KwaZulu-Natal Business 2013/14
KwaZulu-Natal Business 2013/14 is the seventh edition of this highly successful publication that has since its launch in 2007 established itself as the premier business and investment guide to KwaZulu-Natal.KwaZulu-Natal Business is unique as a business journal that focuses exclusively on KwaZulu-Natal and that also carries full Audit Bureau of Circulations (ABC) certification, meaning its print run and circulation of 15 000 copies is independently audited and verified.
kwazulu-natal business the guide to business and investment in Kwazulu-natal 2013/14 join us online www.kwazulunatalbusiness.co.za | www.frontiermarketnetwork.com contents contents KwaZulu-Natal Business 2013/14 Edition page 10 Introduction Foreword9 A unique guide to business, investment and tourism in KwaZulu-Natal. A knowledge partner in business 16 Trade & Investment KwaZulu-Natal is the premier trade and inward-investment promotion agency in the province. Special Features Regional overview of KwaZulu-Natal With growing government expenditure on infrastructure and the expansion of private companies’ capacity, the coastal province should continue to grow. Richards Bay A busy harbour and a diverse economy make Richards Bay an attractive investment destination. A manufacturing Big Five KwaZulu-Natal’s manufacturers are top achievers. Rural development Encouraging agri-processing and promoting access to markets are the keys to bolstering the rural economy. Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. Ports86 KwaZulu-Natal’s ports are vital cogs in the regional and national economy. 10 26 28 32 36 KWAZULU-NATAL Business 2013/14 2 contents Destination KwaZulu-Natal Tourism42 KwaZulu-Natal is developing strategies to grow its tourism numbers. Events and conference facilities KwaZulu-Natal is positioning itself as a leader in the hostinga of major events. 48 page 56 Economic sectors Agriculture52 KwaZulu-Natal is promoting agri-processing. Forestry and paper KwaZulu-Natal has extensive production capacity. 56 Sugar58 Production and profits are growing in the sugar sector. Oil and gas KwaZulu-Natal is a national leader in the oil and gas industry. 60 Mining66 Large proportions of the world’s supply of titanium and zircon come from KwaZulu-Natal. Mineral beneficiation Steel smelting and aluminium production underpin heavy manufacturing capacity in KwaZulu-Natal. 68 Manufacturing69 KwaZulu-Natal’s manufacturing sector has a broad range. Automotive70 KwaZulu-Natal’s auto manufacturers employ more than 11 000 staff between them. Chemicals and plastics KwaZulu-Natal companies are national and international leaders. 72 KWAZULU-NATAL Business 2013/14 4 All business, all the time Having spared no effort or expense in creating SAâ€™s most reliable business network, we strive for 99.999% uptime and guarantee back-up and availability of your business data. Whatever the size of your business, switch to Vodacom and rest assured that your connection and data will always be ready to work wherever you are and whenever you are there. Contact a consultant at KZN.firstname.lastname@example.org AMBROS/D35200/A vodacom.co.za/business contents Food and beverages Some of South Africa’s largest food and beverage enterprises are in KwaZulu-Natal. 73 Engineering74 KwaZulu-Natal’s engineers are delivering on sophisticated projects. Transport80 The KwaZulu-Natal transport sector plays a major role in the provincial and national economy. Construction and property Homes and offices are rapidly replacing the cane fields around greater Durban. 93 Energy100 The forestry and sugar sectors are being targeted as energy providers. Water102 Billions are being spent on water infrastructure. Telecommunications104 KwaZulu-Natal is well connected. Banking and financial services Investment banks have many opportunities to grow in KwaZulu-Natal. Development finance and SMME support Small businesses are creating jobs. Education and training Skills training is the main focus of FET colleges. Business support services The business support services sector is as diverse as the provincial economy. 108 113 124 126 Government National Government An overview of South Africa’s national government departments. KwaZulu-Natal Provincial Government A guide to KwaZulu-Natal’s provincial government departments. KwaZulu-Natal Local Government A guide to the metropolitan, district and local municipalities in the KwaZulu-Natal. 132 142 144 Reference Sector contents Index Maps KwaZulu-Natal locator map KwaZulu-Natal regional map KwaZulu-Natal municipalities KWAZULU-NATAL Business 2013/14 50 152 12 15 148 6 Contact us: email@example.com | +27(0)21 918 4488 credits Production Publisher Chris Whales Editor Katie Reynolds Researcher and writer John Young Creative director Ian Jamieson DTP operator Colin Carter Production assistant Anjé Robberts Advertising Sales director Mark Leven-Marcon Key accounts manager Loudon Cito Advertising representatives Christoff Scholtz, Jeremy Petersen, Nathalie Horswell, Colleen la Gorce, Debbie BenderOvermeyer, Sam Oliver, Shiko Diala and Veronica Dean-Boshoff Sales support manager Nadia Dicks Administration Managing director Clive During Financial controller Brett Watson Administration and accounts Charlene Steynberg, Natalie Koopman Distribution Lizé Fourie Printing CTP Distribution KwaZulu-Natal Business is distributed internationally on outgoing and incoming trade missions, through Trade & Investment KwaZulu-Natal; to 115 foreign offices in South Africa’s main trading partners around the world; at top international trade fairs; 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, companies, major stores and business-class lounges. Member of the Audit Bureau of Circulations Published by Global Africa Network (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales, Richard Pembroke Physical address: 3rd Floor, Sunclare Building, 21 Dreyer Street, Claremont 7700, Cape Town, South Africa. Postal address: PO Box 44573, Claremont 7735, South Africa Tel: +27 21 657 6200 | Fax: +27 21 674 6943 | Email: firstname.lastname@example.org | Website: www.gan.co.za Copyright: KwaZulu-Natal Business is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd. Disclaimer: While the publisher, Global Africa Network (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. Photo credits: Jerome Stoffels, Dormac Marine & Engineering, Rio Tinto, Gateway Theatre of Shopping, Illovo Sugar, Dube TradePort, Sun Images, Morgue File, Bell Equipment and South African Tourism. Cover photographs: (Durban beachfront, dolphins, sugar, ship) Dreamstime, (lumberjack, automotive engineer) Veer. KWAZULU-NATAL Business 2013/14 8 Foreword highlights KWAZULU-NATAL BUSINESS page 26 A unique guide to business, investment and tourism in KwaZulu-Natal Province. Richards Bay is more than just a port town. K page 28 The five biggest manufacturing companies in the province are industry giants. page 32 The rural eceonomy is being boosted by agri-processing projects. waZulu-Natal Business 2013/14 is the seventh edition of this highly successful publication that has since its launch in 2007 established itself as the premier business and investment guide to KwaZulu-Natal. KwaZulu-Natal Business is unique as a business journal that focuses exclusively on KwaZulu-Natal and that also carries full Audit Bureau of Circulations (ABC) certification, meaning its print run and circulation of 15 000 copies is independently audited and verified. A range of complementary online features have also been introduced to give participants in and readers of the journal a wider range of communication options. These include the website www.kwazulunatalbusiness.co.za, the KwaZulu-Natal Business e-book and a newsfeed and up-to-date news and announcements. Global Africa Network (www.gan.co.za), the publisher of KwaZulu-Natal Business, specialises in business-to-business print and electronic publications, producing a series of officially endorsed, region-specific, annual print journals. Every province in South Africa is now covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business. Global Africa Network thanks the dedicated sales team and the professional and committed writers, editors and designers who produced this edition of KwaZulu-Natal Business. We thank Trade & Investment KZN as well as the companies and other organisations that supported this undertaking. page 86 The two biggest ports in South Africa are located in KwaZuluNatal. Chris Whales Publisher, Global Africa Network Email: email@example.com www.kwazulunatalbusiness.co.za www.gan.co.za 9 KWAZULU-NATAL Business 2013/14 Regional overview of Kwazulu-natal province special feature M KwaZulu-Natal showed a growth rate of 3.4% is the Durban-Free State-Gauteng Corridor that in 2011, and with growing government ex- encompasses a wide range of interventions and penditure on infrastructure and the expansion investments, from the conversion of Durban’s of private companies’ capacity, the coastal old airport into a dig-out port, to the upgrading province should continue to grow. of Harrismith’s ability to act as a logistics hub. All of Transnet’s divisions are investing heavily By John Young in pipelines, ports and rail-freight capacity – and all of these divisions will be spending heavily in ajor projects such as the Renewable KwaZulu-Natal. Energy Development Hub planned In 2012/13, national government allocated an for eThekwini will inject hundreds of infrastructure grant of R15-billion to KwaZulumillions into the local economy. Natal. This money is to be spent on schools, KwaZulu-Natal’s two large ports and its mod- water, ports and rail infrastructure. ern new freight and passenger international airLocated on South Africa’s east coast, the port give it an important position in the nation’s province has a mix of heavy and light industry logistics sector. (from steel works and automotive works to rolled Huge investments in transport and logistics aluminium and chemical-cellulose processinfrastructure are underway (at the Port of Durban ing), rich mining deposits (of coal and mineral and the Port of Richards Bay) and are planned for sands), a strong commercial sector and good the medium and long term. Central to the vision services in every field. 11 KWAZULU-NATAL Business 2013/14 special feature ZIMBABWE MOZAMBIQUE BOTSWANA Limpopo NAMIBIA North West Mpumalanga Gauteng SWAZILAND Natal KWAZULUNATAL KwaZulu- Free State Northern Cape LESOTHO Eastern Cape Western Cape exporter, and Bell Equipment is a global leader in the heavy machinery and equipment field. The hosting in 2012 of a major BRICS summit and in 2011 of the United Nations conference on climate change (COP17) showcased the province’s suitability as a venue for meetings, incentives, conferences and exhibitions (MICE). The International Convention Centre Durban is a major asset for the province, and there are several other venues that help to make KwaZulu-Natal a leader in the MICE sector. The provincial government of KwaZulu-Natal is promoting the concept of Special Economic Economy Zones, and has identified areas where it believes there will be a natural fit for certain industries From steel works in Newcastle, aluminium smeltto boost the economy and create employment. ers in Richards Bay and oil refineries, chemicals and plastics plants south of Durban, KwaZuluThese are: • Solar equipment: North Coast. Natal has a wide range of heavy industrial capacity. • Fibre optics: North Coast. KwaZulu-Natal is a relatively small province • Electronics: Ladysmith (Emnambithi). but it has an important mining sector (con• Agricultural plants: Umhlabuylingana. centrated in the area around Richards Bay • Meat and leather: Pietermaritzburg and where mineral sands are profitably mined), Midlands. and a thriving agriculture sector with nationally A major thrust of provincial government eco- important forestry and sugar sectors. nomic policy – and national government – is Both forestry and sugar-produce byproducts the idea of beneficiation, using local products are important in the downstream chemical into manufacture something rather than simply dustry. Sappi is the world’s biggest producer of chemical cellulose. sending the raw material overseas. The Richards Bay Coal Terminal exports masAgriculture and manufacturing are the most important sectors with regard to employment and sive quantities of coal, while the Port of Durban their relative contributions to the regional economy. is the busiest port in Africa. The Dube TradePort Recent investments in the mining sector (by and associated King Shaka International Airport US pigment manufacturer Tronox), the manufac- was opened in 2010 and has the potential to turing sector (by Turkish conglomerate Arçelik boost the regional economy in a number of in the purchase of appliance maker Defy) and sectors, particularly agriculture and tourism. In the field of manufacturing, the province the automotive sector (by Chinese truck maker Powerstar) show that KwaZulu-Natal is a is well served. There are a large number of favoured destination for investment. firms that support the vehicle industry (Duys Toyota South Africa maintains its position Engineering and Dunlop are two examples). as Africa’s biggest vehicle manufacturer and The food and beverage sector is strong, as are KWAZULU-NATAL Business 2013/14 12 special feature The province’s enviable climate makes the region a hotspot of outdoor activities. the chemicals, plastics and packaging sectors. thickets and Afromontane forest. High humidity Companies like Clover and Rainbow Chicken is experienced, especially in the far north, and are prominent in the food and beverage sec- this is a summer rainfall area. The Midlands tor, while Nampak and Unilever are prominent is on a grassland plateau among rolling hills. manufacturers. Temperatures generally get colder in the far Tourism plays a vital role in the economy of the west and northern reaches of the province. region, with the well-established events sector The mountainous area in the west – the growing ever stronger. The province’s excellent Drakensberg – comprises solid walls of basalt climate lends itself to every kind of outdoor pur- and is the source of the region’s many strongly suit and its excellent beaches are always popular. running rivers. Regular and heavy winter snowKwaZulu-Natal has become a home to mass- falls support tourist enterprises. The Lubombo participation events such as the Comrades mountains in the north are granite formations Marathon and Dusi Canoe race. The province that run in parallel. has excellent game and nature reserves. iSimangaliso Wetland Park is a World Heritage Site and helps to fund 80 small businesses Regions associated with it. KwaZulu-Natal has 10 district municipalities and one metropolitan municipality, the most of any Geography province in South Africa. In economic terms, the province offers diverse opportunities: The mixed topography of the province allows for varied agriculture, animal husbandry and Northern region horticulture. The lowland area along the Indian The economic power house is Newcastle in the Ocean coastline is made up of subtropical north-west: coal-mining, steel processing and 13 KWAZULU-NATAL Business 2013/14 special feature Local and international visitors flock to see the provinceâ€™s natural assets and game farms. manufacturing are major activities. Some old coal mines are being reopened by new coal companies. Ladysmith is strategically located near the N3 and hosts major manufacturers such as Dunlop, Zorbatex, Lasher Tools, Canvas and Tent, and Defy. Game farms, trout fishing and hiking are part of an attractive package for tourists, and Zululand is a popular destination for cultural experiences. The whole region is rich in Anglo-Boer War history. agricultural region, producing sugar cane, fruit, animal products, forestry and dairy products. The uMgungundlovu District Municipality encompasses seven local municipalities (LMs) including Msunduzi LM, which runs Pietermaritzburg. Pietermaritzburg is the provincial capital and home to a major aluminium producer 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 Eastern region arts scene. The Midlands Meander is a popular Although most of this area is rural, Richards Bay tourist destination. The uMshwati LM has two is one of the countryâ€™s industrial hot spots be- sugar mills and two timber processing plants. cause of its coal terminal and port and aluminium smelters. Mining is an important sector. The Southern region other major urban centre is Empangeni, which This area is the provinceâ€™s most populous. The has several educational institutions. The King city of Durban has experienced booms in sectors Shaka International Airport is kickstarting mas- such as automotive, ICT, film and call centres. Its sive new investment in the area. iLembe District conference facilities are well-utilised but many Municipality is particularly active in seeking out opportunities still exist in chemicals and industrial chemicals, food and beverages, infrastrucnew investors through Enterprise iLembe. ture development and tourism. The beaches Western region and golf courses of the South Coast are popular Also known as the Midlands, this is a fertile with tourists. KWAZULU-NATAL Business 2013/14 14 photo: South african tourism special feature N17 MOZAMBIQUE Bethal N17 KWAZULU-NATAL PROVINCE Ermelo Standerton SWAZILAND Mpumalanga N11 Piet Retief N2 Volksrust Vrede Paulpietersburg Utrecht R33 R69 Pongola Mkuze Newcastle R34 R66 Free State N3 Vryheid R34 Nongoma Hlabisa R65 N2 Dundee Harrismith Glencoe N11 R33 R68 Hluhluwe N5 uLundi Mtubatuba St Lucia R74 Ladysmith N3 Bergville Winterton Colenso R74 Melmoth Kranskop Greytown R33 eMpangeni Richards Bay Estcourt RA LESOTHO KE NSB ERG Gingindlovu Stanger Darnall Mooi River Howick Tongaat N3 N2 D PIETERMARITZBURG R56 Ballito uMhlanga Underberg Pinetown DURBAN aManzimtoti uMkomaas iXopo uMzinto N2 Kokstad Harding INDIAN OCEAN Hibberdene uMtentweni Port Shepstone Margate Southbroom Port Edward Main Road Railway Motorway N N2 Eastern Cape 15 KWAZULU-NATAL Business 2013/14 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. The World Bank has rated South Africa among the top 30 countries for ease of doing business. South Africa is also regarded as one of the least costly areas in which to establish a business. 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. Vision In line with this, the province of KwaZulu-Natal To contribute to economic development by has established itself as a premier domestic and promoting the Province of KwaZulu–Natal (KZN) international investment and tourist destination. as the premier investment destination and the With two of Africa’s busiest ports and world- leader in export trade. 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 • Identify and package investment opportunities in KZN and highly developed industrial sector ensure a competitive edge for both local and foreign inves- • Brand and market KZN as an investment tors and unique advantages for local exporters. destination • Link opportunities to the developmental needs of the KZN community Investment in KwaZulu-Natal continues to emerge as a major contributor to South Africa’s • Ensure easy access to investment and export trade opportunities growing economy and its favourable business environment has made the province a sound investment destination for investors from around the world. Trade & Investment KwaZulu-Natal’s business objectives include: Mission Objectives Mandate Trade & Investment KZN is a South African trade and inward-investment promotion agency, established to promote the province of KwaZuluNatal as an investment destination and to facilitate trade by assisting local companies to access international markets. The organisation identifies, develops and packages investment opportunities in KwaZulu-Natal; provides a professional KWAZULU-NATAL Business 2013/14 Shareholder • • Promoting and facilitating investment as a means of increasing growth in Trade & Investment KwaZulu-Natal’s contribution to fixed investment throughout the province Export market development 16 profile Client • • • • • Facilitating investor after-care and retention Packaging and facilitating large (>R50-million) investment sector opportunities Facilitating capacity-building, thereby increasing the number of export-ready traders in KwaZulu-Natal Facilitating market development so as to increase Trade & Investment KwaZulu-Natal’s contribution to the value of exports Increasing awareness of Trade & Investment KwaZulu-Natal’s services both locally and internationally • • • • • • • • Internal process • Advocating for the creation of an environment conducive to trade and investment in KwaZuluNatal through government intervention, strategic alliances and partnerships information to both potential and existing investors and traders Assistance to both existing and new investors regarding applications for both investment and 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 Organisation – learning and growth • Municipal involvement Strengthening Trade & Investment KwaZulu- TIKZN strives to strengthen relations with local Natal’s knowledge management capabilities government to ensure a coordinated approach so as to provide an effective and efficient to investment promotion and facilitation in the service province. This is to ensure that infrastructure and • Attaining compliance with WAIPA, MIGA social-development interventions are identified and UNCTAD best practices and implemented. Local government plays a • Developing highly motivated staff and pivotal role by providing pertinent information enhancing staff competencies in terms of on the current business environment and the delivering service excellence in trade and challenges faced by existing businesses. investment services • Attaining compliance with corporate governcontact info ance standards. Durban Office: Tel: +27 31 368 9600 Fax: +27 31 368 5888 Email: firstname.lastname@example.org Trade & Investment KwaZulu-Natal undertakes Physical address: Trade & Investment House, a diverse range of key activities, all designed to Kingsmead Office Park, Kingsmead Boulevard, ensure the successful promotion of business Stalwart Simelane Street, Durban 4000 investment and trade development. Key activities 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 Gauteng Office: Tel: +27 12 346 4386 Fax: +27 12 501 1788 Website: www.tikzn.co.za 17 KWAZULU-NATAL Business 2013/14 focus Introducing the province of KwaZulu-Natal The second-largest provincial economy has much to offer local and international investors. The uKhahlamba-Drakensberg Park is one of two World Heritage Sites in KwaZulu-Natal. S outh Africa is one of the world’s top business destina- and two of the largest ports tions and is strongly supported by well-developed on the African continent (the infrastructure, is equipped with every convenience and ports of Richards Bay and delivers high levels of service expected by the business Durban), are proof of the provworld. South Africa is rated number one in obtaining credit and ince’s world-class infrastrucis also rated among the top 10 in the world in the category of ture. Investment in KwaZuluinvestor protection and good fiscal governance. The World Bank Natal continues to emerge as has rated South Africa among the top 35 countries for ease of a major contributor to South doing business. South Africa is also regarded as one of the least Africa’s growing economy and its favourable business costly areas in which to establish a business. KwaZulu-Natal is a major role-player in both the manufactur- environment has made the ing and transport and logistics sectors in South Africa and is province a sound investment a premier domestic and international tourist destination. Dube destination for investors TradePort Aerotropolis, which includes King Shaka International around the world. Airport, the Inkosi Albert Luthuli International Convention Centre KWAZULU-NATAL Business 2013/14 18 focus MANUFACTURING 15.8% FINANCE & REAL ESTATE 16.5% WHOLESALE & RETAIL TRADE: HOTELS & RESTAURANTS 15.5% TRANSPORT & COMMUNICATION 11.9% GOVERNMENT SERVICES 13.3% COMMUNITY SOCIAL & OTHER PERSONAL SERVICES 5.8% AGRICULTURE FORESTRY & FISHING 3.8% CONSTRUCTION 3% ELECTRICITY & WATER 2.5% MINING & QUARRYING 1.9% TAXES LESS SUBSIDIES ON PRODUCTS 10% KwaZulu-Natal GDPR by sector, 2011 (% contribution) Source: STATSSA (2011) Gross domestic product Economic overview 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 2011 population census, the province of KwaZulu-Natal is the second most populous province following Gauteng Province. Doing business in KwaZuluNatal 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 at a glance Capital city: Pietermaritzburg Main cities and towns: Durban, Ladysmith, Newcastle, Port Shepstone and Richards Bay Provincial head: Premier Dr Zweli Mkhize Population: 10.3-million (2011) Economically active population: 3.2-million (Q3 2012) Unemployment rate: 21.3% (Q3 2012) Area: 94 361km2 GDPR: R313.0-billion (US$43.2-billion) GDPR growth: 3.6% (2011) Per capital GDPR: R30 392 (US$3 962) (2011) CPI: 5.9 (November 2012) Exports: R77.4-billion (US$10.7-billion) (2011) Main ports: Port of Durban, Port of Richards Bay, King Shaka International Airport 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. Industry Richards Bay is the centre of operations for South Africa’s aluminium industry. The Richards Bay Coal Terminal is the 19 KWAZULU-NATAL Business 2013/14 focus second-biggest exporter of steam coal in the world and the world’s largest single coal terminal, while Richards Bay Minerals is the largest sand-mining and mineral-processing operation in the world. 