquefied petroleum gas. Sapref has started a clean-fuels project, aiming to reduce sulphur and benzene levels, among other things, in fuel products. The modifications to the refinery will bring it into line with the tougher legislation regarding fuel production that is in the pipeline. The Enref refinery owned by Engen can produce 135 000 barrels per day. This sophisticated refinery can convert light and heavy crude oil into high-value products that include jet and diesel fuel, solvents, bitumen, sulphur, bunker oil and aviation gasoline. Safor is a base-oil production facility (jointly owned by Engen, Caltex and Total but operated by Engen) that produces 45% of Southern Africa’s base oils. Engen also owns the adjoining Lube Oil Blend Plant, which produces more than 72-million litres of finished lubricants annually. KwaZulu-Natal has the second-highest consumption of diesel fuel of South Africa’s provinces (17.8%) and the thirdhighest consumption of petrol (15.4%). Royal Vopak, which runs a large terminal at the Port of Durban, has expanded capacity to 174 000m³ and is planning to grow its ability to store fuel still further. It is also planning a new storage facility at Heidelberg that will cater for petroleum and chemicals. Towns along the N3 highway are increasingly receiving investments in the logistics sector.

Transnet Pipelines owns, operates and maintains a 3 800km network of high pressure underground petroleum and gas pipelines. Established in 1965, the company plays a strategic role in the supply of petroleum products to South Africa's economic hub in Gauteng. Ta ensure security of supply, a new 24 inch Multi-Product Pipeline (MPP) was constructed and commissioned in 2012. Lennie Maadley, Chief Executive of Transnet Pipelines, discusses the latest milestone in the MPP project.

Is the Multi-Product Pipeline working to expectations? Yes, since it was brought into operation in January 2012 it has transported over 18 billion litres of diesel. We have now successfully brought it into multi-product operation. In addition to transporting two grades of diesel {D50 and D500) we are now transporting 93 and 95 unleaded petrol as well as jet fuel. Can you put a figure on the number of road trips (or number of tankers) that have been reduced because of the introduction of the Multi-Product Pipeline? Not directly as all modes of transport are required to service the market. pipelines are ideal for large volumes and long distance, whilst road and rail service other areas. We can however, say that if we did not have the Multi-Product Pipeline you would need an additional 1 ODO road tankers per day between Durban and Gauteng. What are current volumes of throughput in the various categories? The capacity of the line is 1 080 cubic metres per hour and the average

throughput is approximately 115 million litres per week. The volume split per product depends on weekly market demand and varies from week to week. Is TPL on target with regard to these volumes? The volumes are slightly behind target. but this is reflective of the lower demand in the market due to the slowdown of the economy. From a capacity and operational point of view TPL is able to meet the demand required by its customers. And the balance sheet? Pipelines is currently forecast to exceed financial targets in the 2017/18 year: • Revenue of R4.2bn • EBITDA margin of 74% • Return on assets of 6.7% • Asset base of R36bn excluding capital work in progress • Cash generated from operations of R3.lbn

Please tell us about your journey to the CEO's desk? What was your first job at TPL? Was there a moment/event where you thought, "Yes, pipelines is where I want to be"? My journey started in

Transnet Pipelines in 2002 as an Executive Business Manager in charge of operations and has evolved through various roles since then. From the onset I knew this is where I want to be and approached each day with enthusiasm and determination. Pipelines is a fascinating, complex and challenging environment. In 2002, Transnet Pipelines, then known as Petronet, transmitted 334 million m3 of gas and 13.8 billion litres of fuel and our revenue was R719 million. In comparison to the previous year, we have transported 17 billion litres of fuel and our revenue was R4 285 million. I have aspirations of growing the company even further, with specific focus on diversification into the liquefied natural gas (LNG) market and expanding our footprint into Africa.

Do you feel that your stint in Operations gives you an especially good perspective on the complexities of the business? Yes, it provides

good insight into the operational and technical aspects of the business. It also provided great understanding into the various role- players in the market segment and the number of challenges faced by the industry. Furthermore, it empowers me to challenge views and make informed decisions.

How much success is TPL having in terms of applying the relatively new policy of diversifying revenue streams? Please expand on which are working best, and give examples (eg, training in Africa). Our initiatives to diversify our revenue

streams are at an infancy. However, we are confident that we will achieve our aspirations in the medium term. In addition to becoming a key player in the LNG market, Pipelines is also committed to operate and maintain pipelines, operate and maintain terminals in other African countries and provide pipeline-specific training to the oil and gas industry.

How do you ensure security of supply? Our biggest challenge is to stay ahead of market demand and ensure efficient operations. We meet regularly with our customers to understand their market and needs and execute our plan accordingly, thus ensuring that their market demands are met and facilitating security of supply. We have pertinent KP ls that we track to ensure our performance is in

www.transnetpipelines.net

line with what the market requires. In addition to just the pipeline as a mode of transport, we also use rail, our Transnet Value CC initiative, whereby areas not serviced by pipelines are still serviced by rail; one such example is the supply of jet fuel to ORTIA, whereby both rail and pipeline is used.

How do you protect pipes from corrosion? In addition to the pipeline being coated, we have an extensive cathodic protection programme in place that monitors and deals with stray currents thus preventing corrosion. We also do periodic "intelligent pig" investigations to check the integrity of the pipeline. What risk is involved for the environment through which pipelines pass? Pipelines by their nature are a safe, environmentally friendly mode of transport. The biggest threat is unauthorised third party activities, encroachments and attempted pilferage. In saying this, incidents do happen; however, our track record to date is exemplary and we have an emergency response plan to react to any incident together with all stakeholders.

Are you getting the rates you want from the National Energy Regulator of South Africa (NERSA)? Yes, the Regulator has an approved tariff methodology which we comply with that allows us a fair return on assets managed.

Please outline TPL's skills development programmes? Most of

our programmes are focussed on pipeline specific requirements, both technical and operational. But we also have specific courses such as the "Women in Pipelines" course which we are now going to expand to all employees in Pipelines to equip them with skills that will allow them to grow personally and in their careers, with specific focus on diversity, finance management, self esteem and leadership skills.

OVERVIEW

Manufacturing A Durban shipyard is making tugs for Transnet.

SECTOR INSIGHT Packaging company Mpact has increased capacity at Felixton by 35%. • Two special economic zones are designed to attract manufacturers.

waZulu-Natal is a key centre of manufacturing in the South African economy. Two large oil refineries and a sophisticated sugar milling and refining industry underpin provincial chemical manufacturing. The chemicals and petrochemicals subsector makes up 17% of the manufacturing output of KwaZuluNatal, with industrial chemicals accounting for nearly a third. Steel and aluminium are other heavy manufacturing products. The automotive industry is covered in a separate article. The manufacturing sector contributes 17.7% to the provincial Gross Domestic Product (GDP). The strongest export sectors are base-metals (32% including aluminium), mineral products such as ores, vehicles and chemical products. The nine-tug contract put out by Transnet National Ports Authority (TNPA) is worth R1.4-billion and was won by Durban-based Southern African Shipyards in Durban. Most of the tugs have been built and sent to ports around the country. Paper and plastics packaging company Mpact recently invested R765-million on increasing capacity at its Felixton paper mill by 35%. The company has 21 manufacturing sites across Southern Africa. Special Economic Zones (SEZs) at Richards Bay and Dube TradePort are attracting manufacturers with zoned and serviced land and tax rebates. The provincial government is keen to link the agriculture sector with manufacturers and intends to use its Agri-Village Programme to pursue this goal. To take advantage of the existing strengths of cities and districts in the province, a network of Industrial Economic Hubs (IEHs) is being developed in KwaZulu-Natal. Leading the process is the Department of Economic Development, Tourism & Environmental Affairs (DEDTEA). KWAZULU-NATAL BUSINESS 2018/19

A Halaal Manufacturing Park is being considered by DEDTEA, finance institution Ithala, the South African National Halaal Authority and business leaders. A location near a good road or national highway and within easy reach of the Port of Durban would be ideal. It is expected that investors will find this an attractive proposition. Hulamin is a leader in aluminium finished-products. The company makes rolled products at Edendale, Pietermaritzburg and at Camps Drift while its Pietermaritzburg facility for making extrusions is one of the three in the country. Rolled products make up 91% of the company's output. Extruded products make up the remainder. Exports to the automotive industry in the USA are on the increase. The group headquarters of Africa’s biggest pharmaceutical manufacturer, Aspen, are in La Lucia Ridge. German chemicals group Lanxess has built a carbon dioxide concentration unit at its existing plant in Newcastle. The company makes tanning raw