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. KwaZulu-Natal has also recently benefited from rapid industrialisation, thanks to its abundant water supply and labour resources. 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. 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, including beaches with Blue Flag status, 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 onemillion foreign visitors and 10.9million domestic tourists annually. Tourism growth is underpinned by innovative tourism marketing, new and existing tourism-product development and a well-established tourism service industry. Manufacturing KwaZulu-Natal’s manufacturing sector, the second-largest in the province, has its strength in chemicals and petrochemicals (23%), food and beverages (22%) and metals and related products (19%). The manufac- KwaZulu-Natal provides many opportunities to view the Big Five. KWAZULU-NATAL Business 2013/14 20 focus turing sector is also geared for export, with the province being a leader in exports of wood and paper, and products of wood and paper, contributing 60% of exports to each category. Reasons to invest in KwaZulu-Natal • • • • • • Two of Africa’s largest and busiest ports – Durban and Richards Bay Large labour pool Access to basic services Stable political and economic climate Excellent infrastructure and logistics Access to investor incentive schemes and funding institutions Investment hotspots Aluminium conversion and fabricated products KwaZulu-Natal boasts South Africa’s largest ports. • Automotive components • Conversion (emphasis on export-oriented investment) • Electronics • Call centres and BPO (business process outsourcing) The province of KwaZulu-Natal offers competitive investment • Engineering advantages and opportunities, enhancing this region’s status as a • Metal works preferred investment destination. • Petrochemicals Dube TradePort • Food processing • Chemicals and wood KwaZulu-Natal’s continued success in international trade • Wood products is enhanced through improved transport and logistics inKwaZulu-Natal’s ICT and ma- frastructure. The Dube TradePort, which is home to the chinery and equipment sector King Shaka International Airport, incorporates an industrial absorbs roughly half of the to- development zone and will be linked with the existing sea ports tal investment flowing into the of Durban and Richards Bay. region while manufacturing atThis new development will include key components such as a tracts about a third of all invest- cargo terminal, Tradezone, support zones and the Agrizone. It will ment. Tourism is a key driver of present a new-generation, multi-faceted economic hub for the proveconomic growth and an impor- ince and the country at large. The multi-nodal, integrated logistics tant catalyst for future economic platform bodes well for sustainable job creation and the attraction of further fixed investment. development. • Investment opportunities 21 KWAZULU-NATAL Business 2013/14 focus Richards Bay is presently South Africa’s leading port in terms of cargo volumes and handles in excess of 90-million tons per Durban harbour annum. The port serves the The Durban harbour is one of the busiest in Africa and has one of coalfields of KwaZulu-Natal the world’s largest and best-equipped container terminals, han- and Mpumalanga, as well as dling 2.6-million TEUs (twenty-foot equivalent units) a year. The timber and granite exporters harbour’s motor vehicle terminal handles two thirds of all motor from the Eastern Cape and vehicles entering or leaving South Africa. The port also boasts Northern Cape provinces. The a sugar terminal that is responsible for 65% of all the country’s Richards Bay Coal Terminal has sugar exports. Durban’s direct link to worldwide ports and its also been upgraded to increase reputation for serving the shipping industry is unmatched by any its capacity to 91-million tons other port in South Africa. per annum. Special Economic Zones Special Economic Zones (SEZs) are loosely defined as ‘designated areas in countries that possess special economic regulations that are different from other areas in the same city. Moreover, these regulations tend to contain measures that are conducive to foreign direct investment. Conducting business in an SEZ usually means that a company will 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. Richards Bay harbour The Port of Durban has one of the best-equipped container terminals. Dube TradePort incorporates the King Shaka International Airport and an industrial development zone. KWAZULU-NATAL Business 2013/14 22 focus receive tax incentives and the districts, has an advantage by having a lower opportunity cost opportunity to pay lower taxes’. of production. In KZN, SEZs are viewed as Some examples of SEZs are Industrial Development Zones, Free critical, not only in stimulating Ports, Industrial Parks/Estates, Science and Technology Parks, export growth, but also job cre- Sector Development Zones and Spatial Development Corridors. ation, foreign exchange earnings, industrial decentralisation, Moses Mabhida Stadium access to foreign manufactur- The stadium design brief called for the design of ‘a state-of-the-art ing technology and know-how. landmark sports facility with excellent amenities, and a sustainThe approach to growing the able recreational and multi-disciplinary sporting venue’ – and that KZN economy firmly revolves the iconic Moses Mabhida Stadium has certainly proved to be. Having hosted six matches, including one semi-final, during around infrastructure development, enterprise support, in- the 2010 Soccer World Cup, the Moses Mabhida Stadium has vestment and trade linkages, set itself apart in many respects. The stadium’s unique design and support to key priority enables it to host a wide range of sporting and cultural events. sectors (manufacturing, agriculture, tourism, ICT and the green economy). SEZs provide opportunities to exporters located throughout the province – businesses do not necessarily have to be next to the sea and airport to benefit. Simply put, the theory of comparative advantage would position each of the 11 identified districts, so that there is at least one area of economic The Richards Bay Industrial Development Zone. activity which, relative to other The unusual design of the Moses Mabhida Stadium has made it an iconic landmark in Durban. 23 KWAZULU-NATAL Business 2013/14 focus It is visually inspiring and allows for easy access and spacious public areas in and around the stadium, which contributes to a memorable spectator experience. The Moses Mabhida Stadium is part of the strategic initiative of the province to ensure that Durban becomes Africaâ€™s premier sporting destination. Automotive Supplier Park The park will provide for a low-cost, single location to house automotive component manufacturers and suppliers. The park site will be located in close proximity to key assembly plants and the Port of Durban, enhancing supply-chain management to both local and international markets. 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 cutting-edge financial institutions, providing specialised and professional business services in all fields. Combined with its abundant natural resources and diverse cultures, KwaZulu-Natal offers a world-class business destination, where doing business is a pleasure. Housing and accommodation Most homes in KwaZulu-Natal are sold or leased through a licensed real-estate agent. A list of estate agents per geographic area may be found on www.propertywebsa.co.za or www.myproperty.co.za. An Automotive Supplier Park will be developed close to the Durban harbour. Education KwaZulu-Natal has two universities, including one of the Durbanâ€™s beachfront is a hive of activity, owing to its wide range of hotels, restaurants and bars. KWAZULU-NATAL Business 2013/14 24 focus country’s largest universities, The province generously caters for almost every taste imaginathe University of KwaZulu- ble from historical sites, game reserves and country meanders to Natal, which spans five cam- arts and crafts, the infamous bunny chow and fascinating cultural puses, one in Pietermaritz- experiences. KwaZulu-Natal is also home to award-winning golf burg and the remainder in the courses and a host of world-class festivals and events. greater Durban area. There are several technical colleges, the flagship being the Durban University of Technology. The province of KwaZulu-Natal is the first to launch an investment There are also a large number protocol handbook in South Africa. The Investment Protocol Handof training institutions offering book serves as a guide to various business processes and policies within KwaZulu-Natal, with particular focus on the ease and cost of career training. Elementary, primary and doing business in the province. MEC for the KwaZulu-Natal Departsecondary schools may be ment of Economic Development and Tourism Michael Mabuyakhulu found throughout every urban together with Trade & Investment KwaZulu-Natal hosted the Investneighbourhood in KwaZulu- ment Protocol Launch on 11 May 2011 at the Hilton Hotel in Durban. Natal, some of which are MEC Mabuyakhulu said, ‘As the province of KwaZulu-Natal and the ranked among South Africa’s country, we have – over the past few years – made a sustained focus on removing bottlenecks to ensure efficiencies in order to ensure best schools. For further information, see that our province becomes the investment destination of choice.’ The handbook covers issues such as: www.kzneducation.gov.za. • The regulatory environment Health and welfare • The processes involved to comply with the regulations Throughout South Africa, both • The cost of doing business public and private healthcare • The length of time it takes to conclude the compliance processes is offered. Many corporate employers offer a subscription A definite need for the handbook was highlighted by Trade & Investor a partially subsidised sub- ment KwaZulu-Natal due to the many challenges experienced by scription to a medical insur- both service providers and their clients in the past. The Investment ance fund or medical aid fund. Protocol Handbook now provides a platform for a mutual level of Primary healthcare is available understanding and transparency within the business environment, free of charge at all government which will ensure that all parties adhere to the same rules and hospitals. regulations while the duration of previously lengthy processes may For more information on be shortened. the KwaZulu-Natal Health Compiled and published by Trade & Investment KZN, the Department, you can visit Investment Protocol Handbook is not a definitive document. The www.kznhealth.gov.za. processes documented in this booklet provide an overall view and will differ from project to project, depending on the project size and Leisure the sector in which they are implemented. This notwithstanding, the KwaZulu-Natal’s subtropical protocol is an up-to-date reflection of the processes and will be coastline is washed by the further updated annually so as to ensure relevance of information warm waters of the Indian and assist business decision-making. Ocean, the hinterland is swept by sweet savannah and the province is protected by the read more towering magnificence of the Visit: www.tikzn.co.za Drakensberg Mountains. A first for South Africa 25 KWAZULU-NATAL Business 2013/14 special feature Richards Bay A busy harbour and a diverse economy make Richards Bay an attractive investment destination. he Port of Richards Bay is the bestknown aspect of this growing town, but mining, aluminium smelting and steel, automotive and fertiliser manufacturing are all important sectors of a thriving and varied economy. The declaration in 2011 of the Richards Bay Industrial Development Zone (RBIDZ) further strengthened the investment potential of the area. Established as a harbour to supply British troops engaged in battle against the Zulu kingdom in 1879, the Port of Richards Bay really came into its own nearly a hundred years later when it was converted into a deep-water port and connected to the Highveld by railway lines. That connection remains strong today, and the export of coal from Mpumalanga is the sole T function of the Richards Bay Coal Terminal (RBCT). A privately owned operation, RBCT is the single biggest coal export terminal in the world. Delivery by Transnet Freight Rail (TFR) averaged 63.3-million tons (mt) per year for the five years to 2011, but hit a record high of 68.5mt in 2012. (www.platts.com). Among the owners of RBCT are Anglo Coal, BHP Billiton, Sasol Mining, Xstrata and Exxaro. The owners and TFR are working towards using the full 91mt capacity of the RBCT. At the same time, Transnet is investigating opening its own coal terminal, with the aim of opening up new markets for smaller coalmining companies. Other parts of the Port of Richards Bay are receiving significant capital injections, as special feature reported on in the ports feature elsewhere in this publication. Investments by the Transnet Group in freight rail and locomotives (R200-billion) and the general freight business (R150-billion) will have a direct impact on Richards Bay. The rail corridors serving Richards Bay and Durban will receive nearly R40-billion in additional funding between 2011 and 2015, giving a further boost to economic development in the region. Richards Bay Minerals and Exxaro KZN Sands are major players in the mining industry with titanium slag being produced from ilmenite. BHP Billiton’s two aluminium smelters are the biggest industrial entities in the area. Foskor has a large fertiliser plant in the city, and internationally renowned heavy-equipment manufacturer Bell Equipment is also based in Richards Bay. The hinterland has plentiful supplies of timber and sugar cane where companies such as Sappi, Mondi and Tongaat Hulett are active. • • • • • Flat-rolled iron/steel Machine accessories (tachometers, stroboscopes) Chainsaw manufacturing plant Air compressors for refrigeration equipment Electrical switches RBIDZ has: A strategic location near rail links to Johannesburg • Proximity to the Dube TradePort • Access to Richards Bay Port, the largest port in South Africa • Access to minerals such as titanium ore and granite blocks • Access to forestry products from the hinterland • Massive potential for downstream manufacturing of products currently being exported through Richards Bay Port: coal, chrome ore, alumina, granite and wood chips Downstream beneficiation is a key focus of Richards Bay Industrial South African national and provincial indusDevelopment Zone trial policy, so investors in that field are being actively encouraged. South Africa’s newest operating industrial develThe RBIDZ has set a goal of attracting opment zone (IDZ) is boosting Richards Bay’s R5-billion in investment and creating 5 000 jobs already robust economy. The provincial govern- in the years to 2016, and there has been keen ment of KwaZulu-Natal now holds 100% of the interest shown by Chinese and Indian companies. RBIDZ through the Department of Economic Development and Tourism. The Tata Steel ferrochrome smelter was the first Connected investment in the RBIDZ with input of more than R700-million that has created 320 permanent jobs. Richards Bay is administered by the Umhlathuze South Africa has three active Industrial Local Municipality and falls within the District Development Zones, with East London and Municipality of uThungulu. Richards Bay is conCoega in the Eastern Cape being the other two nected via the N2 to the areas north and south of to be licensed. The idea behind an IDZ is to it and with the interior by the John Ross highway. create more attractive conditions under which The Umfolozi Further Education and Training manufacturing can take place, thus stimulating College has four campuses, two of which are foreign direct investment. The provincial govern- located in Richards Bay. ment has budgeted R57-million make the RBIDZ a preferred investment destination. Research by the RBIDZ and development read more economics consultancy Urban-Econ has found that several manufacturing enterprises are par- Visit: www.frontiermarketnetwork.com/ ticularly well suited to be developed in the zone: article/1137 • 27 KWAZULU-NATAL Business 2013/14 special feature A manufacturing Big Five KwaZulu-Natal’s manufacturers are top achievers. he province of KwaZulu-Natal hosts a number of South Africa’s top companies across a range of sectors. In the automotive original-equipment manufacturing sector, Toyota South Africa and Bell Equipment are the undoubted leaders in their respective sections of the market. Unilever South Africa’s large range of brands in the fast-moving consumer goods (FMCG) sector form part of the daily experience of millions of South Africans. Tongaat Hulett not only grows and makes sugar and related products, it also owns more than 10 000 hectares of land on which it plans to develop a range of industrial, commercial and residential projects. Hulamin is a highly respected leader in the aluminium-finished-product sector. T awaiting delivery within South Africa or export at the Toyota plant on the side of the M4 highway south of Durban is impressive. The numbers, if anything, are even more impressive: sales in 2012 of 121 276 vehicles, of which 5 315 were exported, R70-million invested in a new production line for minibus taxis, a staff complement of more than 8 000 (most of whom work in Durban), and R8-billion spent on plant modernisation. The Quantum taxi becomes the fourth type of vehicle to be manufactured in Durban, joining the Corolla car, the Hilux truck and the Fortuner SUV. All of these brands are tremendously popular within South Africa. South African-built Toyotas are found in about 80 countries around the world. Since Toyota began making cars in South Africa, over three-million units have been made. Toyota South Africa Bell Equipment For more than 30 years, Toyota has been South Africa’s number-one brand. The sight of thousands of gleaming new cars KWAZULU-NATAL Business 2013/14 Bell Equipment has manufacturing plants in Richards Bay and Germany. Bell makes more 28 special feature than 50 types of loaders, haulers, tri-wheelers and articulated dump trucks (ADTs). The company began as an engineering and equipment-repair shop for Zululand farmers, but when Irvine Bell invented a hydraulic loader that could pick up and load harvested sugar cane, the business started to expand. Now Bell Equipment has a significant presence in Africa, the Far East and Europe. It has a joint manufacturing deal and licensing arrangement with John Deere (the US), and other collaborations with Hitachi (Asia-Pacific), Kato Works (Japan) and Liebherr (Europe). Bell is listed on the JSE and revenue in 2011 went beyond R5-billion. The company’s Richards Bay and Germany factories took on 1 000 new staff in the course of 2012. of refined-carbohydrate products. Biofuels and renewable energy are expected to grow within the company’s portfolio as new technologies and the need for green solutions become more important. Tongaat Hulett has sugar operations in six Southern African Development Community (SADC) countries, four mills in South Africa and a large refinery in Durban. Voermol Feeds, an animal-feeds company, is located at one of the mills. Four plants convert about 600 000 tons of maize into starch every year. The property side of the business has become increasingly important as the urban edge has expanded northwards beyond Durban. Large parts of what used to be cane fields are now covered in houses, offices and business parks, and Tongaat Hulett Developments (THD) has many more developments in the pipeline. Unilever South Africa Unilever is South Africa’s number-one advertiser, a reflection on the huge number of brands put out by this large fast moving consumer goods manufacturer. In 2011, Unilever spent R1.2-billion on promoting its products in nine product categories. It is the market leader in seven of these. Famous brands include Omo washing powder, Lipton tea, Knorr soup, Ola ice cream and Elizabeth Arden (in the home and personal-care category). More than 3 000 people work for Unilever at five manufacturing plants and two offices across South Africa. Headquarters are in La Lucia. In 2011, the company opened a new savoury-foods plant in KwaZulu-Natal, with the capacity to produce 65 000 tons of product in a year. This is second-largest facility in the group. Hulamin Pietermaritzburg-based Hulamin has developed a global reputation for excellence in the field of semi-fabricated aluminium products. It is the number-one producer in Africa. The company has recently completed its R970-million rolled-products expansion product, putting it in a position to expand capacity still further. Rolled products are manufactured at plants at Edendale and Camps Drift, while extrusions are made at a dedicated Hulamins Extrusions factory in Pietermaritzburg. Rolled products are supplied to companies in the packaging, construction, transport, automotive, engineering, electrical and electronics sectors. Hulamin has offices in the US and Europe. Tongaat Hulett Tongaat Hulett is a company best-known outside KwaZulu-Natal as a sugar-cane grower and sugar producer, but the company has a diverse range of activities. These include property development, land management and the production read more Visit: www.frontiermarketnetwork.com/ article/1700 KWAZULU-NATAL Business 2013/14 29 profile Hulamin Hulamin is one of the leading manufacturing businesses in South Africa, is listed on the JSE, and has carved out a niche in the global aluminium rolled-products market. Think Future. Think Aluminium. Think Hulamin. The business Hulaminâ€™s corporate symbol, the Circle of supporting the growth of aluminium usage in Synergy, illustrates its commitment to partner- its chosen market sectors. It aims, in the first ships with its suppliers and customers and the 10 years as a listed company, to double the size communities in which it operates. Hulamin is of the business. committed to responsible business leadership and good governance, and to making a positive impact on the economy, environment and communities in which it operates. Local and international building and construction, packaging, transport and automotive, and engineering industries. Target markets Hulamin manufactures and markets high-quality rolled and extruded aluminium products that meet the needs of its customers in South Africa and internationally. Key facts and figures Year established: 1940 No of staff: 2 053 Turnover: Turnover for 2012 financial year was R6.5-billion. Core purpose Hulaminâ€™s core purpose is to consistently meet or exceed the reasonable expectations of its major stakeholders (which