OVERVIEW

USED JUICE AND MILK CARTONS NOW RECYCLABLE IN SA Juice and milk cartons have long been one of the contributors to waste in South Africa’s landfill sites. In a major development for the South African paper and packaging recycling market, Mpact Recycling recently announced that liquid cartons are now recyclable. John Hunt, managing director of Mpact Recycling, says it was previously not possible to recycle juice and milk cartons as they are not made of typical paperboard. This announcement follows the investment of R46-million in a Liquid Packaging recycling plant at Mpact’s Springs Paper Mill facility; the recycling plant has the capacity to recycle 25 000 tonnes of used liquid cartons per annum which will be fed directly into the paper division for use in new paper products. Mpact Recycling’s role, through its extensive collection network of paper, containerboard, PET and now liquid packaging, is to supply its mills with sufficient volume to match its capacity. This is why Mpact has embarked on a cam-

paign to raise consumer awareness that longlife milk and juice cartons are now recyclable. Consumers must ensure the cartons are empty and flattened. Where there is no kerbside collection, they can deliver their cartons to any of Mpact’s buy-back centres countrywide or to one of its seven Mpact Recycling operations for payment. “Liquid carton packaging provides a category of waste that can be recycled and will add considerably to land preservation in South Africa as consumers can redirect cartons away from limited landfill space. “Whether you finish a carton of milk at breakfast or enjoy a boxed fruit juice for lunch, place your flattened, used container into your nearest recycling bin, whether at home, school or work. This way South Africans will be not only be doing their bit to keep the environment clean, but will also be helping to continue creating sustainable job opportunities throughout the recycling value chain,” concludes Hunt.

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SPECIAL FEATURE materials at Merebank in Durban and rubber chemicals in Isithebe north of Durban. Newcastle is a chemical manufacturing hub. The big steel works of Arcelor Mittal produce by-products such as ammonium sulphate, and large companies such as Karbochem, Bayer, African Amines and SA Calcium Carbide also operate in the area. AECI has a big presence in the province under the Chemical Services banner. Chemical Initiatives runs an elemental-nutrient sulphur plant in Umbogintwini. SA Paper Chemicals operates a big plant at Isithebe. Protea Chemicals has a large manufacturing plant at Mobeni. Sappi Saiccor's Umkomaas plant is the biggest producer of specialised cellulose in the world with production edging upwards every year towards full capacity of 800 000 tons per annum. Illovo Sugar manufactures downstream products such furfural (used in lubrication oil), furfuryl alcohol, diacetyl (a flavouring in margarine) and ethyl alcohol. Kynoch makes fertilizer at plants in Durban and Richards Bay. Foskor's acid division manufactures sulphuric acid, phosphoric acid and granular fertilizer in Richards Bay. ChemSpec makes paint at Canelands. KwaZulu-Natal produces nearly a third of South Africa’s plastic requirements. Nampak has several packaging facilities in the province and MPact’s Pinetown facility specialises in FMCG containers. Mcbean Beier Plastics and PCI also operate out of Pinetown. Packaging and paper group Mondi is a major international company with its roots in KwaZulu-Natal. Mondi’s Richards Bay mill and its paper plant at Merebank are among the province’s most significant manufacturing sites.

Textiles Shanghai, with which KwaZulu-Natal has signed a new memorandum of understanding, has agreed to run an exchange programme focussing on clothing and textiles. Thirty local students will study in Shanghai in the first phase of the project. Canvas and Tent Manufacturing (Pty) Ltd has more than 400 employees in Ladysmith. There are 219 clothing companies in the province

ONLINE RESOURCES Aluminium Federation of South Africa: www.afsa.org.za Chemical and Allied Industries’ Association: www.caia.co.za Manufacturing Circle: www. manufacturingcircle.co.za National Association of Pharmaceutical Manufacturers: www.napm.org.za National Department of Trade and Industry: www.thedti.gov.za Plastics SA: www.plasticsinfo.co.za

KWAZULU-NATAL BUSINESS 2018/19

(Coface). Ninian & Lester has about 1 500 employees. The footwear sector is showing good recovery after taking a battering from Chinese imports. The purchase of 39% of Eddels Shoes by management and staff has paid off, with 385 staff employed in making 2 700 leather shoes every day. Two international safety footwear firms operate out of Pinetown: Bata Industrial and Beier. The latter company joined forces with three other South African safety footwear manufacturers to form the BBF Safety Group in order to be able to compete with cheap imports. Carpet manufacturer Belgotex Floorcoverings and Ulster Carpets have facilities in Pietermaritzburg and Durban respectively. Home appliance manufacturer Defy, which is part of the Turkish group Arçelik, employs about 2 600 people. Böhler Uddeholm in Pinetown produces tooling materials and welding consumables.

SPECIAL FEATURE

KWAZULU-NATAL BUSINESS 2016/17

OVERVIEW

Automotive An automotive supplier park is under construction.

oyota South Africa and Bell Equipment are manufacturing giants. Between the Toyota plant at Prospecton south of Durban and the Richards Bay facility of heavy-equipment manufacturer Bell Equipment, upwards of 11 000 people are employed. Both companies are market leaders. KwaZulu-Natal also has a substantial and varied automotive components sector which includes large manufacturers such as Apollo Tyres and GUD Filters. Thirty-nine companies are currently members of the Durban Automotive Cluster which is funded by the municipality. Together, these firms have about 17 000 employees. Bell is in the process of transferring production of its current truck range to its factory in Germany, which will double in size to accommodate the growing demand for trucks in Europe and America. Bell’s new European headquarters opened in Alsfeld in August 2017. The shift will not affect employment levels at the Richards Bay site because Bell will start assembling Kamaz heavy-duty trucks (pictured above) in 2019 for the African market. Kamaz, a Russian brand that has won 14 Dakar rallies, is known for its reliability in tough conditions. Bell’s intention is to increase the percentage of local components over time. KWAZULU-NATAL BUSINESS 2018/19

SECTOR INSIGHT • Bell Equipment will make Kamaz trucks at Richards Bay. Bell is best known for its heavy equipment which is primarily used in the mining and construction sectors. The listed company reported a 13% rise in revenue in December 2017, to R6.7-billion. Toyota recently invested a further R6.1-billion into its already very large plant at Prospecton. The company regularly sells about a quarter of the vehicles sold in South Africa, and accounts for the same proportion of export

OVERVIEW volumes. The Corolla car, the Hilux bakkie and the Fortuner SUV are manufactured at the plant.

Components To promote the city of Durban as a destination for automotive investment, the first National Association of Automotive Components and Allied Manufactures (NAACAM) Show was held in Durban in 2017. Future events will rotate between other centres in South Africa. In line with the policy of developing Industrial Economic Hubs, the Durban Automotive Supplier Park is being built at Illovo, south of Durban and near to the Toyota plant. An amount of R11.5-billion will be invested in three phases, with the first allocation amounting to R4.3-billion. The Dube TradePort Corporation will manage the project, which covers 1 013ha. Other partners are the eThekwini Municipality, Toyota and the provincial government. The aim is to attract car assembly and component manufacturing companies. The province already has a substantial automotive-supply sector. Trade and Investment KwaZulu-Natal (TIKZN) estimates that the province's component automotive manufacturers enjoy a combined turnover approaching R10-billion. Powerstar, a Chinese state-owned brand, assembles trucks in Pietermaritzburg on a site formerly used by Super Group. The companies that make Powerstar in Asia are the China North Vehicle Corporation (Norinco Motors) and BEIBEN, who produce about 60 000 heavy-duty commercial vehicles every year at their plant in Inner Mongolia. One car salesman who is ahead of the game in Newcastle is Xolani Khumalo of Supertech Newcastle. With a growing Chinese community in the area, the ability of the BMW salesman to interact in the language of his client base is a major advantage. Keeping MAN and Toyota supplied is the R300-million operation, Duys Engineering Group. This diverse group of companies includes in its business plan the supply of truck bodies and truck components

ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za Automotive Industry Export Council: www.aiec.co.za Durban Automotive Cluster: www.dbnautocluster.org.za National Association of Automobile Manufacturers of South Africa (NAAMSA): www.naamsa.co.za National Association of Automotive Component and Allied Manufacturers (NAACAM): www.naacam.co.za

KWAZULU-NATAL BUSINESS 2018/19

and has production plants at New Germany (Pinetown) and Richards Bay, from where it services the mining industry. Toyota Boshoku manufactures seats and does the interior trim on contract for Toyota. International company GUD Filters has a big presence in the province. Headquartered in Prospecton, where more than 1 500 people work at one of its factories, the company has another plant in Pietermaritzburg and a distribution centre in Pinetown that concentrates on exports. Indian-owned Apollo Tyres SA makes Dunlop products at two large factories in the province: truck tyres are made in Durban at an 80 000m² plant where 840 workers are employed and a passenger car tyre plant in Ladysmith (77 000m², 1 160 employees). The Durban factory devotes 40% of production to supplying the truck and earthmoving market. Both plants make about 25 000 tons of tyres with half of the passenger tyres being exported. The Behr Group is another international company with a presence in the province. The airconditioning and cooling systems company has a factory and its headquarters in Durban. Ramsay Engineering supplies cross-car beams for BMW and Ford. Funding was received from the Industrial Development Corporation (IDC) to buy new tool-making technology to make this possible. The company, which has its headquarters in Pietermaritzburg, makes 150 000 units per year for the two original equipment manufacturers.