specifically include its employees, customers, suppliers, shareholders and the communities that surround it). The company does this by creating value through the manufacture of high-value aluminium semi-fabricated products. In doing so, Hulamin contributes to the upliftment of the standard of living in the region. It achieves this by stimulating business activities associated with adding value to the large quantities of primary aluminium produced in the region and through pursuing related business opportunities within which Hulamin can further apply its capabilities. BEE status Level 3 contact info Key contact people: Richard Jacob, Chief Executive Officer Dave Austin, Chief Financial Officer Moses Mkhize, Manufacturing Director Tel: +27 33 395 6911 Fax: +27 33 394 6335 Email: email@example.com Physical address: Moses Mabhida Road, Edendale Postal address: PO Box 74, Pietermaritzburg 3200 Website: www.hulamin.co.za Vision Hulamin continually seeks to grow its business by satisfying the demands of its customers and KWAZULU-NATAL Business 2013/14 30 focus Leading sustainable growth Hulamin is the leading producer of semi-fabricated aluminium products in Africa. The company recently entered into a groundbreaking agreement with Nampak to supply aluminium coil for the manufacture of aluminium-bodies beverage cans. Think Future. Think Aluminium. Think Hulamin. O ver the years, South Africa’s beverage cans, both soft and beer cans, were produced with steel body and aluminium can-ends and tabs. With the new Hulamin-Nampak agreement, South Africa will follow the global trend of replacing these tin-plated steel beverage cans with aluminium-bodied cans as from 2013. Founded 62 years ago, Hulamin has grown into an independent 21st-century company, having carved out a unique global position in the supply of rolled and extruded aluminium products. With offices in South Africa, Europe, the US and headquarters in Pietermaritzburg, Hulamin exports to customers around the world while distinguishing itself as a key supplier to the South African industry. A mid-stream manufacturer, Hulamin Rolled Products supplies high-value rolled sheet, foil and plate products to the Aluminium coils from the twin packaging, building and construction, transport and automotive, roller caster. electrical and electronics as well as general engineering markets globally, while Hulamin Extrusions offers local and flexible valueadded extruded products to Southern African customers. High as a constituent of the Socially quality is consistently ensured through detailed product-quality Responsible Investment Index, plans that meet the requirements of BBA, Lloyds, RVA, SANAS, which assesses and recognisDNV and ABS. Hulamin is also accredited with ISO 9001:2000, es companies for embracing ISO/TS 16949, ISO 14001, OHSAS 18001 and ISO 22000 stand- the triple-bottom-line method ards. One of Pietermaritzburg’s largest employers of skilled and of doing business. As a leader semi-skilled people, Hulamin is strong on the development of in the supply of aluminium in its employees regardless of race, gender or disability, although Africa, global pioneer in aluit places emphasis on people from designated groups. A Level minium solutions, and comThree BBBEE contributor, Hulamin is 10% black-owned and 5% mitted partner in the upliftment owned by its employees through employee share option plans. of living standards in the local Hulamin focuses its corporate social investment (CSI) efforts on community, Hulamin remains education, HIV and Aids, community skills development, welfare, resolutely passionate about environment and crime prevention. In 2012, 43% of the CSI sustainable development in spend was invested in HIV and Aids and welfare programmes the region. alone. The company’s good safety record is attributable to a rigorous safety, health and environmental policy. With a holistic read more environmental emphasis that focuses on carbon footprinting and emissions prevention, Hulamin prides itself in contributing to a green economy. In 2012, the JSE Ltd continued to include Hulamin Visit: www.hulamin.co.za 31 KWAZULU-NATAL Business 2013/14 special feature Rural development Encouraging agri-processing and promoting access to markets are the keys to bolstering the rural economy. he national budget announced in 2013 catered for an 18% increase in the funds allocated to rural development, bringing the total to R1.2-billion. Fencing schemes, the support of co-operatives, helping emerging farmers get access to markets, and the increased commercialisation of small-scale farms are all part of a national plan to spread the benefits that the agricultural sector brings beyond a small group of large commercial farmers. Poverty and hunger are present in many rural parts of South Africa. The worst-hit areas were homelands in apartheid South Africa, whole regions that were denied investment for decades. T Rural development strategies are attempting to overcome these years of neglect and set the rural heartland on a path to recovery. At the strategyâ€™s core (coordinated by the National Department of Agriculture, Forestry and Fisheries, DAFF) is food security. The entire value chain of agriculture is under scrutiny, with the aim to help small-scale farmers by improving infrastructure, creating new markets and assisting them to gain access to the big buyers such as supermarkets. In many areas, private companies such as South African Breweries, Woolworths and Pick n Pay are already on board. Massmart is com- special feature mitted to creating opportunities for emerging Mabuyakhulu said, ‘SEZs can also assist in farmers through its Direct Farm Programme. addressing chronic rural-urban migration – a DAFF aims to increase the number of small- phenomenon characterising most rural areas in holder producers in the country by 50 000 in South Africa.’ The DEDT’s proposal for SEZs in 2014 and to have a total of 250 000 by the year KwaZulu-Natal includes several that emphasise 2020. As the DAFF strategic plan says, ‘There is rural development: a need to coordinate and integrate all the sup- • uMgungundlovu. Leather and creative inport provided to smallholder and subsistence dustry. Value chain backs into cattle farming. • uMkhanyakude. Agricultural mechanisation. producers.’ Links to Swaziland and Mozambique, fertile In 2012, National Rural Development and land of Makhathini Flats and Mkhuze indusLand Reform Minister Gugile Nkwinti announced trial and manufacturing park. that government is thinking about establishing a rural co-operative bank. The bank would be • Zululand. Agri-processing. Plans to build large abattoir, link to established farmers used to reach small-scale farmers and assist geared to export. them in making their enterprises more profitable. The KwaZulu-Natal provincial government’s • Ugu. Perishable products. Established macademia nut production and proposed Agribusiness Development Agency (ADA) is the centre of high-value dry grains such as lentils main coordinating body for rural development and peas. in the province. The focus of the ADA in the • Sisonke. Furniture and paper-making. short term is on: • Beef production. Participants include The DEDT is paying for 70 students to study Besters in Ladysmith with the goal of reviv- co-operatives management at the University ing beef production and improving quality. of Zululand. It has also partnered with Tongaat • Dairy farming. Amakhoba Dairy is com- Hulett in supporting the cultivation of 964 hecmunity owned and produces 7 500 litres tares of sugar cane. The R67-million project reof milk per month, generating R1.3-million. sulted in the creation of 61 permanent jobs. The ADA aims to help increase this, and to do DEDT invested R54-million. Standard Bank’s Agricultural BEE fund aims to the same at Bayonne farm. • Sugar cane. Small-scale farmers supported help successful land claimants make a success by ADA increased from 42 to 180 in 2012. of the agricultural venture that they have obtained. • Crop production. Provision of inputs TechnoServe is an organisation that helps ruto emerging farmers includes irrigation ral entrepreneurs and communities expand their schemes, pack and storage facilities, and businesses. Pietermartizburg-based Owethu Products and Projects now also sells soup, potato boreholes. The ADA will in future be housed in the KwaZulu- products and rice. In an effort to integrate rural communities in Natal Department of Agriculture, Environmental Affairs and Rural Development (DAEARD). conservation, Ezemvelo (the guardian of wildlife DAEARD held a two-day Emerging Farmers in the province) sponsored the training 15 field rangers from the Bergville area in 2012. The Summit in Pietermaritzburg in January 2013. In presenting the 2013/14 budget of the rangers will watch over issues such as stock KwaZulu-Natal Department of Economic theft and game poaching. Development and Tourism (DEDT), under which the ADA fell at the time, MEC Mike Mabuyakhulu read more said that his administration strongly supported the idea of introducing Special Economic Zones (SEZs), an initiative of the National Department Visit: www.frontiermarketnetwork.com/ article/1701 of Trade and Industry (dti). 33 KWAZULU-NATAL Business 2013/14 message Improving food security is a priority Minister for Agriculture, Forestry and Fisheries Tina Joemat-Pettersson highlights the priorities of the department in improving the lives of ordinary South Africans. The ‘right to food’, as enshrined in our Constitution and the Freedom Charter, demands a rethinking of our past approaches to food security. We can produce enough food, but whether the poor can afford the food on the shelves largely determines South Africa’s food-security status as a country. High food prices and food-price volatility will be one of the greatest challenges to our nation over the next few years. This will further be exacerbated by high fuel and high energy prices. To curb these challenges, smallholder farmers will be assisted with the provision of livestock, tractors, implements, seeds and fertilisers. ‘One family, one vegetable garden’ should be the mantra of each and every family in South Africa. security economy will improve access to markets for especially smallholder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. The entire value chain of biofuels will also be a priority. Employment Food processing and agroindustries have provided jobs, demonstrating growth of over 25 000 agricultural jobs in the sector for the third quarter of 2011. A further 6 000 agriculture-related jobs were created in the fourth quarter of 2011, which is a year-onyear growth of 3%. This has brought the total employment in the sector to 630 000. A s the Department of Agriculture, Forestry and Fisheries (DAFF), we believe that the goal of a developmental state can only be reached when our people gain access to food within an economy that promotes sustainable livelihoods. For this reason, our draft food-security policy and zerohunger strategy promotes equity and prioritises the eradication of poverty and reduction of inequality among our people. International trade South Africa’s trade of both primary and processed agricultural products has grown from R10-billion worth of exports in 1996, to about R48-billion in 2011. Our wine exports are soaring, notwithstanding the recent global economic slowdown. We are now exporting three times more wine than we did a decade ago. Exports of fish Agro-processing We will increase agroprocessing investments as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, and forestry. R50-million will be allocated for the promotion of local agro-processing businesses. An equitable-food- KWAZULU-NATAL Business 2013/14 34 message and fish products have rapidly Assistance Scheme, with its ing the Vaalharts-Taung irrigation scheme expanded in China and Cam- emphasis on infrastructure reeroon. Timber and forestry pairs. An amount of more than • The refurbishment and products are gaining ground R990-million has been made upgrading of agricultural in China and Indonesia. We available through the MTEF colleges are exporting more and more period until 2014/15 as part of • Various projects such as grain storage facilities the scheme. maize to Zimbabwe. and rehabilitated irrigaAnimal disease outbreaks Despite our success story tion schemes in the foras a country that is a net ex- have presented serious chalporter of food, international lenges to our industry. Our demer homelands, fencing trade has yet to include more partment will have to improve including border fences black farmers in the equa- on its capacity to deal with and animal quarantine tion. As a department, we are such disasters, as they impact facilities at our borders committed to changing this. adversely on the rural economy. To support these initiatives, the Our department is posiR954-million is allocated Comprehensive Agricultural tioning itself to participate in a for plant and animal produc- Support Programme (CASP) is meaningful way in BRICS. The tion, including inspection allocated R1.5-billion, of which department will open offices in and laboratory services, and over R52.5-million will be used Russia, India and Brazil, in ad- R935-million for agricultural for infrastructure at the agriculdition to the one that is already research, which represents tural colleges, R322-million for operating in China. a substantial increase over the extension recovery plan, the previous year’s allocation. R762-million for infrastructure Furthermore, R868-million (mostly on-farm) and R398is allocated to food-security million for flood-damaged inThe department is the custo- initiatives and R349-million frastructure in disaster areas. dian of South Africa’s forest for extension support serIn addition, the Land Care resources, which cover over vices, including new-farmer allocation for the coming year 40-million hectares of the development support. is R115-million, while the Ilima/ country’s land surface area. Our ‘Strategic Integrated Letsema programme gets a The forestry sector employs Project 11’ on agro-logistics total of R415-million. I appeal to all members of about 201 025 workers and rural infrastructure (part and provides approximate- of the integrated infrastructure the department and readers of ly 77 000 direct jobs and plan approved by the Cabinet this publication to look deep 30 000 indirect jobs. The and the Presidential Infrastruc- into your work and your hearts Forestry and Natural Resources ture Coordinating Commission) and ask what more you can do Management branch will get includes plans for the following: to contribute to making South R1.2-billion during this financial • Fresh-produce market- Africa a better country. Togething depots for smallholder er, we can work towards food year to manage our forests and security for all. farmers natural resources. Our country has been • Production infrastructure for crops and animals plagued by natural disasters and animal diseases. Between • The revitalisation of various irrigation schemes, includDecember 2010 and January 2011, we had devastating floods in a number of provinces. read more We have begun the process of implementing the Flood Visit: www.nda.agric.za Funding allocation 35 KWAZULU-NATAL Business 2013/14 special feature Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. South Africa fact file Capital: Pretoria Population: 51.8 million Area: 1 220 813km2 GDP: R2 964-billion (2011) GDP growth: 3.1% (2011) Income per capita: R58 549 (2011) CPI: 6.1% y/y (April 2012) PPI: 6.6% y/y (April 2012) Unemployment: 25.5% (Q3 2012) Gini Index: 57.8 (2009 UN Report) Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 6.2 4.1 6.2 6.5 2.9 -6.3 4.0 4.6 2.7 Q2 Q3 5.7 7.4 6.7 3.1 4.5 -2.8 2.8 1.0 3.2 6.7 5.6 4.8 5.0 1.8 1.8 3.1 1.7 Q4 4.3 2.7 6.4 6.0 -1.7 3.5 4.5 3.2 Annual 4.6 5.3 5.6 5.5 3.6 -1.5 2.9 3.1 Gross domestic product South Africa’s real gross domestic product (GDP) growth slowed to a 2.7% increase on a quarteron-quarter seasonally adjusted annualised (q/q saa) basis – 2.1% year-on-year (y/y) in the first quarter of 2012 from 3.2% q/q saa (2.9% y/y) – in the fourth quarter of 2011 (Table 1). The largest industries, as measured by their nominal value added in the first quarter 2012, were finance, real estate and business services, making up 19.3% of the economy, and general government services making up 14.6%. The q/q saa changes in value added by the primary, secondary and tertiary sectors were -11.2%, 6.4%, and 3.0% respectively, during the first quarter of 2012. What is noteworthy, however, is that the mining sector – the number-one export industry in the country – declined by 16.8% q/q saa in the first quarter, due in part to a six-week illegal strike at Impala Platinum, the world’s second-largest platinum miner. KWAZULU-NATAL Business 2013/14 Table 1: GDP growth per quarter, 2003–2011. Source: Statistics South Africa Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP (R-m) 1 020 007 1 168 699 1 260 693 1 415 273 1 571 082 1 767 422 2 016 185 2 262 502 2 398 155 2 661 434 2 964 261 GDP per capita (R) 22 899 25 831 27 631 30 297 33 176 36 844 41 525 46 072 48 318 53 088 58 549 Table 2: GDP and GDP per capita at current prices, 1998–2009. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA 36 special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Construction (contractors) Wholesale and retail trade, catering and accommodation Transport, storage and communications Finance and insurance, real estate and business services Personal services General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices Source: statistics south africa Value in millions (R) 63 984 2 260 381 357 756 78 532 120 420 386 430 220 060 565 224 183 493 434 224 2 670 504 293 757 2 964 261 % Real change from 2010 -.04 0.2 2.4 1.3 0.8 4.4 3.3 3.5 2.4 3.9 3.0 4.4 3.1 % of GDP 2.2 8.8 12.1 2.6 4.1 13.0 7.4 19.1 6.2 14.6 90.1 9.9 100 Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. African Customs Union (non-SACU) trading partners in April 2012, after a deficit of R5.5-billion in March, taking the cumulative trade deficit in April 2011 to R36.5-billion, compared with R7.5-billion in the first four months of 2011. A record R17.4-billion deficit was set in January 2009, but as exports began to improve, so the deficits narrowed in 2009 to become surpluses in 2010. South Africa recorded its first annual trade surplus in seven years in 2010 of R4.8-billion, following a few stronger than expected surpluses on the trade account during the year. In 2012, however, the rise in the oil price in the first few months, coupled with a sharp reduction in platinum exports, saw the non-SACU foreign trade balance firmly in the red. The old myth that a weaker rand leads to more exports is once again disproved by the facts, as import growth was 23.5% in 2011, while export growth was 19.9% when the rand was weaker due to a R15-billion deficit. Prior to November 2011, when the rand had been stronger, export growth had exceeded import growth. In 2010, when the rand was strong because export growth of 14.9% exceeded import growth Trade: imports and exports South Africa’s international trade has risen sharply over the last 10 years (table 4). In 2004, the value of imports rose above that of exports. Tables 5 and 6 show the largest import and export sectors respectively, for April 2012. Important import sectors in April 2012 were machinery (R15.9-billion), mineral products – chiefly crude oil (R13-billion), transport equipment (R10.9-billion) and chemicals (R5.4-billion). On the export side, the most important sectors were mineral products, chiefly coal and iron ore (R14.8-billion), precious metals and diamonds (R10.2-billion), base metals (R7-billion) and transport equipment (R4.6-billion). Most of South Africa’s foreign trade takes place with Asia, the United States and Germany (tables 7 and 8). In 2011, China, the United States and Japan were, in descending order, the country’s top export markets, while top import-source countries were China, Germany and the US. South Africa recorded a trade deficit of R9.9-billion for its trade with non-Southern 37 KWZULU-NATAL Business 2013/14 special feature Year Imports in R-m 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 147 356 187 608 216 033 275 427 258 839 306 927 351 665 465 040 561 194 727 632 541 173 585 219 722 637 Exports in R-m 165 555 210 373 251 330 314 102 275 581 296 246 331 405 396 529 491 253 663 099 513 864 590 207 707 511 Sector 1. Machinery, mechanical and electrical 2. Mineral products 3. Transport equipment 4. Chemical products 5. Base metals 6. Plastics, rubber 7. Textiles 8. Optical, medical, photographic 9. Foodstuffs, beverages 10.Vegetable products Total Value in R-m 15 903 12 991 10 880 5 420 3 190 2 591 1 726 1 579 1 433 1 045 62 028 Table 4: Annual value of South African non-SACU imports and exports, 1998–2011. Source: www.sars.gov.za. Table 5: South Africa’s top 10 import sectors, April 2012. Source: www.sars.gov.za of 8.1%, there was a R4.8-billion surplus, the first annual surplus since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe (122), Ivory Coast (123), Kenya (105), Tanzania (97), Argentina (95) and India (84). Sector 1. Mineral products 2. Base metals 3. Vehicles, aircraft, vessels 4.Machinery, mechanical electrical 5. Chemical products 6. Vegetable products 7. Foodstuffs, beverages 8. Paper, pulp 9. Plastics, rubber 10. Animals, animal products Total Value in R-m 126 512 92 269 49 938 47 748 31 203 21 204 19 660 10 931 9 504 5 230 590 207 Foreign direct investment and public investment South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRICS (Brazil, Russia, India and China) countries in the upcoming 12 months, according to Grant Thornton’s 2011 International Business Report (IBR) on M&A activity. SA was invited to join the BRIC grouping in 2011. KWAZULU-NATAL Business 2013/14 Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za South Africa also fared well in a number of other indices. It was ranked 45th out of 133 on the World Economic Forum’s Global Competitiveness Index for 2009/10, and improved to 54 out of 139 countries in 2010/11. It was 32nd out of 181 countries in the World 38 special feature Bank and International Finance Corporation’s Doing Business 2009 report, and 34 out of 183 in 2010. This study measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was at number 35 in 2008. Public-sector infrastructure investment, the expansion of electricity generation and distribution capacity by electricity supplier Eskom, upgrades to ports and railways by state-owned enterprise Transnet, and major road-construction projects remain the major challenges for the economy, but government continues to invest strongly in all areas. The ratio of fixed capital investment to GDP rose consistently over the five years to the end of 2008, to reach 24.6%, just below the government’s target of 25%. A cut-back in both government and private-sector fixed investment saw the ratio drop to 18.9% in the fourth quarter of 2010, before starting a slow recovery. General government fixed investment had the first quarterly increase in the second quarter of 2011 after nine quarters of decline. Total fixed investment has now increased for eight consecutive quarters and should continue to support growth going forward. Consumer spending has been robust, even as households repaired their balance sheets. The last time household expenditure growth exceeded income growth on a q/q saa basis was back in the fourth quarter of 2007. The result of this, as well as a marked reduction in interest rates, was that the household debt to income ratio fell to 74.6% in the fourth quarter of 2011 from 75.6% in the third quarter of 2011 and a peak of 82.7% in the first quarter of 2008. The debt service ratio eased to 6.7% in the fourth quarter from 6.8% in the third quarter, and is now at levels last reached in 2005. Country 1. China 2. Germany 3. USA 4. Japan 5. Saudi Arabia 6. India 7. UK 8. Iran 9. Nigeria 10. Italy Value in R-m 103 174 77 396 56 944 34 377 32 294 29 220 28 965 27 121 22 655 19 574 Table 7: South Africa’s top 10 import source countries in 2011. Source: www.sars.gov.za Country 1. China 2. United States 3. Japan 4. Germany 5. UK 6. India 