PROFILE

Toyota Prestigious enhancements to Land Cruiser Prado.

ith an off-road heritage spanning more than 65 years, Land Cruiser remains unique in its segment for its ability to combine outstanding quality, durability and reliability with unrivalled off-road performance and ever-greater levels of luxury, comfort and ownership prestige. Land Cruiser is the most widely available model in the global Toyota product range. Its unmatched off-road abilities have earned it a rock-solid reputation as one of the world’s toughest and most reliable 4x4s. In South Africa, the Land Cruiser range has a cult-like following with off-roading enthusiasts’ admiration deeply rooted in its legendary robustness. The new Land Cruiser Prado enhances this reputation with more modern and robust exterior styling, a more sophisticated, comfortable and higher-quality interior, and improvements to its user-friendliness, both on and off-road.

The body-on-frame build also efficiently isolates the cabin from suspension impacts, making even the most challenging off-road conditions more comfortable to negotiate for everyone on board. The all-terrain support systems help even unskilled drivers make the most of Land Cruiser’s off-road performance. They also make the Prado one of the most technically advanced, safe, pleasurable and easy-to-use 4x4 vehicles in the world. The Prado’s powerful road presence and high levels of on-board technology mark it down as a premium 4×4 with a perfect blend of go-anywhere capability, comfort and refinement. Where you want to go, Land Cruiser Prado will take you there – and bring you back.

Unquestionable off-road prowess

Grand Grade

Land Cruiser’s peerless off-road capability is rooted in its highly durable and deformation-resistant body-on-frame construction, which is now unique in the large SUV segment. The vehicle’s combination of strength and durability provides a high level of damage protection and it is designed for easy maintenance and repairs. Significantly reduced levels of body twisting help the driver optimally position and control the vehicle.

The Prado range has traditionally consisted of two grades, the mid-level TX and high-grade VX. For the first time, a new third grade, called VX-L has been added to the model line-up. The VX-L model combines all the features of the VX while adding a power-operated tilt-and-slide moonroof and comprehensive active safety assistance package to the mix.

KWAZULU-NATAL BUSINESS 2018/19

More dynamic, modern and robust styling The exterior design of successive Land Cruiser generations has combined the stylish aesthetics of a vehicle entirely at home in any environment with the robust image of durability and power expected of a genuine all-wheeldrive machine. The new Land Cruiser builds on this proven, trusted formula with a new design that is visually more agile and dynamic, yet which maintains three core strengths essential to the vehicle’s go-anywhere credentials: Total Practicality, with headlamps and cooling openings positioned to maximise protection and wading depth; Total Durability, with the powertrain and all functional parts well protected; and Total Capability, with a tight turning circle and generous ground clearance, essential for the most demanding off-road driving conditions. New-look frontal elements such as the bonnet, grille, headlamps, bumper and wings draw on structural elements from the model’s design heritage. The bonnet has been shaped to improve downward visibility at the centre and it is sandwiched by the sides of the bumper to help protect the engine bay. Higher-quality interior The top of the new centre console tower has been set lower for a sleeker appearance and better front-on visibility when driving off-road. It is fitted with a new eight-inch, full-colour multimedia screen, a flush-fitting air-conditioning control panel and the drivetrain-related instrument cluster. The controls for driving and comfort functions are in separate panels for ease of use, positioned behind a new, leather-trimmed gear lever. They include switches to operate new integrated heating and ventilation for the front seats. The luxury and sophistication of the interior are amplified by new white illumination for the instrument panel, centre console and door-mounted switches. Specification additions TX models inherit the much favoured “coolbox” located in the centre console binnacle. All models are now equipped with seat ventilation for driver and passenger in addition to the seat-heating function (for first- and second-row occupants). The top-tier VX and VX-L models are outfitted with Satellite Navigation and an enhanced surround-view Multi Terrain Monitor camera system which also includes Panoramic and overhead view modes. The 14-speaker Premium touchscreen infotainment system incorporates a tablet-like design and easy to operate switchgear. The standard convenience specification list is befitting the stature of the Land Cruiser Prado: automatic dual-zone climate control, six-speaker touch audio system, electrically adjustable driver’s seat, illuminated entry, cruise control, park distance control, keyless entry, three power outlets, Bluetooth connectivity, USB, third-row seating and reverse camera.

KWAZULU-NATAL BUSINESS 2018/19

Off-road technologies All Prado models feature Toyota’s Active Traction Control system, which actively regulates wheel-slip, by directing torque to the wheel with the most traction. The system can apply braking pressure to wheels individually to maximise traction. A low-range transmission with user-selectable rear and centre diff-locks and Hill Assist Control, forms part of the standard ensemble. The Multi-Terrain Select system (VX and VX-L only), operated by a centrally mounted rotary knob, allows the driver to select the correct mode depending on the “road” ahead. The system has five pre-configured modes to tailor the vehicle’s traction control, transmission characteristics, power delivery and suspension settings to the terrain at hand. Expanded range of safety features VX-L grade versions of the new 2017 Prado are equipped with Toyota Safety Sense active technologies to help prevent accidents from happening or mitigating the consequences if an impact does occur. The package includes a Pre-Collision System with pedestrian detection function, Adaptive Cruise Control, Lane Departure Alert and Automatic High Beam. The Adaptive Cruise Control system uses radar sensors in the front grille to monitor the distance to the vehicle in front and applies corrective action via both throttle and brake inputs to maintain a specified gap. Further driver support is provided in the form of a Blind Spot Monitor with Rear Cross Traffic Alert (both VX and VX-L) and an upgraded tyre pressure warning system – with digital read-out in the multi-information display. These active safety systems complement the standard seven airbags and comprehensive brake and stability control systems. Warranty and Service All Land Cruiser Prado models include a 5-year/90 000-kilometre service plan and 3-year/100 000-kilometre warranty. www.toyota.co.za

KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Energy Biomass is producing energy in northern KwaZulu-Natal.

17MW biomass project south-east of Pongola in the northern part of KwaZulu-Natal represents the province’s only approved project in terms of the national Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) but provincial planners are keen to use the province’s ample supply of sun and wind to exploit the potential of this exciting sector. Municipal buildings in the eThekwini metro are being fitted with solar panels. The Ushaka Marine World Theme Park is one of several facilities to receive solar PV panels intended to reduce demand from the grid. The pilot programme should save the city 426.75MWh, or about R330 000 in its first year of operation. The growing popularity of solar water heaters has encouraged Durban manufacturer Solar Beam to spend R2.5-million on expanding its premises. A joint initiative between the University of KwaZulu-Natal and the Georgia Technology Institute of the USA will see the establishment of a Solar Energy Institute. As part of the provincial government's strategy to boost regional development, the iLembe District has been named as an Industrial Economic Hub (IEH) for the renewable energy sector. With the King Shaka International Airport (KSIA) and the Dube TradePort lying just south of the iLembe District in the eThekwini Municipality, a partnership has been created between the two municipalities and the provincial government to develop a renewable energy technology innovation hub. The other area attracting energy investors is the Richards Bay Industrial Development Zone (RBIDZ) which has been named as the site for 2 000MW liquefied natural gas (LNG) plant in terms of national government's gas-to-power plan. RBIDZ is also the site of a new biomass plant. Forestry waste, sugar cane and agricultural waste will provide the feedstock for a R2-billion facility that will largely supply the tenants of the Richards Bay Industrial Development Zone (RBIDZ) with power. The investing company Byromate, which

ONLINE RESOURCES National Department of Energy: www.energy.gov.za National Energy Regulator: www.nersa.org.za Southern African Bioenergy Association: www.saba.za.org South African National Energy Association: www.sanea.org.za

KWAZULU-NATAL BUSINESS 2018/19

SECTOR INSIGHT • The iLembe District is set to become a renewable energy hub. has wind and solar projects elsewhere in South Africa, expects to start delivering power in 2018. The provincial government wants to see the RBIDZ become a hub for renewable energy, and this bio-gas project is expected to be the first of many in solar power, wind and other types of renewable energy. The huge forestry, timber, paper and pulp industries of the province carry with them the potential to provide feedstock for the renewable energy sector. Sugar grower and producer Tongaat Hulett believes that the national sugar industry could generate between 700MW and 900MW. Biomass technology is at the centre of the conversion scheme of South African Breweries at its Prospecton plant south of Durban. Methane-gas emissions from a nearby effluent plant are piped to the plant where they are converted to electricity. The eThekwini Municipality is spending R140-million on a plant that will convert methane gas from its major landfill sites. Lanele Resources and Amatala Resources have plans to produce fuel from municipal waste.

OVERVIEW

Water New water infrastructure is being built

SECTOR INSIGHT • The fifth phase of the N o r t h er n A qu e du c t Augmentation project has begun.

he area north of the Durban central business district is one of the fastest-growing urban areas in South Africa, with a number of large office and accommodation projects going ahead simultaneously. This is obviously a welcome development for the economy, but the new buildings also create pressures on infrastructure. The multi-year, R250-million Northern Aqueduct Augmentation project was initiated in 2014 and the fifth phase of the project has recently begun. This will provide water for Durban North, Umhlanga, Newlands, KwaMashu, Phoenix and Cornubia. It is intended to be complete by the end of 2019. Apart from a number of pipelines that will serve these growing areas, a bridge across the Umgeni River will be constructed. Bosch Projects is responsible for design for eThekwini Water and Sanitation (EWS) and Gibb is doing the environmental impact assessment. JSE-listed civil engineering and construction group Esor has several pipelaying contracts within the overall project. One of the many challenges faced by the South African water sector is a shortage of engineers. A study jointly commissioned by the Water Research Commission and the South African Local Government Association (SALGA) found that the country's four-in-a-million ratio of engineers is a long way from the required 50-per-million. Umgeni Water, the province’s biggest water utility, has launched the Adopt-a-River Project, which aims to keep rivers clean, raise awareness and create jobs. The first phase of the Spring Grove Dam in the Mooi

ONLINE RESOURCES Mhlathuze Water: www.mhlathuze.co.za National Department of Water and Sanitation: www.dwa.gov.za Umgeni Water: www.umgeni.co.za Water Balance Programme: www.wwf.org.za

River area has been completed on schedule and has increased water supplies in the Umgeni River catchment area. Spring Grove takes to five the number of dams in the MooiMgeni system (including Midmar, Albert Falls, Nagle and Inanda dams), which serve more than five-million people in Durban, Pietermaritzburg and surrounding towns. When Spring Grove is complete, the total system yield will rise to 394-million m3/year. A new dam is being built at Smithfield and the wall of the Hazelmere Dam is being raised to increase capacity. A new reservoir (Waterloo) near the King Shaka International Airport, and serving this northern area, has been constructed as part of the master plan that will see water delivered to this reservoir from the Northern Aqueduct Augmentation project. The Western Aqueduct project (valued at R864-million) and the associated Northern Aqueduct Augmentation project will inject water into the rapidly developing area north of Durban. The Tugela Bulk Water Scheme (valued at R1.4-billion) will supply water to KwaZulu-Natal's North Coast.

KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Tourism KwaZulu-Natal is investing in tourism.

SECTOR INSIGHT • Airport arrivals numbers are growing. • A cruise liner terminal will be operational before 2020.

ourism is one of three priority sectors identified by the Provincial Government of KwaZulu-Natal as being the most likely to promote economic growth and create jobs. The most recent large investment in tourism infrastructure, the King Shaka International Airport (KSIA), has experienced good growth since its opening in 2010. Overall passenger growth in 2017 was 6.4%, the best percentage growth performance in the national context. KwaZulu-Natal has a varied tourism offering – mountains, heritage, beaches, conventions, sports – and the tourists who enjoy visiting the province are almost as varied. In recent years, visitors from countries in Eastern Europe such as Poland have shown that there are new markets to be tapped while tourism from and to the Middle East and India has increased because of direct flights into KSIA. Emirates, Air Mauritius and British Airways are among the airlines flying into KSIA. In KwaZulu-Natal, the combined contribution of retail and tourism to GDP is 14%. Many thousands of visitors to KwaZulu-Natal arrive by road, and the statistics show that the Mooi River toll plaza bringing visitors from Gauteng Province is a vital portal, but a very important arrival method for tourists in the high end of the market is by cruise liner. A joint venture between MSA Cruises SA and Africa Armada Consortium will spend R175-million on the financing‚ construction‚ maintenance and operation of a cruise terminal for a 25-year concession period. The Port of Durban envisages a 32 000m² area that will cater for two ships and at least 5 000 passengers. The number of cruiseship passengers attracted to Durban grew from 42 000 in 2004/05 to 157 000 in 2010/11. South Africa attracts 0.5% of the world’s cruise-ship market which comprises about 15.4-million passengers annually. The terminal should be operational in October 2019. KWAZULU-NATAL BUSINESS 2018/19

MSC Cruises itself dealt with about 90 000 cruise passengers through Durban harbour in 2014. In the summer months the MSC Sinfonia and MSC Opera sail from Durban to Mozambique and other destinations in the Indian Ocean. Another potential growth area is health tourism. Upwards of seven-million people travel the world annually for procedures, and South Africa is well placed to receive a percentage of this market. A conference held in Richards Bay in 2017 put the focus on issues such as investment, training and the development of products. One of the goals with KwaZulu-Natal tourism is to develop products to attract visitors to rural areas and to sites that are currently not on the tourist roster. The aim is to involve a broader cross-section of the population as active participants in the sector. A new and interesting project for investors is the Drakensberg Cable Car project. Thirteen technical reports have been completed and the project has now reached the stage where the private sector can invest.

OVERVIEW

INDABA LODGE RICHARDS BAY

Hotels

Catering to both business and leisure travellers, the Indaba Lodge Richards Bay is situated in the leafy suburb of Meerensee. The 66-bedroom Indaba Lodge is ideally located for both the corporate and leisure traveller within easy reach of the CBD, airport, harbour and waterfront, and it’s only a five-minute walk to Alkantsrand Blue Flag Beach. This vibrant Lagoon City encourages visitors to combine business with pleasure as they enjoy the lush beauty of this subtropical paradise combined with tranquil walks on miles of pristine beaches along the TuziGazi Coast. Richards Bay is the gateway to the famous Elephant Coast, Hluhluwe Umfolozi Big 5 Game Reserve and the Isimangaliso Wetland Park, a World Heritage Site. Towering Leopard Trees frame the modernfacade of the hotel and give a deep shade appreciated by guests as they arrive at the Indaba Lodge Richards Bay. Fully air-conditioned rooms ensure that guests stay cool even in the summer months. The Lodge’s popular Trevally’s Restaurant offers a seasonal dinner buffet or a bistro-style à la carte menu. For a more informal option, light meals are offered on the deck or a craft beer or a sundowner cocktail can be enjoyed at the ice-top bar. Braai facilities are available on the pool deck.

Research by Tourism KwaZulu-Natal shows that the coastal province consistently has the best hotel occupancies in the country. Tsogo Sun runs 14 hotels in KwaZulu-Natal, five of which are Garden Courts. Six hotels are in Durban with a further four in nearby Umhlanga, where one of the group’s most luxurious hotels, the 89-room Beverly Hills, is located. A “mega-hotel” has been created by Tsogo Sun, with the amalgamation of the Southern Sun North Beach and Southern Sun Elangeni hotels. Protea Hotels has 18 properties in the province, with seven in Durban including the Protea Hotel Edward. The upgrading of the Point area between the beach and the Port of Durban has resulted in major investments. The Docklands Hotel at the Durban Waterfront is a four-star Signature development that cost about R100-million to develop. The Royal Hotel in the heart of Durban is one of eight Three Cities Group hotels in the province. The Golden Horse Casino Hotel is a Three Cities property, and the Group administers the International Hotel School in Westville that is also hosts the Christine Martin School of Food and Wine. IFA Hotels & Resorts runs several luxury properties including the Zimbali Coastal Resort and Zimbali Lakes Resort. Signature Life Hotels has 13 properties and Gooderson Leisure has a varied portfolio. Sibaya Casino and Entertainment Kingdom, a Sun International property, is north of Durban between Umdloti and Umhlanga. The casinos in Newcastle (Century City), Empangeni (Tusk Umfolozi Casino) and Pietermaritzburg (Golden Horse Casino) are run by Century Casinos Newcastle, Peermont Global and Akani Msunduzi Management respectively. Durban’s Golden Mile is the site of the province’s biggest casino complex: the Sun Coast Casino and Entertainment World (Tsogo Sun). Airbnb is a fast-growing option in South Africa. The Airbnb visitors to South Africa in 2016 engaged in R2.4-billion worth of economic activity. Durban had the largest increase in Airbnb bookings from the previous year.

KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW ANNUAL SPORTING EVENTS AND EXHIBITIONS

Meetings and events

ONE campaign panel on ending poverty through education, World Economic Forum, Durban, 2017.