7. Switzerland 8. Netherlands 9. Zimbabwe 10. Mozambique Value in R-m 90 210 61 044 55 635 42 684 29 001 22 224 22 902 22 902 17 776 17 680 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 15.70 16.00 16.50 17.70 19.70 21.05 23.20 20.30 18.80 Q2 16.00 16.20 16.00 18.60 21.20 22.44 22.40 19.88 19.00 Q3 15.90 16.20 17.00 18.90 20.40 24.02 21.20 19.40 18.90 Q4 16.00 16.20 17.10 19.70 20.20 24.64 20.30 18.90 18.90 Table 8: South Africa’s top 10 export markets in 2010. Source: www.sars.gov.za Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za 39 KWZULU-NATAL Business 2013/14 Global Africa Network Promoting business, trade and investment in South Africa’s nine provinces www.gan.co.za Global Africa Network publishes a unique range of ofﬁcially endorsed business guides and complementary websites to South Africa’s nine provinces. To proﬁle your organisation in any of our publications, call us on +27 21 657 6200 or email firstname.lastname@example.org destination KWAZULU-NATAL A guide to business and leisure travel services, conferencing and accommoDation in KWAZULU-NATAL overview Tourism KwaZulu-Natal is developing strategies to grow its tourism numbers. sector insight A SADC Tour Operators Workshop is to be held in 2013. • The MSC Opera operated a full season of cruises out of Durban. • Tsogo Sun is amalgamating two prime beachfront hotels. • Umhlanga hotels report the best occupancy rates. major events’. As the long-term host of the national Tourism Indaba, Durban and KwaZuluNatal are well placed in the events market. The recent hosting of the United Nations COP17 conference, the International Olympics Congress and a conference for a federation of Indian travel agents all point to the province’s success in attracting big meetings. The hosting of a Southern African Development Community (SADC) Tour Operators Workshop in the second half of 2013 is an indication of the importance of the regional market for tourism in KwaZulu-Natal and South Africa. Of the 8.3-million international tourists who visited South Africa in 2012, 908 000 visited KwaZulu-Natal. According to the KwaZulu-Natal Department of Economic Development and Tourism (DEDT), direct spend- The province is blessed with incredible natural assets. he tourism sector contributes about 10% (direct and indirect) to the provincial GDP, with the hotel and accommodation subsector responsible on its own for about 1.1% of provincial GDP. The conference and events sector (covered in a separate article) is a major driver of growth in the tourism industry and the provincial government has developed a strategy to attract ‘strategic KWAZULU-NATAL Business 2013/14 T 42 overview Sibaya Casino and Entertainment Kingdom is only minutes from King Shaka International Airport. ing by these tourists amounted to R7.1-billion, compared to a figure of R6.2-billion in 2009. Statistics South Africa reported that arrivals in South Africa for the first six months of 2012 were 10.5% improved on the same period in 2011. Tourist arrivals from Asia reported the best growth, at 40.7%. KwaZulu-Natal’s recently established direct airlinks with Dubai via Emirates Airline boosted this trend. Indian arrivals also KZN buildings and beds in numbers photo: sun images Hotels: 241 Guesthouses: 324 Bed and breakfasts: 809 Beds within 80km of Durban CBD: 37 050 SOURCE: T our ism K wa Zulu-N atal Occasional Paper, March 2010. grew substantially in this period, with 21% more tourists arriving from that country than in the first six months of 2011. In terms of domestic tourism, KwaZulu-Natal continues to be a major attraction. Advertising at the Rand Easter Show in Gauteng is one of the reasons the province attracts as much as 27% of the internal market, with more than seven-million trips into KwaZulu-Natal recorded. The Mooi River Toll Plaza, on the main road between Gauteng and the attractions of the KwaZulu-Natal coast, recorded 15 500 vehicles per day in 2011. The Provincial Tourism Master Plan has set targets to the year 2030 that include the creation of 183 820 jobs and a contribution to GDP of R65.2-million. As part of a drive to diversify the tourism sector, several bodies are pushing for a new cruise-ship terminal to be in place in Durban by 2015. The Port of Durban envisages a 32 000m² area that would cater for two ships and at least 5 000 passengers. The number of cruise-ship passengers attracted to Durban grew from 42 000 in 2004/05 to 157 000 in 2010/11. The need for such a terminal was raised at the South African Cruise Ship Initiative in Durban in 2010 and again at the first Seatrade Africa Cruise Forum in Zimbali in May 2011. South Africa attracts 0.5% of the world’s cruise-ship market which comprises about 15.4-million passengers annually. The DEDT has recognised that the lack of dedicated terminal facilities detracts from the attractiveness of the province’s ports as cruise destinations, although the MSC Opera operated out of Durban for a full season of cruises to Mozambique between 43 KWAZULU-NATAL Business 2013/14 overview November 2012 and February 2013. This was preceded by two cruises between Durban and Cape Town. There are several routes in various parts of the province that take advantage of the region’s unique selling points. Many tourism operators cooperate with another, for example, in the N3 Gateway Tourism Association, which is a transprovincial initiative. With more than 2 500 associations, routes and co-operatives participating, the Gateway programme includes groups such as the Midlands Meander Association, the Grasslands Tourism Association, Mooi River Tourism and the uMngeni Footprint Route. Protea Hotels has 18 properties in the province, with seven in Durban including the Protea Hotel Edward. The Edward is one of three hotels in the province to be part of the refurbishment programme: the others are Protea Hotel Hilton and Protea Hotel Imperial in Pietermaritzburg. The upgrading of the Point area between the beach and Hotels the Port of Durban near the entrance to the harbour has Although South Africa experienced a big spike in incoming tourist resulted in major investments. numbers in the World Cup year, hotel occupancies declined again The Docklands Hotel at the in 2011. Research by Tourism KwaZulu-Natal (TKZN) shows that Durban Waterfront is a fourthe coastal province consistently has the best hotel occupancies star Signature development in the country. that cost about R100-million to National averages rose for seven consecutive months to Febru- develop. The Quays on Timeary 2012, with Durban and its surrounding areas recording 48.7%. ball Square offers luxury apart(South African Hotel Review Report). The province’s best perform- ments and six penthouses in a ing area was Umhlanga, with average occupancy rates of 57.5%. canal setting with views of the Tsogo Sun runs 14 hotels in KwaZulu-Natal, five of which are Atlantic Ocean. Garden Courts. Six hotels are located in Durban with a further The iconic Royal Hotel in four in nearby Umhlanga, where one of the group’s most luxurious the heart of Durban is one of hotels, the 89-room Beverly Hills, is located. eight Three Cities Group hoA new ‘mega-hotel’ is to be created by Tsogo Sun, with the tels in the province. The Golden amalgamation of the Southern Sun North Beach and Southern Horse Casino Hotel is a Three Sun Elangeni hotels. With 734 rooms, the Southern Sun Elangeni Cities property, and the Group & Maharani will boast the most accommodation in the province. administers the International Hotel School in Westville that It will also have nine restaurants and bars. Protea Hotel Hospitality Group announced in 2011 that the is also home to the Chrisgroup had set up a fund to buy distressed hotels. Protea already tine Martin School of Food has more hotel beds in South Africa than any other group and and Wine. IFA Hotels & Resorts runs by 2012 had spent about R1.5-billion on upgrades to hotels in several luxury properties inits portfolio. cluding the Zimbali Coastal Resort and Zimbali Lakes Resort. Signature Life Hotels has 13 properties ranging from uShaka Marine World: 297 000 admissions (3% increase) Tala Game Reserve in its lodge Actual uShaka restaurant bookings against projections: 102% portfolio to five Signature HoSuncoast Casino, Hotel & Entertainment: 965 173 visitors tels. Gooderson Leisure has a Suncoast Towers and SunSquare Suncoast Hotel: 83.46% varied portfolio, including the occupancy (2.5% increase) Tropicana and Beach hotels SOURCE: www.durbanexperience.co.za in Durban, lodges in Hluhluwe Durban in December 2012 KWAZULU-NATAL Business 2013/14 44 overview and the Drakensberg Gardens Golf & Spa Resort. 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) has 1 330 slot machines, 12 restaurants and eight cinemas. In 2011/12, casino gaming tax revenue amounted to R249-million for the provincial government. The popular Battlefields Route offers visitors insights into the major historical conflicts that occured in the region. • • Assets • KwaZulu-Natal is blessed with an abundance of tourism assets: Natural assets • reserves controlled by the provincial authority. The province is also famous for its luxurious private game reserves and lodges that offer unique viewings of black rhino. Varied landscapes. The rolling hills that Alan Paton made so famous in Cry, the Beloved Country contrast with the coastal plains, the sheer walls of basalt that make up the Drakensberg in the east and the volcanic Lebombo mountain range in the north. Indian Ocean. The warm current allows for year-round swimming and brings with it the great Sardine Run that excites fishers all along the coast every year. Climate. Along the coast the climate ranges from mild tropical in the south to fully tropical in the north. It can get very humid in the north while the interior regions are cooler. The high-lying interior parts get snow in winter. • Great beaches along the entire coastline of the province, from the popular South Coast, through the perfect surfing spots in Durban to the wetlands in the north. Magnificent state and private game parks. Both the iSimangaliso Wetland and the uKhahlamba Drakensberg Park are World Heritage Sites. The province has six Ramsar wetlands and more than 100 nature Cultural assets • • • The Zulu kingdom. The province’s tourist authority has branded KwaZulu-Natal as the ‘Zulu Kingdom’ and even uses the word ‘zulu’ in its web address. King Shaka Day is celebrated in September with an impressive ceremony and draws many tourists. Important sites include the eMakhosini Heritage Park, Ulundi and Nongoma, where the current Zulu king resides. Freedom route. A route has been organised that celebrates great characters who fought for freedom including Chief Albert Luthuli, Mahatma Gandhi, Dr John Dube and Alan Paton. Battlefields. KwaZulu-Natal was the site of several of the most important battles in the wars that created the country now known as South Africa. The Battlefields Route is one of the most successful tourism initiatives in South Africa, catering to thousands of local and foreign enthusiasts and providing photo: South african Tourism 45 KWAZULU-NATAL Business 2013/14 overview The luxurious MSC Opera regularly cruises between Durban, Cape Town and Mozambique. • • much-needed employment in the north of the province. Indian culture. Indian temples in Durban and on the North Coast provide superb architecture to admire while there are several sites, particularly around Pietermaritzburg, where Mahatma Gandhi’s stay in South Africa can be analysed. The Ink Writers’ Trail incorporates the likes of Rider Haggard (Isandlwana), Gcina Mhlope (Zululand), Alan Paton (Maritzburg College), Lewis Nkosi (Durban beachfront) and Imran Coovadia (Grey Street). • online resources Amafa/Heritage KwaZulu-Natal: www.emakhosini.co.za Ezemvelo KZN Wildlife: www.kznwildlife.com Hotel Investment Conference Africa: www.hica.co.za KwaZulu-Natal Tourism Authority: www.zulu.org.za KZN Department of Arts & Culture: www.kzndac.gov.za KZN Department of Economic Development and Tourism: www.kznded.gov.za KZN Gambling Board: www.kzngambling.co.za KZN Literary Tourism: www.literarytourism.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net South Africa ‘the official gateway’: www.safrica.info • KWAZULU-NATAL Business 2013/14 46 photo: morgue file Centre for Creative Arts. This University of KwaZuluNatal organisation is responsible for several major events on the province’s cultural calendar. The Durban International Film Festival (DIFF) is a flagship project while the Time of the Writer, Jomba! Contemporary Dance Experience and Poetry Africa are all exciting events that fill the Elizabeth Snedden Theatre with creative energy. Hilton Arts Festival. One of South Africa’s biggest and longest-running arts festivals regularly sells more than 14 000 performance tickets. The IDC is the biggest supporter of tenders awarded in the Department of Energyâ€™s Renewable Energy Independent Power Producers (REIPP) programme. Over the next five years, the IDC will make available R25 billion to fund projects related to green industries. The IDC is identifying and providing funding for many projects In the first round of REIPP tenders, the IDC participated in twelve successful bids, and seven more in the second round. The green energy bids include wind power, concentrated solar power, photovoltaic and small hydro projects. that will contribute to building South Africaâ€™s industrial capacity and creating jobs. Visit www.idc.co.za to find out more. The power behind renewable energy Chillibush8053IDC Telephone: 086 069 3888 Email: email@example.com To apply online for funding of R1 million or more go to www.idc.co.za overview Events and conference facilities KwaZulu-Natal is positioning itself as a leader in the hosting of major events. sector insight A 2012 survey found that Durban’s conference business is leading the province’s growing tourism sector. • Vodacom will sponsor the Durban July horse race for three more years. • A federation of Indian travel agents met in KwaZulu-Natal in 2013. Year attracted thousands of festive families. Among the conferences hosted in KwaZulu-Natal, the gathering of the Travel Agents Federation of India (TAFI) in February 2013 was significant. The convention, hosted in conjunction with the Southern Africa Tourism Services Association (SATSA), gave KwaZulu-Natal operators a chance to show off their wares to travel professionals from a fast-growing market. Mike Mabuyakhulu, MEC for Economic Development and Tourism, highlighted in his 2012 budget address the fact that Emirates Airlines has added bigger aircraft to its DurbanDubai route, to accommodate ‘the increasing number of passengers travelling between KwaZulu-Natal and Asia’. Another major industry conference held in the province is the Tourism Indaba, which The Imbizo Conference Centre north of Durban can accommodate up to 1 500 guests. K waZulu-Natal, already strong in the sector known as MICE (meetings, incentives, conferences and events), intends becoming a national and regional leader. A Global Destination Cities Index, put together by MasterCard in 2012, reported that business was the main reason for visits to Durban. It also found that it was likely to be the African city to grow its tourist market the most in visitor numbers and expenditure in the short term (Business Day). The size of the International Convention Centre (ICC) Durban is cited in the study as the main attraction for conferences and exhibitions – its ‘flat-floor, column-free’ space is the largest in Africa. With the goal of boosting tourism numbers, encouraging inward investment and boosting employment, the KwaZulu-Natal Department of Economic Development and Tourism (DEDT) announced in 2012 a slew of new events to be held in the region: • British television car show Top Gear • World Rally Championship • North Sea Jazz Festival • MTV Africa Music Awards Durban Tourism reported that the 2012 holiday season was excellent for music concerts and events: the Chris Brown concert and the Durban Jazz Festival both played to huge crowds in December, and the uMgababa Picnic that heralded the New KWAZULU-NATAL Business 2013/14 48 photo: sun images overview Events and festivals Sporting events make a major contribution to the KwaZulu-Natal provincial economy. The famous Comrades Marathon between Durban and Pietermaritzburg attracts more than 10 000 runners and is preceded by a multi-day Comrades Expo. According to a Repucom international survey, the race injects a total of R300-million into the provincial economy. The Durban July is the country’s premier horse-racing event. Some 55 000 spectators spend about R85-million before and during the event. Vodacom signed a three-year extension to its primary sponsorship of the event in 2012, and the prizemoney on offer was raised by race operator Gold Circle to R3.5-million. The Dusi Canoe Marathon brings an estimated R30-million into the economy. World points and great surfing conditions will continue to be the main drawcards for the world’s top surfers, with the R1.9-million Mr Price Pro Ballito confirmed at that venue until 2014 due to a deal signed by the KwaDukuza Municipality and the Association of Surfing Professionals (ASP). Major cycling events have recently been hosted in the Pietermaritzburg area: the BMX World Championships and the World’s View Challenge of the International Cycling Federation. The Sharks rugby franchise has a fanatical following and soccer matches regularly draw big crowds to the sporting precinct just north of Durban’s CBD. Soccer followers turn up in large numbers whenever one of South Africa’s professional giants schedules one of their games at the impressive Moses Mabhida Stadium, which hosted several Africa Cup of Nations games in the 2013 tournament. Annual festivals such as the Royal Show (about 150 000 visitors attend this 10-day event in Pietermaritzburg) and the Splashy Fen Music Festival in the Drakensburg are typical of popular events that help to boost local and regional economies. The Comrades Marathon brings in about R300-million. attracted 12 000 delegates and exhibitors in 2012. The 2011 Indaba injected about R250-million into the provincial economy. The 2012 Hotel Investment Conference Africa was held as part of the Indaba, and proved a great success, with a television tie-up with CNBC Africa highlighting investment opportunities in the hotel sector. Loc alitie s outside of Durban offer great variety: the Royal Showgrounds in Pietermaritzburg hosts up to 50 functions per month, the Cathedral Peak Hotel has 94 hotel rooms to support its conference venue in a mountainous setting, Tala Private Game Reserve offers wedding guests or delegates the chance to relax in 5 000 acres of natural beauty, and the Imbizo Conference Centre north of Durban can accommodate 1 500 conference-goers. online resources Comrades Marathon: www.comrades.com Durban Tourism: www.durbanexperience.co.za Dusi Canoe Race: www.dusi.co.za International Congress and Convention Association: www.iccaworld.com International Convention Centre Durban: www.icc.co.za Sani2c: www.sani2c.co.za Splashy Fen: www.splashyfen.co.za Trade and Investment KwaZulu-Natal: www.tikzn.co.za 49 KWAZULU-NATAL Business 2013/14 contents key sectors Overview of the main economic sectors of the KwaZulu-Natal Province Tourism42 Events and conference facilities Forestry and paper Oil and gas Mineral beneficiation 48 56 60 68 Agriculture52 Sugar58 Mining66 Manufacturing69 Automotive70 Chemicals and plastics Food and beverages 72 73 Engineering74 Transport80 Construction and property 93 Energy100 Water102 Telecommunications104 Business organisations Banking and financial services 112 108 Development finance and SMME support113 Education and training Business support services National Government KwaZulu-Natal Local Government 124 126 132 144 KwaZulu-Natal Provincial Government 142 KWAZULU-NATAL Business 2013/14 overview Agriculture KwaZulu-Natal is promoting agri-processing. sector insight A first small-scale maize mill has begun operations in Riverhorse Valley. • A Midlands poultry producer is using worms as chicken feed. • A new winery has been built near Ballito. plants. The first of these was opened in Riverhorse Valley in December 2012 by Kuvusa Mills, and forms part of the National Department of Trade and Industry’s small-scale maizemilling initiative. Eighteen percent of KwaZulu-Natal’s 6.5-million hectares of agricultural land is arThe province is home to a thriving dairy sector, and produces 18% able and the balance is suitable of South Africa’s milk. for the rearing of livestock. Vegetables also grow well in waZulu-Natal is a fertile province with diverse landscapes most areas, and some maize is and micro-climates that lend themselves to a wide variety grown in the north-west. Nuts of crop production and types of animal husbandry. Two such as pecan and macadamia of the most important sectors within agriculture – sugar thrive. Dairy cattle are found and forestry – have sections of their own in this publication. in large numbers in the MidEnterprise ILembe, the development arm of the ILembe District lands, with beef farming takMunicipality, is looking for investors to further develop an agri- ing place mostly further north. processing hub that is taking shape near the King Shaka Inter- The province’s forests occur national Airport and Dube TradePort. Hydroponic greenhouses, mostly in the southern and plant nurseries, and processing and packaging facilities have northern extremities. TWK is a R6-billion operabeen built with the support of the KwaZulu-Natal Department of tion that originated in forestry Co-operative Governance and Traditional Affairs. KwaZulu-Natal has a large number of food and beverage (as Transvaal Wattlegrowers producers, but there are countless opportunities that still remain Co-operative) but which is now in the agri-processing sector. One initiative that will simultane- a diverse agricultural company ously broaden entry into the field is the promotion of small milling with seven operating divisions. KWAZULU-NATAL Business 2013/14 K 52 overview It has 19 trade outlets in the province and 21 in Swaziland and Mpumalanga. The coastal areas lend themselves to sugar production and fruit growing, with subtropical fruits doing particularly well in the north. KwaZulu-Natal produces 7% of South Africa’s citrus fruit. The Coastal Farmers Co-operative represents 1 400 farmers. 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. Clover, Africa’s largest milk processor, was founded in the town of Mooi River. The company now has a turnover of R6-billion and a staff of more than 6 500. The Orange Grove Dairy Farm near Dundee has one of the biggest pedigree Jersey herds in the country. 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. The headquarters of Rainbow Chickens, producers of more than four-million chickens per week, is in Westville. A Midlands poultry producer was reported by Business Day in 2012 to be feeding his chickens worms in an attempt to battle rising chicken-feed prices. Feed in Pietermaritzburg was 38% more expensive in September 2012 than a year before. A new bulk specialist agricultural warehouse at the Agriport in the Port of Durban will handle about 500 000 tons of cargo in the early stages. The warehouse covers an area of 80 000 square metres in the Maydon Wharf. KwaZulu-Natal has two colleges offering higher qualifications in agriculture, Cedara in the Midlands and the Owen Sitole College of Agriculture near Empangeni. Emerging farmers Massmart, the retail group that has been bought by US giant Walmart, will invest R15-million to 2017 in creating opportunities in its food chain for emerging farmers. TechnoServe, a nongovernmental organisation, will oversee the programme. The National Department of Agriculture, Forestry and Fisheries (DAFF) has budgeted R4-billion to the task of getting emerging farmers into the mainstream economy, hoping to turn them into commercial farmers in due course. Help is offered with mechanisation, establishing fresh-produce markets and processing facilities, and gaining better access to markets. Another project in the ILembe District entails the planting of 40 hectares of Villard Blanc grapes as an alternative or supplementary crop to sugar cane. The first harvest took place in February 2013 and the idea is to get emerging farmers to provide grapes to the ILembe Winery that has been built at Collisheen Estate near Ballito. About 50 jobs have been created so far. The Abingdon Wine Estate in the Midlands has been producing wines since 2007. online resources Citrus Growers’ Association: www.cga.co.za Coastal Farmers Co-operative: www.coastals.co.za Dry Beans Producers’ Organisation: www.beans.co.za Fresh Produce Exporters Forum: www.fpef.co.za KwaZulu-Natal Agricultural Union: www.kwanalu.co.za KwaZulu Natal Department of Agriculture: www.agriculture.kzntl.gov.za Milk Producers Organisation: www.mpo.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za Royal Agricultural Society of Natal: www.royalshow.co.za SA Fruit Farms: www.safruitfarms.com 53 KWAZULU-NATAL Business 2013/14 FREE MEMBERSHIP OF THE Business Banking Enterprise Development FRONTIER MARKET NETWORK Frontier Market Network is the largest online business community focused on investment and business generation in fast-growing markets. 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GET CONNECTED. JOIN TODAY. Absa Bank Limited Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7 www.frontiermarketnetwork.com profile Agribusiness Development Agency Agribusiness Development Agency is a public entity that was established to serve as a Special Purpose Vehicle to drive socioeconomic transformation in the agribusiness sector in KwaZulu-Natal. The Agribusiness Development Agency (ADA) provides holistic support services to entrant Black commercial farmers commercial farmers, focusing mainly on previously disadvantaged farmers who have acquired land through the government’s Land Reform Year established: 2010 Programme or on a private basis. No of staff: 33 The agency also aims to develop strategies to Major clients: Black commercial farmers address inequalities and foster sustainability in the agribusiness sector. Target markets Key facts and figures BEE status Vision A vibrant and sustainable agribusiness sector in KwaZulu-Natal Province. % black ownership: Government owned % black directors: 80% Board of trustees % black staff: 80% Mission To lead and manage the delivery of appropriate services to enable previously disadvantaged farmers to achieve sustainable success in the agribusiness sector through partnerships and knowledge. contact info Key contact people: Robson Zimuto, Chief Executive Officer Thulasizwe Mkhabela, Chief Operations Officer Fidzani Nduna, Chief Financial Officer Fezile Mbuli, Legal and Corporate Services Mpume Mpanza, Marketing and Communications Phumla Vilakazi, Planning, Monitoring and Evaluation Tel: +27 33 347 8600 Fax: +27 33 347 0913 Email: email@example.com Physical address: 5 Cascades Crescent, Cascades Office Park, Montrose, Pietermaritzburg 3202, KwaZulu-Natal Postal address: Private Bag x01, Cascades, Pietermaritzburg 3202 Website: www.ada-kzn.co.za Description of services The core of ADA is the following key services and programmes: • Capacity building, skills development and mentorship • On-and-off infrastructure and input support • Leverage funding and partnerships • Enterprise and value-chain development • Technical support 55 KWAZULU-NATAL Business 2013/14 overview Forestry and paper KwaZulu-Natal has extensive production capacity. sector insight Mpact is growing paper revenue by replacing imports. • Sappi is restructuring. • Norwood’s portable sawmills are now available in South Africa. operation, which includes the closing of a paper plant in the Eastern Cape. Although local demand is dwindling, the export market for pulp and paper from South Africa remains strong. Norwood’s portable sawmills will be available in South Africa in 2013. M pact, the paper manufacturing and plastics packager that was spun out of Mondi, reported excellent results at the end of its first full year of trading on the JSE in December 2012. Revenue increased across all sections of the business, with paper volumes boosted by some replacement of imports and by increased fruit-packaging volumes. Overall revenue was R6.8-billion. Growing imports have been identified by the Paper Manufacturers of South Africa (PAMSA) as a ‘grave concern’ to the industry, so Mpact’s success in replacing imports is to be welcomed. PAMSA reports that imports grew by an average of 3.5% every year between 2006 and 2011. Imports, weighted towards paper products, cost the country R9.8-billion annually. KwaZulu-Natal is a national leader in the forestry and paper sector. The forest-product export sector in South Africa is made up of paper (45.2%), solid wood (23.3%) and pulp (28.9%). Pulp and paper made up 12% of KwaZulu-Natal’s exports in 2009. Mondi and Sappi are both large international companies and both have long-standing ties with KwaZulu-Natal. Sappi Southern Africa currently contributes a quarter of the group’s sales. In 2010, the pulp and paper sector made a direct contribution to South Africa’s balance of payments of R4.5-billion, largely due to Sappi’s cellulose operations. Sappi is restructuring its South African KWAZULU-NATAL Business 2013/14 Timber High concentrations of timber plantations are found in five regions: northern KwaZuluNatal, Midlands, southern KwaZulu-Natal, Zululand and Maputaland. Close to half a million hectares – 38.5% of the land in the province – 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. Mondi 56 photo: austro south africa overview has 220 000 plantation hec- 15% 10% tares on 330 000 hectares of 5% land, while Sappi manages and 0% owns about 230 000 hectares. -5% The South African forestry PRINTING & WRITING -25 industry is valued at R40-billion -10% PACKAGING 4 -15% per year. The National DepartTISSUE 14 ment of Agriculture, Forestry -20% PULP 5 -25% and Fisheries reports that South Africa has a shortage of Increases/decreases in South African paper production since 2006. sawn timber and that this prob- SOURCE: PAMSA lem is set to get worse. Labour writer and researchThe Sappi mill at KwaDukuza produces 110 000 tons of paper er Terry Bell reports that 82% and 60 000 tons of pulp annually, and is the only producer of of the forestry workforce on the coated graphic paper in the country. Its Tugela Mill, at Mandeni, 17 largest operations (36 025 is the only one in the country to manufacture high-performance employees) are employed on containerboard packaging, while the Sappi mill at Stanger procontract through labour bro- duces 110 000 tons per annum of fibreboard, speciality paper kers (Business Times). With and tissue paper. The Southern African operations of Sappi are a further 5% on fixed-term a net seller of pulp which serves to hedge the purchase of pulp contracts, Bell believes this by the European division. could lead to the sort of upNampak produces crêpe paper at Verulam and Rafalo proheavals experienced in the fruit- duces tissue paper. SA Paper Mills is another paper producer. farming sector. The Merensky Group operates one softwood sawmill and a panel-processing plant in Kokstad that is geared to manufacture according to customers’ needs in any sector. Export is done Processing and through the Port of Durban. production NCT Forestry Co-op Limited is a key timber-marketing entity with more than 2 000 members and three wood-chipping mills. KwaZulu-Natal is a major R&B Timber Group has three pole treatment plants and is headcentre for the beneficiation of quartered in Harding. Flaxton Timbers operates out of Ixopo and timber products, with more Natal Forest Products is in Richmond. Norwood Sawmills and the Austro Group announced a partnerthan half the country’s timber coming from the province. ship to sell Norwood’s portable sawmills in South Africa in 2013. The country’s largest hardboard plant is at Estcourt and online resources South Africa’s only woodchip export plants are located at Forestry South Africa: www.forestry.co.za Richards Bay. KwaZulu-Natal Department of Agriculture and Environmental Mondi’s Richards Bay faciliAffairs: www.kzndae.gov.za ties produce pulp, linerboard National Department of Agriculture, Forestry and Fisheries: and wood chips and its paper www.daff.gov.za mill at Merebank, south of DurPaper Manufacturers of South Africa: www.thepaperstory.co.za ban, has a capacity of 600 tons South African Institute of Forestry: www.saif.org.za Technical Association of the Pulp and Paper Industry of South per day. It produces 400 000 Africa: www.tappsa.co.za tons of uncoated, wood-free paper per year. 57 KWAZULU-NATAL Business 2013/14 overview Sugar Production and profits are growing in the sugar sector. sector insight Tongaat Hulett and Illovo improved headline earnings by about 30%. • Operation Vuselela is delivering new cane fields. but the industry has a strong infrastructure, particularly in KwaZulu-Natal, the province where most of the country’s sugar is grown, crushed and processed. Mpumalanga Sezela Sugar Mill is the oldest sugar mill in South Africa. is the other province with significant capacity. nnual sugar production volumes are on the up again, after In the six months to several years of decline because of drought and rising September 2012, both of costs. Analysts suggest that the 2012/13 crop will be close the country’s sugar giants, to two-million tons, a figure that would have been even Tongaat Hulett and Illovo, rehigher had it not been for unseasonal rain and a truck-drivers’ strike. ported massive increases in The sugar contributes about R8-billion in direct income to the headline earnings. Tongaat national economy. This is according to the South African Sugar Hulett increased 30% to Association (SASA), which further estimates that the industry em- R654-million a nd Illovo ploys about 79 000 people directly, with a further one-million people earned R377-million over the being dependent on the industry for a living. same time period, an increase Fluctuating weather conditions in recent seasons have con- of 29%. tributed to overall South African production of sugar declining, Neither company relies exclusively on South African sugar earnings: Tongaat Hulett has Year Tons produced in SA a big property portfolio and 2008/09 2 260 244 Illovo draws most of its profit from operations elsewhere in 2009/10 2 178 543 Africa. Tongaat’s South African 2010/11 1 909 236 sugar operations made a profit 2011/12 1 822 488 of R221-million. South Africa has about Saleable sugar production 38 200 sugar-cane growers SOURCE: SA Cane Growers’ Association. who produce about 20-million KWAZULU-NATAL Business 2013/14 A 58 overview tons of cane. About 40% of executive of Tongaat Hulett, Peter Staude, told investors in May local production is exported. 2012 that his company was very upbeat about ‘good progress The biggest challenge to made across all sugar operations to drive growth in future cane South Africa’s sugar industry supply’ (Business Day). With the company losing thousands of is the huge subsidies avail- hectares to construction projects, an independent growers’ proable to sugar producers in gramme – Operation Vuselela – was introduced to take up the the northern hemisphere. In slack and create jobs. addition to this, the countries of the Southern African Development Communit y Facilities have not successfully bargained with Europe as a unit, Three mills in Zululand cater for 4.2-million tons, three North Coast with the result that individual mills take care of 3.2-million tons, the three Midlands facilities countries have gained pref- crush 3.5-million tons and the South Coast’s two mills handle erential rights. This does not 3.2-million tons. include South Africa. Illovo and Tongaat Hulett are the major operators of sugar mills. Twelve of South Africa’s 14 mills are located in KwaZuluNatal. Each of these companies operates one mill in the province: Small growers Gledhow, ULC, Umfolozi and TSB (which has a further two mills in Mpumalanga). Despite government and indusIllovo has four mills, three sugar-cane estates, four sugar factry efforts to promote small sug- tories, a refinery and three downstream operations that make ar-cane growers, many of these products such as furfural, furfuryl alcohol, ethyl alcohol and small-scale farmers are finding lactulose. In 2009, Illovo sold its Pongola mill in northern KwaZuluconditions difficult. Government Natal to TSB Sugar. hopes to have 30% of sugarThe four mills run by Tongaat Hulett are located on the North cane land in the hands of previ- Coast while the central refinery is in Durban and the animal feed ously disadvantaged people by plant, Voermol, is near Tongaat. 2014. Between 2007 and 2008, The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills there was a 10% decrease in and can store more than half-a-million tons of sugar. It also has the number of sugar producers a molasses-mixing plant. on tribal lands. The South African Sugar Association has offices, research labIn the 2000/01 season, oratories and sugar-cane testing facilities at Mount Edgecombe. farmers in the Umfolozi district Various divisions of SASA are housed in a building called Kwaproduced more than 400 000 Shukela, as are the following organisations: the SA Cane Growers’ tons of cane: by 2008/09, that Association, the SA Sugar Millers’ Association, the National figure had dropped to 142 846 Bargaining Council for Sugar, Grocane Fire Insurance, and TSB tons. Poor rainfall and high in- Sugar (Durban office). put costs threaten the viability of many small farms, which online resources are often located on land controlled by tribal authorities. The South African Cane Growers’ Association: average size of a small farm is www.sacanegrowers.co.za 4.74 hectares. South African Sugar Association: www.sasa.org.za But outgrowers are apparSouth African Sugar Technologists Association: www.sasta.co.za ently better at creating jobs than Sugar Milling Research Institute: www.smri.org the large companies. The chief 59 KWAZULU-NATAL Business 2013/14 overview Oil and gas KwaZulu-Natal is a national leader in the oil and gas industry. sector insight Afrox is spending half-a-billion rand on new headquarters. • ExxonMobil is searching for offshore gas with Impact Oil & Gas. • Transnet Pipelines reported revenues of R2.1-billion in 2012. • Vopak is building a storage terminal at Heidelberg. • Sapref Refinery is upgrading to newer, greener technologies. A such as jet fuel, sulphur diesel and both kinds of octane petrol will be carried. Transnet’s Market Demand Strategy will spend an additional R7.5-billion over seven years to expand capacity. In 2010/11, the NMMP carried 18 billion litres (bl), and in 2011/12 a total of 16.7bl. A volume of 17.7bl is projected for 2012/13. The liquid fuels and gas networks of Transnet Pipelines traverses KwaZulu-Natal from Pipelines west to east and north to south. The petroleum network has inThe first litres of diesel fuel ran along Transnet Pipelines’ 24-inch take stations at both Durban renew multi-product pipeline (NMPP) in January 2012, launching fineries, while the gas pipeline a new era for the transportation of fuels to the highveld. The old runs from Secunda to Durban, pipeline was inaugurated in 1965. The 16-inch network was with diversions to the manufacturing hubs of Newcastle launched in May 2011. The first phase of the NMPP will be fully functionally by and Richards Bay, and along December 2013, with the completion of two terminals. The ter- the coast between Durban and minals will allow for greater flexibility in supply. Refined products Empangeni. …Continued on pg 62 s the home of two major oil refineries, and the first link in the pipeline chain that links the industrial heartland of South Africa with vital fuel, KwaZulu-Natal plays a key role in the country’s oil and gas industry. Royal Vopak, which runs a large terminal at the Port of Durban, is 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. There is increased interest in gas exploration off the coast of the province. In 2013, ExxonMobil Exploration and Production South Africa Limited (EMEPSAL) teamed up with Impact Oil & Gas to explore the latter’s Tugela South exploration rights. KWAZULU-NATAL Business 2013/14 60 overview Transnet Pipelines employs 658 staff, with about 200 located at the head office in Anton Lembede Street in downtown Durban. 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 third-highest consumption of petrol (15.4%). Petroleum KwaZulu-Natal’s two oil refineries produce large volumes of a wide range of products. They 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. The Port of Durban handles 80% of fuel imports. BP, one of the joint operators of the Sapref refinery located south of Durban, spent R1.4-billion on energy infrastructure in South Africa in the period to 2013. 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 propylene feedstock, solvents, sulphur, asphalt, industrial-processing oils and liquefied petroleum gas. Sapref has started a ‘cleanfuels’ 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. Gas and exploration The exploration rights to a large expanse of water off the KwaZulu-Natal coast, Tugela Permit, has been acquired by Impact Oil & Gas, which has signed an agreement with ExxonMobil Exploration and Production SA Ltd. The right covers approximately 4 720km². 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. Plants in Durban, Pietermaritzburg and Richards Bay produce a variety of industrial, household and medical gases. End products include acetylene welding products and compressedoxygen cylinders. Air Liquide will spend R100-million on expanding its liquid-nitrogen plant in Richards Bay, and Afrox has budgeted R500-million for moving its headquarters to an 111 000m² site at Cornubia Industrial Estate near Umhlanga. Operations will be moved from the Port of Durban, Pinetown and Seaview. The new plant will be expected to fill 5 000 cylinders every day. online resources National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency SA: www.petroleumagencysa.com South African National Energy Association: www.sanea.org.za South African Petroleum Industry Association: www.sapia.co.za Transnet Pipelines: www.transnetpipelines.net KWAZULU-NATAL Business 2013/14 62 interview Leading by example Sharla Pillay, Chief Executive Officer of Transnet Pipelines, describes the future of the company, and highlights some new developments. What was your goal when leaving school? I wanted to study medicine, but my elder brother who was studying towards a medical degree convinced me otherwise. He said I had a flair for accounting. Sharla Pillay How was the environment for you as a woman in the accounting field? During my article years and years post articles, there were limited opportunities for women. Even when I joined Deloitte there was a lack of female partners. I only started seeing a significant change in commerce and industry in the last three years. Was it useful to work for a private firm while gaining your articles? The learning and development I underwent at Deloitte was incredible. I got international exposure by working in the Houston office. Some of the major clients I was exposed to in Houston were in the oil and gas industry. That experience was invaluable. biography Sharla Pillay is the Chief Executive Officer of Transnet Pipelines. She attended the University of KwaZulu-Natal in Pietermaritzburg for her undergraduate and honours degrees in Accounting. She served her articles with Deloitte in Durban and this experience included a stint in the Houston office of the firm in the US. Sharla joined Transnet in 2003 in the corporate finance office of Port Terminals as an accountant. Since then she has held several senior positions within the two large Transnet divisions that operate in Durban. Are there advantages for a CEO in being a Chartered Accountant? Definitely. Everything I do today is underpinned by my CA background. It has provided me with the foundation or building blocks to think strategically, demonstrate effective leadership and ensure the division is well governed and geared for growth. What is in the future for Transnet Pipelines (TPL)? Our new strategic direction is to diversify revenue streams. This will include exploring opportunities such as transfer of technical skills in Africa and even operating and maintaining pipelines in Africa. In addition, Transnet Pipelines will be looking at the end-to-end supply chain and not just the pipeline components to improve supply-chain effectiveness and ultimately get more volumes in the pipeline. This will ultimately reduce the cost of doing business in South Africa. We will be working in an integrated manner with our sister division Transnet Freight Rail to deliver freight reliably. We are also exploring opportunities to operate depots that are not owned by Transnet. KWAZULU-NATAL Business 2013/14 64 interview So maintaining the country’s pipelines is not your only business? The more product we get into the pipe the lower the cost of doing business in the country. First preference is pipe, then rail, then road. We need to maximise the use of our assets. The pipeline is logistically the cheaper and more reliable option and is also environmentally friendly. Tell us about progress on the New MultiProduct Pipeline (NMPP)? To date we have spent R16-billion on the pipeline. The trunkline came into operation in January 2012 and only transports diesel until the completion of the terminals. Thereafter, the trunkline will operate as a multi-products line. In 2013, we will spend R2.5-billion. The first phase ends in December 2013 with completion of the two It seems that there is something of an terminals, provided the weather delays don’t imentrepreneurial spirit in Transnet at the pact us significantly. These terminals (inland and moment? coastal) will have three days of stock, allowing for Yes, I think everyone is excited about the Market flexibility in the system. Our main goal as TPL is Demand Strategy (MDS) and just knowing that ensure that we maximise the use of the NMPP you contribute towards the economy of the coun- by shifting product from road to pipe, which will try makes people perform their job as if it were result in lower tariffs and provide a safe, efficient their own business. Transnet’s MDS supports and environmentally friendly service. significant volume growth, infrastructure development of rail, ports and pipelines, and regional I have heard that you use pigs to maintain the pipeline. Please tell us more! integration beyond the normal operations. You are not waiting for head office to make all the decisions? The Pipeline Inspection Gauge commonly referred to as a ‘pig’ is used to inspect, monitor and evaluate activities in the pipelines. There No, but I have their support. Each division has are different types of ‘pigs’ used by TPL. The an opportunity to craft their corporate plan that ‘Intelligent Pig’ is one component of pipeline inconsolidates into a Transnet Corporate Plan. This tegrity monitoring that forms part of TPL’s stratecorporate plan covers the strategic direction of gic maintenance plan. The Intelligent Pig is able each division aligned to the Transnet Strategy. to detect internal and external corrosion and has The plan is approved by our shareholder, the the technology to detect defects and anomalies Department of Public Enterprises, and has the in the wall of the pipeline. These imperfections full support of the Transnet Board and Transnet in the pipeline are then repaired to return the pipelines to their original standards. Executive Committee. Have your senior managers bought into the Market Demand Strategy? Yes, everybody is excited about it. They are also a bit nervous because of the economic downturn. Transnet’s MDS will provide infrastructure ahead of demand to reduce the cost of doing business in South Africa and will also contribute to the objectives of the country’s developmental and transformation agenda. The economic downturn has impacted Transnet’s volumes negatively but we will still plough ahead with our capital investment programme as we are confident investing through this economic cycle will benefit the company and the country in the longer term. Have lessons been learnt on the cost overruns that occurred with the NMPP? Lessons have definitely been learnt in terms of our contracting strategies and our governance rules. Transnet did not have the in-house skills for engineering, procurement and construction management (EPCM), which is predominately outsourced for major projects. Transnet Capital Projects has now taken over the EPCM role for the NMPP, and we will continue to grow our skills in this area. There is increased oversight on the project to ensure completion of the pipeline on schedule and within budget. 