The meetings, incentives, conference and exhibition sector (MICE) has been strong in the province for some time and it was boosted by the hosting in May 2017 of the World Economic Forum on Africa, which attracted 800 of the largest companies in Africa as well as several Fortune 500 businesses. The event showcased investment opportunities in KwaZulu-Natal to an elite group of potential investors. MICE has been declared a priority sector by the provincial government. A dedicated unit within the KZN Tourism Authority, the Convention Bureau, has booked more than 50 events and conferences since 2012, bringing about R3-billion into the provincial economy. Durban's hosting of the Tourism Indaba further supports the idea that the province is a major conference destination. More than 7 000 delegates are annually attracted to the Durban International Convention Centre to exhibit South Africa's assets to international tour operators. The city has

ONLINE RESOURCES Ezemvelo KZN Wildlife: www.kznwildlife.com Hotel Investment Conference Africa: www.hica.co.za Inkosi Albert Luthuli International Convention Centre Complex: www.icc.co.za KwaZulu-Natal Tourism Authority: www.zulu.org.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net Tourism KwaZulu-Natal: www.zulu.org.za

KWAZULU-NATAL BUSINESS 2018/19

January: Dusi Canoe Marathon, Pietermaritzburg to Durban. February: Midmar Mile, Midmar Dam. April: Durban International Boat and Leisure Show, Durban. May: Tourism Indaba, Durban. Comrades Marathon, Pietermaritzburg to Durban. June: Mr Price Pro international surfing contest, Ballito. July: The Durban July, Greyville. August: Durban International Film Festival, Durban. September: Dolphin Coast Ultra, North Coast. KZN Music Imbizo, Durban. October: Zululand Expo, Richards Bay. Berg and Bush bicycle race, Drakensberg.

secured the Tourism Indaba until 2022. The range of topics covered by recent conferences held in KwaZulu-Natal is wide and includes the World News Media Congress, the Pan-African Health Tourism Congress, the National Association of Automotive Components and Allied Manufactures (NAACAM) Show and the Durban Maritime Summit. International conferences held in the 2016/17 financial year include: • 2016 International HIV and Aids Conference • World Leisure Congress • International Society of City and Regional Planners (ISOCARP) Summit • 5th African Internet Governance Forum • World Federation of Trade Unions Congress • General Assembly of the International Association for the Prevention of Blindness • World Hospital Congress.

OVERVIEW

Advancing economic transformation Black Management Forum KwaZulu-Natal has added a new branch to its network.

Mr Clifford Zungu.

lack Management Forum is an advocacy organisation with a sharp focus on managerial leadership, thought leadership and socio-economic development. As the BMF KwaZulu-Natal, we strive to ensure that our members are capacitated in these areas. KwaZulu-Natal province has seen some growth and changes over the past year, namely the election of the new provincial leadership and the launch of a new branch called eKasi branch (kwaMashu and surrounding townships). There are four BMF branches in KZN: Durban, North Coast (Richards Bay), Midlands (Pietermaritzburg and surrounding areas ) and the newly launched eKasi branch. This new branch was launched in December 2017 and is filled with young, energetic members with an entrepreneurial spirit. Since the launch of the branch under the Chairmanship of Lindani Hlongwane, the branch has partnered with the Ethekwini Municipality to launch the Youth in Agriculture programme which aims at providing information and opportunities to emerging farmers within the rural and urban areas. A Youth in Agribusiness programme was also launched, followed by an informative tour to the Inanda agricultural scheme. As part of the 2017 programme these are some of the activities undertaken by the province: • Corporate governance and supplier development training • Gala dinner in November 2017 where Mr Clifford Zungu, who is a BMF stalwart, talked about coaching and mentorship and Dr Dave Schwegmann of Nedbank spoke on the topic of "Leadership Excellence”.

In the course of 2018, we will continue to pursue the BMF goals. The year began with the opening of applications for the BMF Young Professionals Management development programme. This is a nationwide initiative geared towards young people aspiring towards being excellent leaders. Some of the modules covered in the programme are self-mastery, problemsolving and decision-making, team dynamics, and leading people.

eKasi members at the Youth Agri business launch.

eKasi leadership at a team-building session.

CONTACT INFO Postal and physical address: Durban Chamber of Commerce, 892 Umgeni Road, Durban Email: bmfkzn@bmfonline.co.za Website: www.bmfonline.co.za

KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Education and training The private sector is growing.

A new partnership has been announced between Coastal TVET College and the Moses Kotane Institute.

he unbundling from the successful Curro group of a separate tertiary entity which listed on the JSE as Stadio Holdings is a good indicator of the growth of the private sector in education. Stadio currently has three institutions: Southern Business School, AFDA (the School for the Creative Economy) and the Embury Institute for Higher Education which has recently opened two new campuses, one in Pretoria and one in Musgrave, Durban. AFDA offers qualifications in film, radio and live performances. Its campus in north Durban hosts more than 200 students. There is a strong trend towards the opening of private or independent schools, and not necessarily in the very expensive bracket. Curro believes it will be running 200 schools in South Africa by 2020, double its current number. There are six Curro schools in KwaZulu-Natal. Advtech, the other big private company, already has 27 tertiary campuses nationally, in addition to its 78 schools operating under a variety of labels. Advtech operates 10 educational sites in KwaZulu-Natal, including schools such as Crawford and Trinity House, a chefs' school (Capsicum), three Varsity Colleges and the Design School for Southern Africa. There are two universities and two universities of technology in KwaZulu-Natal, and the national distance university, the University of South Africa (Unisa), has a presence in five locations. USB Executive Development offers business courses for executives. UKZN has close to 40 000 students studying on five campuses in two cities. Greater Durban hosts Howard College, Berea (environment, engineering, law, humanities) and the Nelson Mandela School of KWAZULU-NATAL BUSINESS 2018/19

SECTOR INSIGHT • Stadio Holdings is a new post-school JSE listing. • KwaZulu-Natal has 30% of South Africa’s schoolchildren. Medicine at Congella. The UKZN administration and the Graduate School of Business are based at Westville (also science, engineering, health) whereas the Edgewood, Pinetown, campus focusses on education. The Pietermaritzburg campus offers a broad academic programme but its specialities are fine art, theology and agriculture. UKZN also hosts the National Research Foundation. The Durban University of Technology (DUT) has six faculties operating in seven campuses in Durban and in the Midlands. DUT

OVERVIEW is well known for its outstanding graphic-design school and offers one of only two chiropractic programmes in South Africa. The University of Zululand offers diploma and degree courses on two campuses at Empangeni and Richards Bay. Education faces big challenges in South Africa. KwaZulu-Natal, with a population of more than 10-million, more than half of whom live in rural areas which suffered decades of neglect, has made significant strides in providing access to education. With 30% of South Africa's pupils in its schools, the province's results have a big bearing on how the nation fares in annual examinations. There is now near universal access to primary and secondary schooling and a new drive to enrol pre-school children in Grade R has achieved a 70% success rate. The province has 1 689 early childhood development centres. The provincial government of KwaZulu-Natal bursary programme paid out R1.5-billion in the three years to 2016 and more than 5 000 graduate interns obtained jobs at provincial government departments at a cost to government of more than R100-million. For the 2016 academic year, the University of KwaZulu-Natal (UKZN) received more than 84 000 applications for the 8 770 spaces available in its first-year undergraduate programmes.

Training Technical and Vocational Education and Training (TVET) Colleges are tasked with bridging the skills gap. TVET colleges are concentrating on 13 trade areas, including bricklayers, millwrights, boilermakers and riggers. KwaZulu-Natal has nine such colleges with a total enrolment of about 80 000. R16.5-billion has been allocated by national government to skills development and infrastructure over the medium term. A range of other interventions have been launched including: • six of South Africa's biggest construction companies have established a R1.25-billion skills fund

ONLINE RESOURCES Council of Higher Education: www.che.ac.za Independent Schools Association of Southern Africa: www.isasa.org KwaZulu-Natal Department of Education: www.kzneducation.gov.za National Department of Basic Education: www.education.gov.za National Department of Higher Education and Training: www.dhet.gov.za National Research Foundation: www.nrf.ac.za

•

the National Department of Higher Education and Training (DHET) wants the country to produce 30 000 artisans per year by 20126 (the current figure is about 13 000) Sector Education and Training Authorities (SETAs) collect dues from companies by industry for training the National Skills Authority (NSA) works with SETAs in carrying out the National Skills Development Strategy (NSDS). The Human Resource Development Council of South Africa (HRDCSA) is an overarching body working on skills development and training.