65 KWAZULU-NATAL Business 2013/14 overview Mining Large proportions of the world’s supply of titanium and zircon come from KwaZulu-Natal. sector insight Rio Tinto has paid BHP Billiton $1.7-billion for the latter’s stake in Richards Bay Minerals. • Petmin is spending on new facilities at its Somkhele coal mine. • Forbes Coal paid R440million for Rio Tinto’s stake in two coal mines. • Tronox has permission to start work on its R2.4billion mineral sands project at Fairbreeze. RBM has experienced massively increased sales volumes of all its products and is conducting a feasibility study into a new mine south of Richards Bay, Zulti South. If the mine is developed, then the company will be able to maintain annual production levels of one-million tons of slag until the year 2032. RBM has also invested in a new tailings treatment plant. This facility will allow the company to extract useful product from the old dumps that have built up over many years of mining. Modern technology means that this can happen for a fraction of the cost of new mining. Global demand for titanium has recently grown enormously. Titanium dioxide adds opacity to Smelting operations at Richards Bay Minerals. he rich, dark sands of KwaZulu-Natal’s northern region contain the fourth-largest reserve of titanium in the world. Richards Bay Minerals (RBM) produced 14% of the world’s titanium feedstock and 18% of its zircon in 2011. The company’s annual revenue was $1.2-billion. (Mining Weekly). As part of a trend in South African mining whereby the big companies are focusing on strategic assets, BHP Billiton sold off its 37% stake in RBM in 2012 to Rio Tinto. At the same time, Rio Tinto disposed of two of its smaller coal mines in the province, Zululand Anthracite Colliery and Riversdale Anthracite Colliery, to Forbes & Manhattan Coal. Forbes paid R440-million for 74% in each of these assets, with the balance of shares vested with black empowerment partners. Zululand Colliery is an active mine (Reuters). KWAZULU-NATAL Business 2013/14 T 66 photo: Rio Tinto overview paints, fibres and plastics while titanium dioxide is vital in the pigment industry. In response to increased demand, Exxaro spent about R8.2-billion in 2011 compared to R2.7-billion the year before. The company also initiated the construction of a new mine. Fairbreeze mine, which will replace the Hillendale mine and cost about R2.4-billion to develop, is expected to produce 500 000 tons of ilmenite and 60 000 tons of zircon every year. Sunday Times (5 August 2012) reported that the environmental implications of the mine are causing unhappiness with the nearby Mtunzini Conservancy and ‘residents, property bosses, tour operators and local businesses’. The KwaZulu-Natal Department of Environmental Affairs has approved the mine. China is an enthusiastic buyer of zircon. A deal was announced in 2011 whereby Exxaro became a 38.5% shareholder in US pigment producer Tronox and a new company, New Tronox, runs the South African operation. Exxaro’s mineral-sands operations were valued at R10.7-billion. Exxaro maintains a 26% share in the South African company so that the company stays compliant with black empowerment legislation. There is a possibility that Tronox will build a new pigment plant in the province. KwaZulu-Natal is home to two aluminium smelters (in Richards Bay), three steel plants, a manganese smelter and four concrete factories. Coal Some of the coalfields of the province are being revived and the export facilities at Richards Bay make a massive contribution to the functioning of the country’s mining sector. 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. Production rose 44% to 293 765 tons of saleable coal in the first six months of 2013 (Business Day). New wash plants should raise total production in 2013 to about 880 000 tons, up from 630 000 tons in 2011. Miranda Minerals has several projects in KwaZulu-Natal and recently opened an office in Dundee. Canadian company Forbes Coal bought Slater Coal’s assets in KwaZulu-Natal in 2010 and has recently purchased two mines from Rio Tinto. Other minerals Idwala Industrial Holdings quarries and mills white calcitic and dolomitic limestone near Port Shepstone, where NPC Cimpor also runs a quarry that produces sand, shale and limestone. The northern region has deposits of aluminium and calcitic marbles. Some low-grade bauxite is found. Vein gold mining is undertaken near the northern border with Mozambique. The Umzinto goldfield has several sites, but mining has only ever been on a small scale. Sand and aggregate are produced by Vryheid-based WH Lemmon-Warde Holdings, Lafarge and Afrisam. Corobrik has several facilities in and around Durban. online resources Chamber of Mines South Africa: www.bullion.org.za Council for Geoscience: www.geoscience.org.za Geological Sciences, University of KZN: www.geology.ukzn.ac.za Geological Society of South Africa: www.gssa.org.za National Department of Mineral Resources: www.dmr.gov.za Southern African Institute of Mining and Metallurgy: www.saimm.co.za 67 KWAZULU-NATAL Business 2013/14 overview Mineral beneficiation Steel smelting and aluminium production underpin heavy manufacturing capacity in KwaZulu-Natal. H ulamin has completed its rolled-products expansion sector insight project, Safal Steel has recently opened a new factory in the province, and ArcelorMittal’s Newcastle plant is ArcelorMittal produced oneone of the country’s most important sources of steel million tons of steel in 2011. products, but rumours abound that BHP Billiton is about to • Hulamin has completed its shut down its Richards Bay aluminium smelter. expansion project. Mineral beneficiation is an important part of the regional economy, but BHP Billiton’s decision will be closely watched. The global giant has two smelting operations, Bayside and Safa Steel’s new R1Hillside, with the former apparently being considered for closure. billion metal-coating facArcelorMittal is the dominant company for steel in Africa and tory at Cato Manor was forhas four plants in South Africa, with the Newcastle plant produc- mally opened in March 2012. ing long steel products. The plant has one blast furnace, two The National Depar tment basic oxygen furnaces and four rolling mills, and can produce of Trade and Industr y’s up to 1.9-million tons of steel products annually. The failure of a E n t e r p r i s e Investment dust catcher in July 2011 resulted in reduced volumes produced P r o g r a m m e awarded R30-million to the project. Initial in the year – one-million tons. Hulamin is a leader in the sophisticated aluminium capacity will be 150 000 tons finished-product sector. The company makes rolled prod- per year, but this is expected ucts at Edendale, Pietermaritzburg and Camps Drift, while its to double relatively soon. Pietermaritzburg facility for making extrusions is one of three The manganese furnaces in the country. The company’s R970-million rolled-products operated by Assmang at Cato expansion project is now complete. Ridge have high capacities, but Macdonald Holdings is a KwaZulu-Natal-based group in the diminished demand in 2009 steel and aluminium sector. led to part of the plant being Tata Steel is the anchor client of the Richards Bay Industrial shut down. Development Zone (RBIDZ), with installed capacity to produce Brown McFarlane Africa 150 000 tons of ferrochrome, mainly for markets in Europe was purchased by BSi Steel and Japan. in 2012, giving the latter company, which counts among its biggest clients the Richards Bay-based Bell Equipment, online resources greater capacity in steel plates Aluminium Federation of South Africa: www.afsa.org.za and the potential to expand in Mintek: www.mintek.co.za National Department of Trade and the province. Industry: www.thedti.gov.za South African Iron and Steel Institute: www.saisi.co.za Southern Africa Stainless Steel Development Association: www.sassda.co.za KWAZULU-NATAL Business 2013/14 68 overview Manufacturing KwaZulu-Natal’s manufacturing sector has a broad range. K waZulu-Natal manufacturing ranges from vast steel works and automotive giants to small textile-makers. Steel and aluminium plants account for most of the province’s heavy industry. Mineral beneficiation, automotive, food and beverages and chemicals are covered elsewhere. Downstream activities arising from the mining, sugar and forestry industries enhance the province’s manufacturing capacity. Manufacturing contributes 21.5% of the gross regional product (GRP). The provincial government of KwaZulu-Natal is behind the establishment of the KZN Fashion Council, which aims to organise and develop designers of textiles, jewellery, shoes and accessories. The KwaZulu-Natal Clothing and Textile Cluster is upbeat about the sector in the province, with the National Department of Trade and Industry’s Competitive Improvement Programme (CTCIP) cited as a reason. The Textile and Clothing Unit within the Industrial Development Corporation (IDC) has been active in the province, with interventions at Imraan Textile Mills just one of a range of successful projects undertaken. The IDC has a share in several general manufacturing plants in the province, including Prilla 2000, a cotton milling plant, and a phosphoric-acid facility in Richards Bay. There are 219 clothing companies in the province (Coface). Controversy over wages paid in the textile sector has not abated. A group of Newcastle manufacturers persuaded the Pietermaritzburg High Court to exempt them in early 2013 from the national wage agreement. The business owners (primarily from Taiwan, China and Hong Kong) claimed that 450 factories would close and 14 000 workers would lose their jobs if they were forced to pay higher wages. Ninian & Lester is one of the larger employers in the textile sector, with 1 500 people making clothing (including the Jockey brand), textiles and polypropylene. Pietermaritzburg-based Eddels Shoes has made a comeback of note. According to a Business Times profile in 2012, the purchase of 39% of the company by management and staff has paid off, with 385 staff now employed in making 2 700 leather shoes every day. Two international safety-footwear firms operate out of Pinetown: Beier and Bata Industrial. Carpet manufacturers Belgotex Floorcoverings and Ulster Carpets have facilities in Pietermaritzburg and Durban respectively. sector insight The KZN Fashion Council has been established to promote small businesses. • The Pietermaritzburg High Court has exempted smaller textile manufacturers from national wage agreements. Turkish group Arçelik purchased home-appliance manufacturer Defy in 2011 for R2.5-billion. Defy employs about 2 600 people and had sales in 2010 of R2.5-billion. Companies like Böhler Uddeholm in Pinetown produce downstream products such as tooling materials and welding consumables. 69 KWAZULU-NATAL Business 2013/14 overview Automotive KwaZulu-Natal’s auto manufacturers employ more than 11 000 staff between them. Many of South Africa’s biggest automotive companies operate out of KwaZulu-Natal. 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. The province also has a substantial and varied automotivesupply sector. Trade & Investment KwaZulu-Natal (TIKZN) estimates that the province’s component automotive manufacturers enjoy a combined turnover approaching R10-billion. Durban will host its second BBC Top Gear Festival in 2013, when the Moses Mabhida Stadium and surrounds is turned into petrol-head heaven. In 2012, Toyota exported 5 315 vehicles, more than one-quarter of the total exported by South Africa. The sale of 121 276 vehicles in the year kept Toyota top of the national table, a position it has held for more than three decades. A R70-million investment announced by Toyota in 2012 will see 90 new jobs created to work on a new production for the Quantum Ses’fikile minibus taxi. The Corolla car, the Hilux truck and the Fortuner SUV are manufactured at the company’s large Prospecton plant south of Durban. KWAZULU-NATAL Business 2013/14 T sector insight The provincial government is planning an Automotive Supplier Park. • The Durban Top Gear Festival will be held in June 2013. • Toyota has opened a new 16-seater production line. Toyota and Transnet Freight Rail (TFR) have signed an agreement that will keep new vehicles off the road – until new users on the Highveld need them, that is. In a deal that will replace about 60 trucks lumbering up the N3, TFR has increased the number of cars it is transporting to Gauteng from 70 overview 100 to 500 per week. Special rail wagons have been built. Bell Equipment, the Richards Bay company that makes earth-moving equipment of every sort and has grown into a global competitor, continues to grow. Revenue in 2011 grew to R5.1-billion compared to R3.4-billion in 2010, and prospects are good in Africa, Russia and North and South America. More than 1 000 new staff were employed at the two factories (running at 75% capacity) in Richards Bay and Germany. In 2012, the first of the company’s K-series Tractor Loader Backhoes was sold locally. Powerstar trucks are now being assembled in Pietermaritzburg on a site formerly used by Super Group. China North Vehicle Corporation (Norinco Motors) and BEIBEN produce about 60 000 heavy-duty commercial-duty vehicles every year at their plant in Inner Mongolia, and the Powerstar brand has already been shown at the Johannesburg Motor Show. KwaZulu-Natal Development and Tourism MEC Mike Mabuyakhulu announced in his 2012/13 budget speech that a joint venture has been signed between the South African Taxi Association, black business partners and a Chinese entrepreneur for the manufacture and assembly of taxis in the Ladysmith-Emnambithi Municipality. The project was given a value of R1-billion. Two other global truck marques have assembly plants in the province: Volvo in Durban, and MAN Truck and Bus South Africa in Pinetown. MAN’s assembly plant focuses on front-engine bus chassis. The company is a major supplier of buses to the South African market and includes Volkswagen buses and trucks among the products it sells. Automotive supplies Keeping MAN and Toyota supplied is the R300-million operation, Duys Engineering Group. This diverse group of companies includes in its brief the supply of truck bodies and truck components and it 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 in the province. The air-conditioning and cooling systems company has a factory and its headquarters in Durban. Ramsay Engineering is supplying cross-car beams for BMW and Ford. Funding was received from the Industrial Development Corporation (IDC) to buy new tool-making technology. The company, which has its headquarters in Pietermaritzburg, will make 150 000 units per year for the two original equipment manufacturers. 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 71 KWAZULU-NATAL Business 2013/14 overview Chemicals and plastics KwaZulu-Natal companies are national and international leaders. he group headquarters of Africa’s biggest pharmaceutical manufacturer, Aspen, are located in La Lucia Ridge. In 2012, Aspen’s revenue rose 20% to R9-billion. The large manufacturing facility of Cipla Medpro South Africa in Durban will see volumes rise markedly on the awarding of a R1.4-billion government drug contract. This contract has also attracted the attention of India-based Cipla, which in February 2013 offered R4.6-billion for the South African company. Two large oil refineries and a sophisticated sugar milling and refining industry underpin provincial chemical manufacturing. The chemicals and petrochemicals subsector makes up 17% of the manufacturing output of KwaZulu-Natal, with industrial chemicals accounting for nearly a third. German chemicals group Lanxess is building a R400-million carbon dioxide concentration unit at its existing plant in Newcastle. The company makes tanning raw materials at Merebank in Durban and rubber chemicals in Isithebe north of Durban. Newcastle is a chemical manufacturing hub. The big steel works of ArcelorMittal produce byproducts 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 chemical 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 T sector insight Indian company Cipla has made a big offer to buy Cipla Medpro SA. • Sappi Saiccor is on target to increase chemical cellulose production to 800 000 tons per year. (used in lubrication oil), furfuryl alcohol, diacetyl (a flavouring in margarine) and ethyl alcohol. Kynoch makes fertiliser at plants in Durban and Richards Bay. Foskor’s acid division manufactures sulphuric acid, phosphoric acid and granular fertiliser in Richards Bay. ChemSpec, which makes paint at Canelands, increased turnover in 2012 by 24% to R381-million. According to Trade & Investment KwaZulu-Natal, the province 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 (stockists of many plastic enclosures) also operate out of Pinetown. online resources Chemical and Allied Industries’ Association: www.caia.co.za National Department of Trade and Industry: www.thedti.gov.za Plastics SA: www.plasticsinfo.co.za South African Chemical Institute: www.saci.co.za South African Institution of Chemical Engineers: www.saiche.co.za KWAZULU-NATAL Business 2013/14 72 overview Food and beverages Some of South Africa’s largest food and beverage enterprises are in KwaZulu-Natal. he food subsector makes up the biggest part of the manufacturing sector within the province (84%). The country’s two largest sugar producers play an important role in the food sector. Tongaat Hulett makes a wide range of treacles, caramels and related products for the food, baking and confectionary trade. In 2012, Illovo Sugar made 5 873 tons of its famous syrup at its Umzimkulu and Lower Illovo mills. Dairy company Clover SA and Rainbow Chickens are two big brands that trace their history to KwaZulu-Natal. A third of the chicken company’s 150 farms are based in the province and its headquarters are in Westville. Two of Rainbow Chickens’ four processing plants (dealing with four-million animals per week) are in KwaZulu-Natal. Clover has manufacturing plants at Estcourt and Queensburgh. International giant Unilever is strongly associated with KwaZulu-Natal. The South African company’s headquarters are in La Lucia. Unilever’s launch of a new savoury-foods plant in 2011 was a big signal of confidence from one of the world’s biggest brands. The acquisition of FlavourCraft by international giant Kerry Ingredients & Flavours confirmed the province as a good investment destination. Nestlé has production facilities at Estcourt (coffee and hot drinks) and Harrismith, where infant formula is manufactured. Dairybelle makes milk and milk products at Pinetown. An agreement to buy produce from Weenen farmers has been signed. Edible oil products are made by the Willowton Group at its national headquarters and plant in Pietermaritzburg. Other well-known food producers include: Sasko (Estcourt and T sector insight Emerging farmers in the Weenen district are supplying a Nestlé factory. • Illovo Sugar produced 5 873 tons of syrup in 2012. Durban), Beacon (Jacobs), Nature’s Source (Durban), Snackworks biscuits (Westemead, Pinetown) and National Brands (Durban). The South African Breweries plant at Prospecton is one of the biggest producers in the region. Bergville subsistence farmers have contracts to supply SAB with yellow maize, an arrangement that will allow them to plan ahead and to invest in production. Coca-Cola has a plant in Durban and a large bottling plant, run by Amalgamated Beverage Industries, at Phoenix. The Ceres Beverage Company has a plant in Durban and bottled-water company aQuelle is based at Kranskop. photo: Rainbow chicken farms online resources Agricultural Research Council: www.arc.agric.za Consumer Goods Council of South Africa: www.cgcsa.co.za Food Advisory Consumer Service: www.foodfacts.org.za Food & Beverage Reporter: www.fbreporter.com National Agricultural Marketing Council: www.namc.co.za South African National Consumers’ Union: www.sancu.co.za 73 KWAZULU-NATAL Business 2013/14 overview Engineering KwaZulu-Natal’s engineers are delivering on sophisticated projects. sector insight Port Equipment Maintenance is a new unit of Transnet Engineering. • DCD Group has bought Elgin, Brown & Hamer. L es six business units and has 3 555 employees. The Coach unit upgrades coaches and the Auxiliary business is the main supplier of rail wagon tarpaulins to Transnet Freight Rail. The Port Equipment Maintenance unit and units specialising in wheels and locomotive overhaul are other entities. There are a further six depots located around the province. Fluor Corporation has been awarded the engineering and design contract to work on Sapref Refinery’s project to make its fuel-production processes more environmentally friendly. Fluor is based in the Dormac, a marine-engineering company, is based in the Bayhead US, is listed on the New York area of KwaZulu-Natal. Stock Exchange and has a big presence in KwaZulu-Natal, arge engineering projects in the construction industry and especially in Richards Bay. in the expansion of the province’s two ports has led to an The transport and infrastrucexpansion of this sector in recent years. Water schemes ture sectors have been attractin rural and urban areas are a current priority for planners. ing the most recent attention The construction of the King Shaka International Airport and but all of the province’s biggest the Dube TradePort created a lot of work for engineers, and the industries require sophisticated associated transport infrastructure expansion will continue this trend. engineering skills: aluminium The Transnet Engineering (TE) plant in the Port of Durban is one smelters in Richards Bay and of the biggest engineering enterprises in KwaZulu-Natal: it hous- steel works in Newcastle, KWAZULU-NATAL Business 2013/14 74 photo: dormac marine and engineering overview Richards Bay and Cato Ridge. The iLembe District Municipality called on Black Balance Projects There are also chemicals and to design and manage its R1.4-billion bulk-water scheme, one of plastics-production plants, and several that the engineering firm is working on in the province. the large automotive industry Eskom is building a major pump-storage facility at Ingula and needs qualified engineers. bulk-water supplies from the Midmar Dam are being piped to The opening by K’Enyuka, Durban. The Western Aqueduct Joint Venture comprises Naidu specialists in the mineral Consulting, SSI and Knight Piésold Consulting. and chemical industry, of a DCD Group has expanded its capabilities in ship repair with Richards Bay branch is in- the purchases (in 2012) of Elgin, Brown & Harmer (EBH). DCD dicative of the growth of this Marine’s annual turnover is expected to top R1-billion as a result. busy port. According to SA Dormac, which is headquartered in the Bayhead area of the Mining, the company will be Port of Durban, is best known for its marine engineering but it looking to expand beyond also offers specialised services to the sugar industry and provides coal mining and mineral con- machinery for industrial giants like Toyota and Defy. The company centrators into the pulp and has machine and fabrication shops in Durban and Richards Bay. paper, sugar, agriculture and In the bridge-building field, Group Five’s Pandev joint venture infrastructure sectors. has won accolades for the outbound viaduct of the Warwick Bateman Africa was ap- Triangle Viaduct. The sweeping road that seems to fly high above pointed as the coordinating the extraordinarily busy taxi rank below, was designed by GOBA contractor for the expansion Consulting Engineers with Royal HaskoningDHV acting as the of the Richards Bay Coal consulting engineer and project manager. Terminal, as it was for the large The Faculty of Engineering at the University of KwaZulu-Natal new NPC-Cimpor cement offers a complete range of qualifications. The faculty includes plant built on the South Coast, schools of engineering specialising in chemical, bio-resources while Group Five and Stefanutti engineering and environmental hydrology, civil (including surStocks did civil works such as veying and construction), mechanical and electrical, electronic dams, bridges and roads. SKP and computer. In 2012, the chemical-engineering department was involved in civil design and passed the benchmark review conducted by the British Institute Siemens was responsible for of Chemical Engineering. electrical design and supply. The multi-product pipeline from Durban to Johannesburg is a complex operation involving multiple suppliers and cononline resources tractors, Arup and Group Five Consulting Engineers South Africa: www.cesa.co.za among them. Engineering Council of South Africa: www.ecsa.co.za Providing clean drinking South African Federation of Civil Engineering Contractors: water to communities is a www.safcec.org.za perennial problem that engiSouthern African Institute for Industrial Engineering: neers need to tackle. Dealing www.saiie.co.za with too much water after Southern African Institute of Steel Construction: www.saisc.co.za storms is something that SRK Southern African Institution of Chemical Engineers: Consulting is helping eThekwini www.saiche.co.za Municipality with. Inland floodSouth African Institution of Civil Engineering: www.saice.org.za ing and the battering of coastal Steel and Engineering Industries Federation of South Africa: areas by high seas are among www.seifsa.co.za the challenges to be faced. 