National and provincial government are investing heavily in training. Various provincial government departments awarded about R316-million in support and bursaries for more then 5 000 students across the province in 2016. Coastal KZN TVET College gives students practical experience through facilities such as the Nongalo Industrial Park, where school furniture is repaired, and burglar bars and computer tables are made. The college has several sites on the South Coast and caters for 15 400 students. Majuba TVET College has a focus on engineering as the coal and steel industries are prominent in Newcastle. Some of its engineering students have done apprenticeships on Sibanye gold mines in Gauteng. The Mnambithi TVFET College is located in the Battlefields Route tourism area and offers National Diploma courses in tourism, among other qualifications. KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Banking and financial services A local agency aims to become a bank.

outh Africa’s banking and financial services sector is experiencing a surge of innovation with several new banking licences expected to be granted before the end of 2018. One of these is based in KwaZulu-Natal. Tyme, which stands for Take Your Money Everywhere, was granted a licence in 2017. The name refers to the bank’s digital origins and its plans for the future which do not involve a branch network. Commonweath Bank of Australia bought a controlling share of Tyme when it was a loans company and African Rainbow Capital is the venture’s BEE partner. The banking licence is the first to be issued since Capitec was granted a licence by the South African Reserve Bank in 1999. Capitec has since gone on to become a major player on the South African retail banking scene. It now merits inclusion in a new “Big Five”, with Standard Bank, Absa, FNB and Nedbank. Merchant banking and investment banking are the most competitive sectors with companies such as BoE Private Clients, Rand Merchant Bank and Investec prominent. The other prospective new entities are state-related enterprises: Ithala, Postbank and a Human Settlements Development Bank. The Ithala Development Finance Corporation has functioned for many years in the province as the provider of funds for small enterprises, KWAZULU-NATAL BUSINESS 2018/19

SECTOR INSIGHT • New banking licences are being approved. • Standard Bank is financing renewable energy projects. especially in areas where infrastructure is poor and access to traditional banking services is not good. The provincial government, which runs Ithala, wants to launch it as a bank as soon as possible. In 2016 Postbank (part of the South African Post Office, SAPO) received a first-level licence. Once a board of directors has been appointed and a company formed, the Reserve Bank is likely to grant the full licence. The current

OVERVIEW Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7-billion loan to enable it to open its own loan book. Three state entities are merging to create the new Human Settlements Development Bank: the National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency. The focus will be on financing housing for poorer households and for large state-funded housing projects. Part of the drive is to integrate cities better and to combat the legacy of the spatial divide that apartheid left behind. Private-sector investment will be sought. An entirely new economic sector has opened up in South Africa within the last decade – renewable energy. Financing for this investment push has come from South Africa’s sophisticated banking sector. The Power and Infrastructure division of Standard Bank, one of Africa’s biggest companies, was involved in about 40% of the projects approved within the first four rounds of bidding. In KwaZulu-Natal, banks have been vital in getting big infrastructure projects underway, a trend that is set to continue for some time to come, with provincial and national government committed to a continuing infrastructure upgrades. The European Investment Bank extended a €50m long-term loan through Rand Merchant Bank to fund the massive water systems upgrade being undertaken by the eThekwini Municipality. The investment programme encompasses two new aqueducts and the replacement of 1 600km of old asbestos water mains. RMB was also involved in several Tongaat Hulett and Richards Bay Coal Terminal projects, two major players in the provincial economy. Nedbank Capital supported Seacom’s R240-million undersea-cable project, and has signed a three-year funding agreement with healthcare group Netcare to the value of R1-billion. Finscope's 2014 survey of South African banking and financial surveys shows that between 2004 and 2014 a remarkable eight-million people

ONLINE RESOURCES Auditor-General South Africa: www.agsa.co.za Association for Savings and Investment South Africa: www.asisa.org.za Chartered Institute of Government Finance, Audit and Risk Officers: www.cigfaro.co.za Financial Services Board: www.fsb.co.za Insurance Institute of South Africa: www.iisa.co.za Postbank: www.postbank.co.za South African Institute for Chartered Accountants: www.saica.co.za South African Reserve Bank: www.resbank.co.za

were connected to the financial system. Overall, the financially included reached 31.4-million (up from 17.7-million in 2004). In a category called formally served which includes services other than formal banks with branch networks, the percentage of South Africans grew from 50% to 80%; in the banked category (more traditional but including new devices), the percentage grew from 46% to 75%. This is partly because South Africa's formal banking sector has such excellent infrastructure. Financial services group Old Mutual (a 54% stakeholder in Nedbank) is in the process of creating four stand-alone businesses out of the Old Mutual Group. This will allow the UK-based wealth management business and the New York-based asset managers to be free of linkages to the rand, while the South African businesses, Nedbank and Old Mutual Emerging Markets, can focus on their specialities. The Chartered Institute of Government Finance, Audit and Risk Officers (Cigfaro) advises institutions, trains it members in public finance and promotes the interests of professionals in the public sector. It also develops and assesses qualifications and advises tertiary institutions on the requirements for courses. In December 2017, Cigfaro ran budgeting training for municipal accounting officers who need to comply with all the requirements of the Municipal Finance Management Act. In March 2018, a national Public Sector Audit and Risk Indaba was held. KWAZULU-NATAL BUSINESS 2018/19

OVERVIEW

Development finance and SMME support Agri-processing is lucrative for entrepreneurs.

oyota South Africa is funding the newly created Toyota Empowerment Trust (TET) to the tune of R42-million. Beginning in 2018, the trust will at first train specialised automation technicians with the long-term intention of helping qualified technicians to start their own maintenance firms. In 2016/17, various government programmes, including the Expanded Public Works Programme (EPWP), created more than 41 000 full-time equivalent jobs and 166 000 work opportunities. The provincial government intends increasing this by 10% by 2020. In 2017/18, the Department of Economic Development, Tourism and Environmental Affairs (DEDTEA) allocated R57-million to helping emerging farmers get their products taken up in the food value chain. The programme is called Radical Agrarian Socio-Economic Transformation (RASET). A partnership with Spar aims to train rural shopkeepers to handle social grants. Other partnerships with TVET colleges (for business management training) and the Small Enterprise Development Agency (Seda), to provide mentorships, are planned. Operation Vula is a provincial government initiative to ensure that co-operatives and small businesses get a leg-up into the formal economy through state-led infrastructure programmes that assist them, and through procurement policies that favour them. Business Partners offers financial and non-financial help such as mentoring and consulting. The Property Management Services Division helps entrepreneurs acquire or manage property. Thara Singh (pictured above) is the managing director of HJ Shenton Valve Services in Pinetown, KWAZULU-NATAL BUSINESS 2018/19

SECTOR INSIGHT The Toyota Empowerment Trust (TET) has been launched. • The K ZN Provincial Government is supporting small-scale farmers.

KwaZulu-Natal. When she had the opportunity to buy the business for which she had been working for many years, Business Partners assisted with a property purchase. The competitive valve engineering and manufacturing industry has traditionally been a maledominated sector. The Coastal KZN TVET College has been training members of co-operatives and people working in small, medium and microenterprises (SMMEs) in the skills that will help them do well in business. Training young people

OVERVIEW is an important part of the plan to boost SMMEs. A provincial Youth Economic Empowerment plan allocates R94-million over three years to training 3 425 young people in technical skills such as bricklaying, working with concrete, diesel mechanics, boiler making, fitter and turning and plumbing. Trainees are given placements after the training is complete. The Small Enterprise Development Agency is active in supporting entrepreneurs. Seda gives non-financial support through training, assistance with filling in forms, marketing and creating business plans. In KwaZulu-Natal, Seda runs 12 incubators which either help new businesses get started or with the rehabilitation of existing enterprises. Three models are used: Technology Demonstration Centres (demonstration and training); Technology Incubators (where the focus is rehabilitation); Hybrid Centres, which combine elements of the other two models. The KwaZulu-Natal incubators include ICT and construction (three centres each), furniture and hi-tech (two each), chemicals, and essential oils. The provincial government controls two important development funding institutions, both of which report to the DEDTEA: • Ithala Development Finance Corporation • KwaZulu-Natal Growth Fund. Ithala is in the process of applying for a full banking licence. In 2015/16 Ithala financed 336 businesses and co-operatives, which led to an estimated 2 618 jobs being created. The agricultural sector was a strong focus area. Ithala's commercial and industrial property portfolio of over one-million square metres of lettable space makes it one of the biggest operators in the province. To support township and rural communities, district warehousing facilities are being built using municipal and Ithala properties. This will go a long way to assisting farmers and traders to buy in bulk and consequently get discounts on their purchases. The Small Business Growth Enterprise (SBGE) will run a pilot project, which will also contain a bulk-buying component, further assisting small enterprises.

ONLINE RESOURCES Business Partners: www.businesspartners.co.za Industrial Development Corporation: www.idc.co.za Ithala Development Finance Corporation: www.ithala.co.za KZN Growth Fund: www.kzngrowthfund.co.za National Department of Small Business Development: www.dsbd.gov.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za

KWAZULU-NATAL BUSINESS 2018/19

Another initiative aims to get small traders organised through the establishment of a provincial small traders' association. The KwaZulu-Natal Growth Fund Trust operates as a Debt Fund and an Equity Fund with a total of R1.1-billion worth assets under management. The IDC provides finance across a range of sectors from agriculture to tourism. It has holdings in several companies with a presence in KwaZuluNatal: 42.6% in Hans Merensky (Pty) Ltd, a plantation and timber mill operator; 100% in Prilla 2000, a cotton-milling operation; and 85% in Foskor, which has a phosphoric acid plant in Richards Bay. The IDC also funds local development agencies such as the Ugu South Coast Development Agency. All of the major banks have SMME offerings. Standard Bank’s Community Investment Fund (CIF) initiative extends loans to informal businesses. The CIF has distributed more than R7-million to more than 630 businesses through its six funds in three provinces. Nedbank has an enterprisedevelopment product that supports businesses with a turnover up to R35-million with at least 25% black ownership. The Masisizane Fund makes loan financing available in sectors such as agriculture and agri-processing), commercial, supply chain and manufacturing. It also offers training and technical support and funding to help businesses to comply with legislation.

LISTING

KwaZulu-Natal Provincial Government A guide to KwaZulu-Natal’s provincial government departments. All addresses are located in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kwazulunatal.gov.za.

Office of the Premier Premier: Thembinkosi Willies Mchunu

Economic Development, Tourism and Land Affairs MEC: Sihle Zikalala

5th Floor, Telkom Building, 300 Langalibalele Street Tel: +27 33 341 3300 Fax: +27 33 341 3442 Website: www.kwazulunatal.gov.za

270 Jabu Ndlovu Street Tel: +27 33 264 2500 | Fax: +27 331 310 5416 Website: www.kzndedt.gov.za

Agriculture and Rural Development MEC: Thembu Mthembu

Education MEC: Mthandeni Dlungwane

Cedara College, Cedara Road Tel: +27 33 343 8240 Fax: +27 33 343 8255 Website: www.kzndard.gov.za

Anton Lembede Building, 247 Burger Street Tel: +27 33 392 1004 | Fax: +27 33 392 1203 Website: www.kzneducation.gov.za Health MEC: Dr Sibongiseni Maxwell Dhlomo

Arts and Culture MEC: Bongiwe Sithole-Moloi

1st Floor, 330 Langalibalele Street Tel: +27 33 395 2111 Website: www.kznhealth.gov.za

222 Jabu Ndlovu Street Tel: +27 33 264 3400 Fax: +27 33 394 2237 Website: www.kzndac.gov.za

Human Settlements and Public Works MEC: Ravi Pillay

Community Safety and Liaison MEC: Thomas Mxolisi Kaunda

Tolaram House, 2 Aliwal Street, Durban 4000 Tel: +27 31 336 5300 | Fax: +27 31 336 5114 Website: www.kznworks.gov.za

179 Jabu Ndlovu Street Tel: + 27 33 341 9300 Fax: + 27 33 342 6345 Website: www.kzncomsafety.gov.za

Provincial Treasury MEC for Finance: Belinda Francis Scott

Treasury House, 145 Chief Albert Luthuli Street, Tel: +27 33 846 6800 | Fax: +27 33 846 6801 Website: www.kzntreasury.gov.za

Cooperative Governance and Traditional Affairs MEC: Nomsa Dube-Ncube

Sport and Recreation MEC: Bongiwe Sithole-Mooi

330 Langalibalele Street Tel: +27 33 264 2500 Fax: +27 33 264 6672 Website: www.kzncogta.gov.za

135 Pietermaritz Street Tel: +27 33 897 9400 Website: www.kzn.dsr.gov.za

KWAZULU-NATAL BUSINESS 2018/19

LISTING Social Development MEC: Weziwe Gcotyelwa Thusi

Transport MEC: Thomas Mxolisi Kaunda

208 Hoosen Haffejee Street Tel: +27 33 341 9600 Fax: +27 33 341 9616 Website: www.kzndsd.gov.za

172 Burger Street Tel: + 27 33 355 8600 Fax: + 27 33 355 8092 Web: www.kzntransport.gov.za

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

ETHEKWINI METROPOLITAN MUNICIPALITY 263 Dr Pixley ka Seme Street, Durban 4001 Tel: +27 31 311 1111 | Fax: +27 31 311 2170 Website: www.durban.gov.za

KwaDukuza Municipality

AMAJUBA DISTRICT MUNICIPALITY Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township, Newcastle 2940 Tel: +27 34 329 7200 | Fax: +27 34 314 3785 Website: www.amajuba.gov.za

Mandeni Municipality

Tel: +27 32 437 5000 Fax: +27 32 437 5098 Website: www.kwadukuza.gov.za

Tel: +27 32 456 8200 Fax: +27 32 456 2504 Website: www.mandeni.gov.za Maphumulo Municipality

Dannhauser Municipality Tel: +27 34 621 2666 | Fax: +27 34 621 3114 Website: www.dannhauser.gov.za

Tel: +27 32 481 4500 Fax: +27 32 481 2053 Website: www.maphumuloonline.gov.za

eMadlangeni (Utrecht) Municipality

Ndwedwe Municipality

Tel: +27 34 331 3041 | Fax: +27 34 331 4312 Website: www.emadlangeni.gov.za

Tel: +27 32 532 5000 Fax: +27 32 532 5031/2 Website: www.ndwedwe.gov.za

Newcastle Municipality

HARRY GWALA DISTRICT MUNICIPALITY 40 Main Street, Ixopo 3276 Tel: +27 39 834 8700 Fax: +27 39 834 1701 Website: www.harrygwaladm.gov.za

Tel: +27 34 328 7600 | Fax: +27 34 312 1570 Website: www.newcastle.gov.za ILEMBE DISTRICT MUNICIPALITY 59/61 Mahatma Gandhi St, KwaDukuza 4450 Tel: +27 32 437 9300 | Fax: +27 32 437 9587 Website: www.ilembe.gov.za

KWAZULU-NATAL BUSINESS 2018/19

LISTING Dr Dlamini Zuma Municipality

Mkhambathini Municipality

Tel: + 27 39 833 1038 | Fax: + 27 39 833 1179 Website: www.ndz.gov.za

Tel: +27 31 785 9300 | Fax: +27 31 785 2121 Website: www.mkhambathini.gov.za

Greater Kokstad Municipality

Mpofana Municipality

Tel: +27 39 797 6600 | Fax: +27 39 727 5501 Website: www.kokstad.gov.za

Tel: +27 33 263 1221 | Fax: +27 33 263 1127 Website: www.mpofana.gov.za

uBuhlebezwe Municipality

Msunduzi Municipality

Tel: +27 39 834 7700 | Fax: +27 39 834 1168 Website: www.ubuhlebezwe.gov.za

Tel: +27 33 392 3000 | Fax: +27 33 345 2397 Website: www.msunduzi.gov.za

uMzimkhulu Municipality

Richmond Municipality

Tel: +27 39 259 5000 | Fax: +27 39 259 0223 Website: www.umzimkhululm.gov.za

Tel: +27 33 212 2155 | Fax: +27 33 212 2102 Website: www.richmond.gov.za

UGU DISTRICT MUNICIPALITY 28 Connor Street, Port Shepstone 4240 Tel: +27 39 688 5700 | Fax: +27 39 682 4820 Website: www.ugu.gov.za

uMngeni Municipality

Ray Nkonyeni Municipality

uMshwathi Municipality

Tel: +27 39 688 2000 | Fax: + 27 39 682 0327 Web: www.hcm.gov.za

Tel: +27 33 815 2249 Fax: +27 33 502 0286 Website: www.umshwathi.gov.za

Tel: +27 33 239 9200 Fax: +27 33 330 4183 Website: www.umngeni.gov.za

Umdoni Municipality

uMuziwabantu Municipality

UMKHANYAKUDE DISTRICT MUNICIPALITY Stand 13433, Kingfisher Road, Mkuze 3965 Tel: +27 35 573 8600 | Fax: +27 35 573 1094 Website: www.ukdm.gov.za

Tel: +27 39 433 1205 | Fax: +27 39 433 1208 Website: www.umuziwabantu.gov.za

Big 5 Hlabisa Municipality

Umzumbe Municipality

Tel: +27 35 838 8500 | Fax: +27 35 838 1015 Website: www.bigfive.org.za

Tel: +27 39 972 0005 | Fax: +27 39 972 0099 Website: www.umzumbe.gov.za

Jozini Municipality

Tel: +27 39 978 4313 | Fax: +27 39 976 2020 Website: www.umdoni.gov.za

Tel: +27 35 572 1292 | Fax: +27 35 572 1266 Website: www.jozini.gov.za

UMGUNGUNDLOVU DISTRICT MUNICIPALITY 242 Longmarket Street, Pietermaritzburg 3201 Tel: +27 33 897 6700 Fax: +27 33 342 5502 Website: www.umdm.gov.za