75 KWAZULU-NATAL Business 2013/14 interview A passion for people and performance Centre Manager Sugen Govender outlines the factors behind the success of the Durban plant of Transnet Engineering. When did you start with Transnet? I started in 1990, some 23 years ago, in this very plant as an apprentice welder. Sugen Govender And has it helped you in your current position to have started from the floor? Having worked your way up allows you to understand the operation, the people and the culture. You can bridge the gap between management and labour much better. I believe the workman respects you more if you came from the ranks than if you come from outside. It allows you to have more of a rapport with people. When last did you wield a welding torch? Last week! I went to one of the technical colleges. We are sponsoring some welding machines there so we were just messing around, but it was nice. biography Sugen Govender was a tutor at the School of Engineering, a training manager, and human resources manager for Durban. Promotion followed to the position of national manager of the School of Engineering. Sugen led the Koedoespoort coach business before being appointed as general manager of the same business. Soon after, the post of centre manager of Durban became his. Sugen then left coaches to become general manager of Business and Product Development, as well as centre manager. Did Transnet support you in your studies? Mostly I was supported by Transnet. I did Industrial Psychology through UNISA. During my six years as an artisan on ship and crane repair, I studied human resources. Then I came back here to Transnet Engineering on promotion as technical tutor in the School of Engineering in about 1997. Soon after I was appointed as training manager of the Durban Centre. From training manager, I was promoted to in be charge of the School of Engineering nationally. After Unisa I did a BBA through the University of Wales. We were making sure the centre had accreditation, that it was ISO 9001 registered, we upgraded, and we managed that transition and drove all the changes to align with the new Skills Development Act. How did you come to work on the operations side? The chief executive said I should consider a career in operations; I could probably be adding more value, as opposed to staying in Support Services. I was given the opportunity to move to the Coach Business at Koedoespoort as the local business manager. So I chose â€“ for the learning â€“ to move from a national to a local position. KWAZULU-NATAL Business 2013/14 76 interview to do what I have done over the years. What work is being done by Business and Product Development? In Business Development, the focus is on business expansion, integration, innovation, processing and systems. In Product Development, there are principal engineers in charge of each of the nine business divisions, and with them we are looking to improve and introduce new products. We also need to look out for products that have reached their sell-by dates. Sugen Govender with the head librarian Zanele Makhatini in Transnet Engineering’s library. What motivates you? Passion for people and passion for performance. What resources are devoted to research? There is a new Research, Development and What are some of the achievements of the Innovation unit. I spend three days per week Transnet Engineering’s Durban plant? in Pretoria. We have signed a memorandum We made the most new wagons last year for of understanding with the Council for Scientific several clients, including Sasol and Botswana, and Industrial Research (CSIR). Transnet will and Omnia. employ 250 researchers and lease 5 000m² at the CSIR. Transnet has also signed an MOU with Are Transnet workers aware of the Market the Innovation Hub. Demand Strategy that is so much a part of the company’s future plans? What is the next big thing? The workers are enthusiastic. We pick it up in information sessions. People say, ‘Why is this not happening? We need it to happen in terms of the MDS, we won’t be able to deliver unless this is in place.’ What information sessions are these? Every business has one information session per month. Also, four times per year we get everyone from the region into a tent. Anyone can ask the CEO or anyone else on the executive committee any question they like. How do you feel about Transnet? I am extremely loyal, because I grew up in this company. It took me from school; it has given me the skills, the knowledge, the competencies In the past you competed on price, then on product, then on technology. The next big thing is that we have to be competitive in all three. We need people who can be innovative; we can’t have the ‘staatsamptenaar’ mentality. Specifically, we are developing an African locomotive. Designed and built locally, the first one will be in Durban. It is a flagship project for Durban. The design in is progress, and we hope to have it rolling off the production line in December 2013. The TransAfrica Locomotive has been given the name Mzanzi by the Minister of Public Enterprises Malusi Gigaba. 77 KWAZULU-NATAL Business 2013/14 focus Enabling the economy through training Improvement and training are part of the DNA of the Durban plant of Transnet Engineering. ting up in the company library during lunch break, but these are among the strongest images that I took away from a recent visit to the Durban plant of Transnet Engineering, writes KwaZulu-Natal Business senior writer John Young. The chess that I saw being played next to the canteen, and the diligent book reading, told me that this was a place where improvement is part of the DNA of the place, where study is promoted and rewarded. The gleaming new machinery was impressive, and the highly skilled staff working on the machines also made a big impression, but for me the signs of educational improvement were even more noteworthy. The plant’s School of Engineering is training a new generation of artisans. If my day had started with an interview with Centre Manager Sugen Govender I wouldn’t have been so surprised because he is very obviously a man who believes in life-long learning. Sugen worked his way from artisan to national manager of several divisions of Transnet, and he is now at the head of the company’s vital Business Trainee Balindile Makonya is hard at work at Transnet’s School of Engineering in Durban. M en in blue overalls playing outdoor chess is not what most people would associate with Transnet, and certainly not with the old ‘Railways and Harbours’. Nor a man with a bright yellow and red safety vest swot- KWAZULU-NATAL Business 2013/14 78 focus ues. She believes there are a lot of opportunities for women in the company. Workshop meeting areas (Letsemas) are used across the company for detailed report-backs and planning sessions every day on issues such as safety, targets and housekeeping. These teams are given scores in a range of categories, and they are rewarded accordingly. Each team is asked to Adopt-a-Spot that they then beautify. Sugen goes on regular walkabouts and it’s not always about positive reinforcement. ‘We also take pictures and fine businesses if it’s dirty. Just this morning, we went around the plant looking for attention to detail, where the grass is not cut. If someone visits, they will soon get an idea: Are they going south, or are they on top of their game?’ Safety is always a big concern in a large industrial enterprise with dangerous machinery. Sugen doesn’t believe that there is such a thing as a ‘good’ safety record. He prefers ‘satisfactory’. ‘What you want,’ he says, ‘is no injuries, no near misses. You want to strive for zero. We do have that in some areas, but I want a much better safety culture among the workmen of this plant. The guys on the floor sometimes don’t understand, because they do it all the time. It becomes a routine, and then you drop your guard and you get hurt.’ But over and above the targets and the safety concerns, there is a palpable sense that workers at this plant are treated as much more than wage units. Sugen is rightly proud of a smart gym and the canteen that stands in an attractive and shady garden in the middle of the complex. The library is free (‘But if you lose a book you pay for it’) and the gym members’ fees make it self-sustainable. Sugen sees these things as ‘integral parts of a big industrial facility such as this’. Free Internet is offered to workers to study or do research. ‘We need to create a culture of learning,’ says the man who himself did two degrees part-time. The emphasis on learning at Transnet Engineering Durban is part of a broader philosophy. As Sugen puts it, ‘There is a great shortage of skills in the country. Everything relates to how we relate to the individual. And then we need to relate as a team that is enabling the organisation. And in that way we are ultimately enabling the economy.’ An example of the ‘Adopt-aSpot’ initiative. and Product Development unit. Says Sugen, ‘I have a passion for people from a spiritual point of view; to help people realise their full potential. You mustn’t become selfish because you are sitting somewhere of significance... you must be a catalyst for them to move up.’ Amanda Khumalo, communications officer for the region, is a typical example of staff moving upwards. After a spell as a secretary elsewhere and armed with a marketing diploma from Varsity College, Amanda worked as personal assistant to the centre manager for two years before starting work in communications. ‘It is rewarding being able to meet people and communicate company strategy to people and back to head office,’ says Amanda. ‘I am doing my honours in marketing now, and Transnet is supporting me,’ she contin- read more Visit: www.transnet.net 79 KWAZULU-NATAL Business 2013/14 overview Transport The KwaZulu-Natal transport sector plays a major role in the provincial and national economy. Long-distance haulage by road is still a major component of the province’s transport sector. K waZulu-Natal’s geographic location gives the province sector insight an advantage in the transport and logistics sector, which ensures that it is a major component of the economy. The A new Vryheid airport will province is relatively close to the industrial and manuopen in 2017. facturing strength of Gauteng Province, and its position on the • National government eastern seaboard gives it maritime access to countless destinahas allocated R15-billion to KwaZulu-Natal infrations. Ports are dealt with in a separate section of this publication. structure. The Durban-Free State-Gauteng Corridor is a national priority • Value Logistics is building infrastructure project. Related to upgrades to the N3 are a range a logistics hub on the N3 of plans that include: near Pinetown. • Developing Cato Ridge as a dry port • Extending commuter rail to Pietermaritzburg • Developing Harrismith as a logistics hub metres of road and reseal • Transforming the old Durban airport into a dig-out port 1.8-million square metres of National government’s infrastructure grant to the province in tarred road every year. The 2012/13 amounted to R15-billion. This money is to be spent on Zibambele contractor system, schools and water, ports and rail infrastructure. whereby a rural household Although 6 000km of rural roads have been built over the is paid to maintain a section years, a backlog of 11 800km still remains. The KwaZulu-Natal of road, is supporting some Department of Transport aims to rehabilitate 1.4-million square 40 000 people per year and KWAZULU-NATAL Business 2013/14 80 photo: imperial logistics overview many pedestrian bridges have been built over rivers in rural areas to allow children to get to school safely. East are seen as potentially huge growth areas for KwaZulu-Natal. The Travel Agents Federation of India held its 2013 annual conference in Durban and was told by South Africa’s Tourism Minister, Marthinus van Schalkwyk, that his department was aiming to attract 100 000 Indian tourists to South Africa annually by 2014. SA Express connects to Zimbabwe, Zambia, Mozambique and Botswana and will extend services to a further four Southern African countries based on demand. KwaZulu-Natal has four regional airports: Oribi Airport (Pietermaritzburg), Margate on the South Coast, Ulundi in Zululand and Mkuze in the north-eastern area. Virginia Airport north of Durban is the site of fixed-wing and helicopter-pilot training. Trade & Investment KwaZulu-Natal is working to improve regional airports in the province. In 2011, the provincial government allocated R30-million to the Prince Mangosuthu Buthelezi Airport at Ulundi for an upgrade. The new Vryheid airport is due to be completed in 2017 and will include facilities for a flight school, repair and maintenance, and a storage component that will supplement the Dube TradePort. The existing airport (about 10km from the new site) will be closed down. A South African consortium (Adajet, Fastjet and Delca Systems) is in partnership with Nordic Aviation Service (Future Airport Solutions and Campus Kjeller) (Engineering News). Dube TradePort (DTP) is public entity owned by the KwaZuluNatal Provincial Government. One aim of DTP is to establish an ‘aerotropolis’ in the vicinity of KSIA. This city will service the airport but it will also feature office parks, commercial entities, hotels and retail developments. Airports King Shaka International Airport (KSIA) is the newest facility in the Airports Company South Africa (ACSA) stable, having opened in 2010. In 2011, the airport handled 4.8-million passengers, but has the capacity to deal with seven-million. Growth in passenger numbers is 3.8%, better than the national average. The airport experienced a 7% rise in arrival numbers during the UN conference on climate change, COP17. Emirates is the airport’s international carrier, having been on board since the airport was commissioned. The tourism markets of India and the Middle Distribution centres are the foundation of a supply network, as they allow a single location to stock a vast number of products. 81 KWAZULU-NATAL Business 2013/14 overview Logistics Value Logistics is set to build an industrial park alongside the N3 near Pinetown that will double as a logistics hub for the company’s operations. The first phase of the project will see the company build a 15 000m² warehouse and the expected delivery time between Johannesburg and Durban will be reduced by two hours. The site has a railway siding. The Canelands industrial site near the airport is rapidly becoming a logistics hub, with Shoprite having established a large distribution centre there. Among all of the developments going on around the King Shaka Airport and Dube TradePort, Tongaat Hullett is making provision for specialised freight routes to feed directly into warehouses at the airport. At the Dube Cargo terminal, a single handler, World Flight Services, sees to the logistics of the terminal that is linked to the airport and the TradeZone. There is 13 000m² of warehouse floor space and a further office component of 2 000m². Annual capacity is 100 000 tons. An in-house border police unit allows for fast administration. Property developer Capital Property Fund will be hoping that Transnet’s plan to create a new dig-out port on the site of the old airport south of Durban comes off: it has bought the old Clairwood Racecourse and renamed it Clairwood Logistics Park. Either way, the site will become one of the biggest logistical hubs in the province, situated as it is close to the Port of Durban. About 400 000m² of warehouse space will be built on the 77-hectare park. (RBCT) is advancing. New trains equipped to run without switching electrical systems are being acquired by the rail entity. Transnet Freight Rail (TFR) will increase levels from the current level of about 65million tons per annum (mtpa) to 81mpta by 2015/16. The Richards Bay and Durban rail corridors will receive R37-billion in investment upgrades in the years following 2011 as South Africa’s raw materials producers send ever-growing volumes to India and China. The assets of TFR’s new business unit, the Container and Automotive Business (CAB) unit, have been ringfenced and its administrators given certain decision-making powers. The CAB has been created because of the importance of the JohannesburgDurban line. The number of trains on the line has increased from four a day to current levels of 22 per day: this has led to increased volumes that the CAB wants to take even higher. In greater Durban, an integrated transport hub has been developed to run alongside the new railway station at Bridge City. The station itself has been built under the new shopping centre and connects to the R150-million taxi and bus rank developed by the municipality. Rail Work on expanding capacity on the railway line between the coalfields of the Highveld and Richards Bay Coal Terminal online resources Airports Company South Africa: www.acsa.co.za Dube TradePort: www.dubetradeport.co.za King Shaka International Airport: http://kingshakainternational.co.za/ KwaZulu-Natal Department of Public Works: www.kznworks.gov.za KwaZulu-Natal Department of Transport: www.kzntransport.gov.za South African National Roads Agency: www.nra.co.za Transnet Freight Rail: www.spoornet.co.za Transnet National Ports Authority: www.transnetnationalportsauthority.net KWAZULU-NATAL Business 2013/14 82 With us you see all Africa's opportunities. Seeking trade and investment opportunities or the inside track on government initiatives and emerging markets in Africa? Global Africa Network publishes a broad range of print and electronic publications highlighting trade, investment and local government projects in emerging markets. Contact us for more information on how to participate in our publications, or receive a complimentary copy. Global Africa Network Pty (Ltd) Tel: +27 21 657 6200 Email: firstname.lastname@example.org Website: www.gan.co.za PROVIDING TRAVEL AND BUSINESS HUBS Airports Company South Africa was formed in 1993 as a public company and, although majority owned by the South African Government, is legally and financially autonomous and operates under commercial law. As well as providing world-class, secure infrastructure for airlines to transport people and goods, Airports Company South Africa extends its responsibilities to include the promotion of tourism, the facilitation of economic growth and job creation, as well as protection of the environment. Over the years, the company has transformed a fragmented, infrastructural parastatal into a focused, customer driven, efficient and commercially successful business, whose airports have become critical success factors to Brand South Africa. The company currently manages a network of nine airports in South Africa, including the three main international gateways of O.R. Tambo, Cape Town and King Shaka International Airports. In the last financial year, nearly 36 million passengers and more than 540 000 air traffic movements were facilitated. This incorporates a broad spread of airport volumes, ranging from 19 million passengers at O.R. Tambo International, to 1,365 million at Port Elizabeth International and 52 000 at Upington International Airport. A major, R17 billion infrastructure programme was completed in 2010, in time for South Africaâ€™s hosting of the 2010 FIFA World Cup. Airports Company South Africa achieved international recognition for its ability to provide and manage world-class facilities, proudly showcased at the World Cup. One of the major projects in the expansion programme was the construction and commissioning of a greenfield, seven million passengers per annum airport in Durban, proudly named King Shaka International Airport. The airport currently processes just over five million passengers per annum. Reg No. 1993/004149/30. Experience gained through managing airports of different capacities has resulted in the development of a broad pool of skills, prompting the company to seek business opportunities outside South Africa. This has led to Airports Company South Africa successfully partnering in two consortiums to manage and operate Mumbai International Airport in India (from 2006) and Guarulhos International in São Paulo, Brazil, the largest international airport in Latin America (from 2012). Each of these airports processes approximately 30 million passengers per annum. The company’s nine airports possess unrivalled connectivity for organisations wishing to do business in South Africa, the SADC region, sub-Saharan Africa and the BRICS nations. They provide the best network of linkages and ports in the SADC region and is positioned at the forefront of developing an economic union that has such enormous potential. Economic growth, job creation and business opportunities are increasingly dependent on the success of today’s ‘aerotropolis’ and ‘aero city’ concepts: development nodes based around airports. Consequently, the substantial development property available at the airport’s precincts present increasingly attractive investment options, whether for general or for specialised requirements. Contact details Key contact person: Solomon Makgale Group Communication Manager Telephone: +27 (0)11-723-1400 E-mail: email@example.com www.airports.co.za special feature Ports KwaZulu-Natal’s ports are vital cogs in the regional and national economy. K waZulu-Natal has South Africa’s two And if that happens to you, you will have an biggest ports, both of which play vital unrivalled opportunity to conduct a detailed roles in the export and import of goods, study of large trucks. On an average working and are drivers of the economy in their day, it seems that every one of Durban’s 1 021 own right. Port upgrades in the period to 2019 logistics companies is on that stretch of road will amount to R80-billion. – each with at least three vehicles in service! A draft maritime strategy for the province has What might be heaven for a truck-spotter been prepared by the KwaZulu-Natal Planning is also noisy proof that Durban hosts Africa’s Commission, the SA Maritime Authority and the busiest port, and it urgently needs more space. eThekwini maritime cluster. There are actually 1 320 logistics companies in Durban (according to the Back of Port Interface Local Area Plan commissioned by Port of Durban the eThekwini Municipality and compiled by Graham Muller Associates), but 77% of them If you are driving around the western end of have trucking capabilities. Durban’s CBD and happen to take a wrong turn, The Back of Port Interface Local Area Plan you will miss the south-bound M4 freeway and (BoP) came out in July 2012 and recommends end up in Maydon Road behind Maydon Wharf. that much of the land south of the port be zoned special feature for logistics. It is noted that several companies are illegally operating in the area now. A long-term plan, 2050 Vision, outlines three major phases for the transformation of the Port of Durban: • Upgrades and expansion of existing facilities (to continue to 2020) • Creation of a new dig-out port on the site of the old airport (Transnet has bought the land but this will require a partnership with the private sector) • Excavation of a new basin in the Bayhead area (south-western corner of the port) All of this would be accompanied by upgrades to the road and rail network. Strong opposition to the plans are being voiced by the South Durban Community Environmental Alliance. Edward West of Business Day has pointed out that the South Durban Industrial Basin is already home to ‘two crude-oil refineries, SA’s two biggest paper mills, its biggest container port, several landfill sites and many chemical companies and other factories’. In 2011/12, the Port of Durban handled 78.1million tons (mt) of cargo, of which 45.2mt was imports, 25.6mt was exports and 7.2mt transhipments.