Mtubatuba Municipality Tel: +27 35 550 0069 | Fax: +27 35 550 0060 Website: www.mtubatuba.org.za uMhlabuyalingana Municipality

Impendle Muncipality

Tel: +27 35 592 0680 | Fax: +27 35 592 0672 Website: www.umhlabuyalingana.gov.za

Tel: +27 33 996 6000 | Fax: +27 33 996 0852 Website: www.impendle.gov.za

KWAZULU-NATAL BUSINESS 2018/19

LISTING UMZINYATHI DISTRICT MUNICIPALITY Princess Magogo Bld, 39 Victoria St, Dundee 3000 Tel: +27 34 219 1500 | Fax: +27 34 219 1940 Website: www.umzinyathi.gov.za

Mthonjaneni Municipality

Endumeni Municipality

Tel: +27 35 833 2000 | Fax: +27 35 833 0920 Website: www.nkandla.org.za

Tel: +27 35 450 2082 | Fax: +27 35 450 2056 Website: www.mthonjaneni.org.za Nkandla Municipality

Tel: +27 34 212 2121 | Fax: +27 34 212 3856 Website: www.endumeni.gov.za

uMfolozi Municipality

Msinga Municipality

Tel: +27 35 580 1421 | Fax: +27 35 580 1141 Website: www.umfolozi.gov.za

Tel: +27 33 493 0761 | Fax: +27 33 493 0766 Website: www.msinga.org.za

uMlalazi Municipality

Nquthu Municipality

Tel: +27 35 473 3300 | Fax: +27 35 474 4733 Website: www.umlalazi.gov.za

Tel: +27 34 271 6100 | Fax: +27 34 271 6111 Website: www.nquthu.gov.za

ZULULAND DISTRICT MUNICIPALITY B400 Gagane Street, Ulundi 3838 Tel: +27 35 874 5500 Fax: +27 35 874 5589 Website: www.zululand.org.za

uMvoti Municipality Tel: +27 33 413 9100 | Fax: +27 33 417 1393 Website: www.umvoti.gov.za UTHUKELA DISTRICT MUNICIPALITY 33 Forbes Street, Ladysmith 3370 Tel: +27 36 638 5100 / 2400 | Fax: +27 36 637 5608 / 635 5501 Website: www.uthukela.gov.za

Abaqulusi Municipality Tel: +27 34 982 2133 | Fax: +27 34 980 9637 Website: www.abaqulusi.gov.za

Alfred Duma Municipality

eDumbe Municipality

Tel: +27 36 637 2231 | Fax: +27 36 631 1400 Website: www.alfredduma.gov.za

Tel: +27 34 995 1650 | Fax: +27 34 995 1192 Website: www.edumbe.gov.za

Inkosi Langalibalele Municipality

Nongoma Municipality

Tel: +27 36 353 0693/0681/0691 | Fax: +27 36 353 6661 Website: www.umtshezi.co.za

Tel: +27 35 831 7500 | Fax: +27 35 831 3152 Website: www.nongoma.org.za

Okhahlamba Municipality

Ulundi Municipality

Tel: +27 36 448 8000 | Fax: +27 36 448 1986 Website: www.okhahlamba.org.za

Tel: +27 35 874 5100 | Fax: +27 35 870 1164 Website: www.ulundi.gov.za

KING CETSHWAYO DISTRICT MUNICIPALITY Uthungulu House, Kruger Rand Rd, Richards Bay 3900 Tel: +27 35 799 2500 Fax: +27 35 789 1641 Website: www.kingcetshwayo.gov.za

uPhongolo Municipality Tel: +27 34 413 1223 Fax: +27 34 413 1706 Website: www.uphongoloonline.gov.za

City of uMhlathuze Municipality Tel: +27 35 907 5100 | Fax: +27 35 907 5444 Website: www.umhlathuze.gov.za KWAZULU-NATAL BUSINESS 2018/19

INTERVIEW

Msunduzi Municipality: City of Pietermaritzburg Executive Mayor of the Msunduzi Municipality, Councillor Themba Njilo, explains why investors are heading for this well-resourced city.

Cllr Themba Njilo

What are the goals of your municipality? We aim to be a safe, vibrant city in which to live, learn, raise a family, work, play and do business. Our goal is to have a well serviced city with the necessary infrastructure, accessibility and connectivity to attract investment and development that will result in jobs being created to reduce poverty and unemployment. Our goal is make the city safe, clean and friendly, and to strive for financial viability and good governance. Do you have specific projects under way to improve the city? One of the biggest projects is the Integrated Rapid Passenger Transport Network (IRPTN) which is going to revolutionise public transport. Other planned projects include the Youth Enterprise Park in Imbali, a Light Industrial Park, a Technology Hub and a huge project in Edendale, the Town Centre development. The project includes rezoning for business, land acquisition, road improvements and landscaping.

BIOGRAPHY Councillor Themba Njilo is a reputable businessman and passionate community activist who is the founder of Themba Njilo Foundation that is involved in developing the community and assisting the underprivileged. The institution runs many drug rehabilitation programmes. He is the owner of Induduzo Funeral Homes and the founder of UHOLOGO Productions that manages many recording artists. Councillor Njilo holds a Diploma in Marketing and Sales Management.

What are the economic strengths of the area? The services and government sectors remain very strong but the manufacturing sector is robust, with a number of big manufacturing enterprises, and retail and wholesale also contribute substantially to the city’s GDP. The city is home to the KZN Provincial Government, the Umgungundlovu District government, the provincial Deeds Office and the Supreme Court, all of which makes investment and development easier. Pietermaritzburg is a centre of educational excellence. How important is the municipality’s location on the N3? The N3 is the key transportation corridor connecting Gauteng with the Durban harbour. We have already seen major investments and development along the N3 including Motor City and two new hotels. Please tell us about other recent investments. The city has attracted large scale investments from the private sector and national government. Liberty Midlands Mall is now expanding and further down the N3 the Phase 1 of the Ibhubesi Industrial Park is now complete, both multi-million rand investments.

KWAZULU-NATAL BUSINESS 2018/19

INDEX

INDEX Agriculture House ��48 Black Management Forum (BMF) ��75 Business Partners ��29 Durban Chamber of Commerce and Industry ��2, 23, 25, 81 Invest Durban �� IFC Indaba Lodge Richards Bay ��31 MetGovis Integrated Property Solutions ��20 Mondi Group South Africa ��33-35 Mpact ��63 Msunduzi Local Municipality ��36, 87 Nedbank ��40-43 Petroleum Agency South Africa ��9 Richards Bay Coal Terminal ��38 Sappi ��52 Supertech Group ��26, 65, IBC Trade and Investment KwaZulu-Natal (TIKZN) ��10-19, OBC Transnet Pipelines ��57-59 Toyota South Africa ��67-69 Ugu South Coast Development Agency ��7 University of Zululand ��5 KWAZULU-NATAL BUSINESS 2018/19

Supertech now offers five Approved BMW Dealerships and two BMW Approved Repair Centres in KwaZulu-Natal. What does this mean for discerning drivers? If you want a dealership with decades of experience, a reliable network and one that’s close to home, you don’t need to travel too far. Visit Supertech in Durban, Pinetown, Newcastle as well as our new dealerships in Shelly Beach and Pietermaritzburg. Supertech Durban 8 Cliff Crescent, Bellair, Durban • Tel. 031 941 3072 • www.bmw-supertech.co.za Supertech Newcastle 1 Albert Wessels Drive, Newcastle • Tel. 034 940 0854 • www.bmw-supertechnewcastle.co.za Supertech Pietermaritzburg 9 Armitage Road, Pietermaritzburg • Tel. 033 897 8800 • www.bmw-supertechpmb.co.za Supertech Pinetown 135 Josiah Gumede Road, Durban • Tel. 031 941 3073 • www.bmw-supertechpinetown.co.za Supertech Shelly Beach 55 Main Road, Shelly Beach • Tel. 039 315 0020 • www.bmw-supertechshellybeach.co.za

CONTRIBUTION KWAZULU-NATAL, WITH 10,9 MILLION RESIDENTS, ACCOUNTED FOR 20% OF SOUTH AFRICA’S POPULATION IN 2014/15

SECTORS: AGRICULTURE/ BUSINESS SERVICES/ MANUFACTURING/ ENERGY AND WATER/ MINING AND BENEFICIATION/ TOURISM AND PROPERTY DEVELOPMENT

INVEST WITH CONFIDENCE

16% GDP

Trade & Investment KwaZuluNatal is a South African trade and inward investment promotion agency (IPA) established to promote the province as a premier investment destination and to facilitate trade by assisting local companies to access international markets.