(www.ports.co.za). The 2.69-million TEU (twenty-foot equivalent unit) of containers represented 62% of the total volume handled by South African ports in this period. Transnet Port Terminals (TPT) runs five terminals in the port with a focus on containers and the car terminal. A number of private operators run terminals that specialise in fresh produce, fruit, sugar, oil and petroleum, and coaling. Royal Vopak announced in 2012 that it would sell 30% of its stake in Vopak Terminal Durban to Realtile Chemicals, a black-empowered company. In 2012, TPT spent R700-million on tandem cranes that will significantly reduce offloading times. Southern African Shipyards and Dormac Marine and Engineering manufacture and repair vessels. Smit Amandla and Unical offer bunker-barging services. Port of Richards Bay The Port of Richards Bay dealt with 86-million tons of cargo in 2011, representing just more than 30% of the nation’s cargo. The phased expansion of the Richards Bay Coal Terminal (RBCT) is continuing. Transnet Freight Rail is committed to delivering more coal to the terminal as part of its ongoing upgrading programme. The RBCT, a privately owned operation, is the single biggest coal-export terminal in the world. The operators are hoping to get volumes up to 91mtpa in the near future. Among the owners of RBCT are Anglo Coal, BHP Billiton, Sasol Mining, Xstrata and Exxaro. Transnet is exploring the possibility of building its own terminal at Richards Bay. The focus would be on serving junior mining companies with strong black-empowerment credentials. The Dry Bulk Terminal increased its loading rate by 3.8% in 2012, from 691 tons-per-hour to 717 tons-per-hour. The general-freight terminals are operating near to full capacity with an annual volume of 24-million tons. TPT will spend R12.1-billion at Richards Bay over seven years. A capital sum of R3-billion has been set aside by Transnet for equipment. The delivery of a pneumatic ship unloader, the Rio Tinto Alcan Alesa unloader, marked the start of this ambitious programme. About R1.2-billion will be spent on increasing capacity, through redesign and creating new storage areas. Tenders for two licences for liquid-bulk operations have been issued, and a tender for a ship-repair facility is expected to follow. read more Visit: www.frontiermarketnetwork.com/ article/1137 87 KWAZULU-NATAL Business 2013/14 interview Full speed ahead National Business Manager of Transnet’s Ports Business Bongani Madonsela explains the various functions of Ports Equipment Maintenance, and his role in its operations. Where were you educated? I did my final school studies in Ponego Secondary School in the East Rand Township called Katlehong. Upon matriculating, I then started my tertiary education with Port Elizabeth Technikon (Nelson Mandela Metropolitan University) in 1993 where I studied for a National Diploma in Mechanical Engineering and proceeded to pursue the B-Tech Degree in the same field of study. I later registered with Unisa and studied the Fundamental Management Development Programme, and recently completed my Master’s in Business Administration. When and where did your journey with Transnet begin? Trace your career to the present moment. My journey with Transnet commenced at the Uitenhage plant in 2005, when I was employed as the product development manager responsible for the bill of material, design office and prototype build section. This was followed by acting as an operations manager responsible for the bogie repair and maintenance line, paint shop and sand-blasting section. In 2006, I was selected to join and take part in the Vulindlela task team that comprised McKenzie consultants and various stakeholders from operations in the coal line (Richards Bay). The Vulindlela project was initiated by Maria Ramos to optimise and streamline operations through the application of lean manufacturing and other related processes and practices. In November 2006, I was appointed as a local business manager for the coal line within the Eastern Region, responsible for the maintenance of both coal and general freight bulk wagons and the inspection and preparation of all in-service trains. My area of responsibility was between Richards Bay, Golela and Ermelo. I was promoted to the regional operations manager position in January 2010, and was responsible for the entire Eastern Region, which handles 57% of Transnet Freight Rail’s traffic. In 2012, I was promoted to lead and run the National Business: Ports, which was in existence under the Coaches business. I assumed national business manager responsibilities with the objective of growing the business and providing engineering services to Transnet Port Terminals and Transnet National Ports Authority. Bongani Madonsela biography Bongani Madonsela began working for Transnet in 2005, when he was employed as a product development manager at the Uitenhage plant. Various promotions followed, as he took up the roles of operations manager, local business manager, regional operations manager and the leader of national business: ports. Bongani is now the National Business Manager of Transnet’s Ports Business. KWAZULU-NATAL Business 2013/14 88 interview What gives you the most satisfaction in your work? I get the most satisfaction in my work when I have managed to make my clients happy through our service provided or the product we have delivered. Despite this, I am in a management position and the core of my business activities is largely within my mechanical engineering field Bays 25 and 26 are the hubs of Transnet’s Port Equipment and there is no greater pleasMaintenance operations. ure than to continue expanding my engineering knowledge Do you also have any national responsi- as we (the Ports Business) faces new chalbilities within Transnet Engineering? lenges and victories. Job creation is another Yes, as a national business manager I have element that provides satisfaction and the dual national responsibilities, with half being thought of realising that you have changed inward looking and the other being outward one’s life for the better is appealing. looking. My inward-looking responsibilities include: to provide engineering services to our What is the core business of Ports Equipinternal operating divisions in both Capex and ment Maintenence? Opex programmes, to improve and promote in- The core business for the National Ports Business sourcing objectives by identifying core mainte- is the provision of: nance activities and requirements and aligning the • Engineering services, which includes: business to deliver quality and reliable services. °° Fabrication To achieve this, Transnet Engineering is geared °° Mechanical and electrical repairs up to provide capital to facilitate infrastructure °° Maintenance development, procure required resources, sup°° Refurbishment port training and development of existing and • New build productions: new employees through skill enhancement and °° Design and testing enrichment, and so on. °° Finite element analysis My outward-looking responsibilities include: °° Manufacturing to support the Market Demand Strategy by ensuring that jobs are created through various Where does PEM operate? channels that are either directly or indirectly The National Ports Business is currently operlinked with TE. This includes the expansion ating in Transnet’s Durban centre where new of the Ports Business operations within the build programme are running. A small team was national ports and harbours and provision of established in Richards Bay TPT where repair of services and products to other African coun- various equipment is performed. The refurbishtries. We also aim to increase the use of local ment of straddle carriers was carried out in the content by partnering with original equipment Durban Container Terminal due to the size and manufacturers in support of skills transfer and available facilities within the ports. cross pollination. 89 KWAZULU-NATAL Business 2013/14 interview Engineering a plan for success National Engineering Manager Collin Moopanar gives insights into operations at Transnet’s Port Maintenance division. Where were you educated? I completed a BSc and MSc at the University of KwaZulu-Natal in 1997 and 2001 respectively. I completed my Master of Business Leadership (MBL) at Unisa’s School of Business Leadership in 2009. When and where did your journey with Transnet begin? Trace your career to the present moment. I started my career on the coal line as a depot engineer at the Insezi Richards Bay AC Locomotive Depot in 2003. After three years, I was promoted to Transnet Rail Engineering’s Durban main centre in Bayhead as the centre engineering manager until 2008. I ventured into the private sector for approximately one year as the engineering manager for National Brands Limited. I returned to Transnet Engineering as the national engineering manager in 2009 for the Coach Business. The focus within the division turned to port equipment development and maintenance to support Transnet Port Terminals (TPT) and Transnet National Ports Authority (TNPA), following which I was appointed as the principal engineer: Ports. What are your responsibilities at Ports Equipment Maintenance (PEM)? I provide a supporting role to the Ports Business for engineering and technical expertise. My team and I are responsible for executing design and development of port handling equipment from conceptual stage. I’m also responsible for providing maintenance advice and expertise on specific port equipment. What gives you the most satisfaction in your work? Working with a great team of people that deliberates and finds solutions for most problems or needs that are often complex in nature. What is the core business of Port Equipment Maintenence? To design, develop and supply port handling equipment for our clients, which include 60-ton bath tub trailers, 75-ton and 90ton multi-purpose trailers, 20-ton and 25-ton skips, commodity Collin Moopanar biography Collin Moopanar joined Transnet in 2003 on the coal line as the engineer at the AC traction depot. Collin was promoted to Centre Engineering Manager at the Transwerk Durban workshop in 2006. After a stint in the private sector, he returned to Transnet Engineering in 2009 as the National Engineering Manager for Coaches. The position eventually evolved to incorporate Port Engineering which required key focus in order to grow and support the Port Maintenance business. KWAZULU-NATAL Business 2013/14 90 interview Workers in action in bays 25 and 26 of Transnetâ€™s Ports Equipment Maintenance business in Durban. containers; mid-life refurbishment of straddle carriers and refurbishment of Sisu diesel engines. Also, onsite structural repairs to a range of port handling equipment. Why has it been created as a separate business unit? suited for this environment. The trades that are presently employed are millwrights, coded welders, boilermakers, sheet metal workers, diesel mechanics, electrical fitters, etc. On the engineering side, the requirements are higher in that we are looking for engineers (senior and junior) and mechanical designers. With the extensive engineering expertise and skills that resides within Transnet Engineering, Are there enough workers with approprithe intent was to provide a more supportive role ate training coming through the system to across the other divisions within Transnet and not accommodate expansion plans? just solely on the rail sector. The Ports Business There are enough in the pipeline but not enough was created within Transnet Engineering to to support the immediate requirement. A recently create focus on ports. trade-tested artisan still has to go through the learning curve to gain the minimum experience Have staff been redeployed from within to enable him to function effectively in this enviTransnet Engineering? ronment. We have to find a balance between the To an extent, some staff has been redeployed, experienced and the recently qualified artisans. but the majority of the staff were recruited both PEM is an extremely challenging environment but internally and externally to enable it to focus on it provides an individual with tremendous exposure and knowledge of plants and equipment that supporting TPT and TNPA. very few people are exposed to. The knowledge Is there a particular skills set PEM seeks? that one gains in this environment would provide A person with a specific trade would be ideally one with skills that are highly sought after. 91 KWAZULU-NATAL Business 2013/14 profile Vopak Terminal Durban (Pty) Ltd Vopak Terminal Durban is part of Vopak network of terminals, the global market leader in the independent bulk-liquid storage market. that it can only achieve this ambition by acting according to the Royal Vopak Values. These seven values address the economic, social and environmental responsibilities as a code of conduct by acting with professionalism, focus on service, integrity, improvement, agility, ownership and passion. Vopak Terminal Durban is a key component in the companyâ€™s global footprint. Target markets The importers into Southern Africa and exporters internationally of bulk liquids, namely chemicals and petroleum products. Vopak Terminal Durban runs a multi-product bulk-liquid storage terminal, operating in the Port of Durban. The facility is operated with the highest attention to safety and service delivery. Products stored include chemicals and petro- Year established: 1996 (operation at Island View leum products. The total capacity is in excess of since 1976) 130 000 cubic metres. Vopak Terminal Durban No of staff: 110 is currently investing in the 60 000 cubic metres Major clients: Petroleum and chemical trading expansion earmarked for petroleum products. companies, oil majors and local manufacturers Capacity: 130 000 cubic metres Key facts and figures Description of services Vopak Terminal Durban runs a critical logistical facilitation of bulk liquids between sea vessels, its own land tanks and inland distribution (road, rail and pipeline). Key services include liquid bulk storage, drumming, heating, nitrogen services, vapour return system and clearing and forwarding services. contact info Key contact people: Marcel van de Kar, Managing Director Sibu Zulu, Commercial Manager Tel: +27 31 466 9236 Cell: +27 76 812 2745 Email: firstname.lastname@example.org Physical address: 105 Taiwan Road, Island View, Bluff 4036 Postal address: P.O. Box 21030, Bluff 4036 Website: www.vopak.com Vision and values Vopakâ€™s ambition is to excel in a strongly rooted culture of safety, flawless execution and operational excellence. Vopak Terminal Durban believes KWAZULU-NATAL Business 2013/14 92 overview Construction and property Homes and offices are rapidly replacing the cane fields around greater Durban. 29 Degrees South at Dube City is the new green-star-rated office of Dube TradePort. he construction and property sector in KwaZulu-Natal is seemingly on the road to recovery after something of a post-World Cup dip. Huge tracts of land north of Durban are being converted from cane fields to developments, the developers of The Point appear to have gained a second wind, and the possibility of the old airport becoming a harbour holds intriguing possibilities. Mass housing projects are gathering steam. The multi-billion-rand King Shaka International Airport and associated Dube TradePort are already attracting property investments of every kind. Plans for Dube City will see about R5-billion spent on developing residential apartments, office blocks and entertainment facilities in the vicinity of the new airport. Tongaat Hulett Developments (THD) has planned and developed about 1 500 hectares of land with its partners since 1990. Tongaat Hulett owns 13 863 hectares of land for development. THD is teaming up with the provincial government and other companies to develop housing at Cornubia, north-west of Durban. The plan is for 50 000 houses to be built, with 20 000 units being part of the provincial government and municipality’s housing plan. Business Day’s Hopewell Radebe reported in 2012 that eThek- T sector insight A n U m l a z i s h o p p in g mall development has secured a R273-million loan from Nedbank Corporate Property Finance. • A four-year legal battle between beach conservationists and the developers of The Point ended in December 2012. • Capital Property Fund has bought the strategically located Clairwood Racecourse. wini has 430 informal settlements currently housing about 252 000 households. 93 KWAZULU-NATAL Business 2013/14 photo: dubetradeport overview Good provision of schools and medical facilities are planned for Cornubia, as is a strong, non-motorised publictransport system. The huge project encompasses four components: • Residential: 486 units will be complete by the end of 2013 • Commercial: 300 hectares (ha) will become close to two-million square metres of lettable space, close to the N2 and M41 highways Bridge City shopping mall is the site of a new mixed-use • Industrial: 90ha development. • Mixed use: 921 600m² of retail space, offices and flats The development is stra- ment in the short term, in properties ranging from retail, residential tegically located between and entertainment to business parks. the disadvantaged areas of Office-park developments in Umhlanga have grown in imporPhoenix, Ottawa and Water- tance rapidly in the last few years. La Lucia Ridge has 14 office loo, and newer, more affluent parks, all with views over the ocean and excellent infrastrucareas of Mt Edgecombe and ture. A number of companies are relocating their head offices to Umhlanga. It has the potential this complex. to play a role in integrating these A major development called the Umhlanga Ridge New Town communities. Centre is a mixed-use development of squares and parks that There are many luxury de- surrounds the Gateway Theatre of Shopping, one of the biggest velopments underway on the retail malls in the country. North Coast. Ballito is now an THD is involved in industrial projects (Riverhorse Valley attractive destination for per- Business Estate and Mount Edgecombe Old Mill Industrial Park), manent residents, and there commercial and residential and resort developments, for example are even some Johannesburg the Zimbali and Sibaya Estates. Zimbali Lakes is a new developcommuters taking advantage ment that will expand the original estate by some 300 hectares. of the location of the airport to change their lifestyles. The upmarket Simbithi Eco Old airport and Point Waterfront Estate at Ballito is selling well. Brettonwood Estate will have The sale in early 2012 of the old Durban airport site to Transnet 680 houses and flats, Mount is the first stage in an ambitious plan to create a new harbour to Richmore Estates will have the south of the city. Transnet paid R1.8-billion for the site where a further 2 300 and at Tinley it plans to dig out a port. The private sector must be involved in Manor, another development the project if it is to become a reality Even though the area around the old airport contains several called Palm Lakes is underway. Pam Golding estimates that the petrochemical industries and companies like SAB has a large North Coast is set to receive brewery nearby, residents of suburbs such as Clairwood and about R60-billion in new invest- Wentworth are concerned that the location of a new port will KWAZULU-NATAL Business 2013/14 94 overview Enza Construction, GrinakerLTA Building East and Crowie Projects. Land leased from the Passenger Rail Agency of South Africa (Prasa) is being used to create a new shopping mall in the busy suburb of Umlazi, south of Durban. The mall is next to the KwaMnyandu rail station and is centrally located in relation to the King Zwelithini stadium and the Mangosuthu University of Technology. Nedbank Corporate Property Finance KZN has provided the R273-million for the development, which is being supported by eThekwini Municipality, in terms of its local economic development plans for the area. Nedbank has financed retail developments to the value of R1.3-billion in KwaZulu-Natal since 2010. MC Props was the developConstruction er of the Umlazi Mega Mall, a 32 800m² property with several An ambitious mixed-use development is underway at Bridge City national chains as tenants. Mall. The first phase entails the construction of a shopping centre KwaZulu-Natal has a numto serve the area north-west of Durban (Phoenix, Inanda and Kwa- ber of brick companies and Mashu). Later stages of this development, a joint venture between four cement factories. Three eThekweni Municipality and THD, include the construction of a of these are run by NPCmagistrate’s court, an underground railway station, residential and Cimpor (at Simuma, Durban business estates and a provincial hospital. A range of contrac- and Newcastle), the other by tors are at work on the various aspects of the project, including Lafarge. Lafarge has a large depot and cement clinkergrinding operation in Richards online resources Bay, six aggregate quarries and Construction Industry Development Board: www.cidb.org.za eight Readymix plants around Master Builders and Allied Trades Association (KZN): the province. The Lafarge www.mba-kzn.co.za Community Trust supports National Department of Public Works: www.publicworks.gov.za the Ntwashini community in a SA Estate Agency Affairs Board: www.eaab.org.za variety of ways, having comSA Institute of Architects: www.saia.org.za mitted more than R1.3-million SA Institute of Valuers: www.saiv.org.za over a three-year period to SA Property Owners Association: www.sapoa.org.za upliftment projects. materially increase freight traffic in the area. An environmental impact assessment is still to be done. The purchase by Capital Property Fund for R430-million of the old Clairwood Racecourse in 2012 could turn out to be a master-stroke, if the dig-out port goes ahead. The plan is to put new container and car terminals in the new port, ideally located for new cars coming out of Toyota’s massive plant at Prospecton. If the car terminal were to be moved out of the Port of Durban, that would be a bonus for the Durban Point Waterfront Development. Millions of rands have been spent on transforming what used to be a very run-down area into an upmarket area, and so if shiny yachts could replace cars destined for export, this would undoubtedly be a boost. In February 2013, The Point still had something of an unfinished feel to it, but the resolution of a long-running court battle may help to spark new life into the project. An agreement between the Durban Point Development Company, the Durban Paddle Ski Club and the Save Vetch’s Association will allow three watersport clubs to operate from and protect the beach and the reef at Vetch’s pier. There are currently 500 flats completed, and a hotel and a 50 000m2 shopping mall are planned. RE/MAX is selling 13 apartments in the Point Waterfront area, ranging in price between R1.1-million and R6.5-million. 95 KWAZULU-NATAL Business 2013/14 profile Lafarge South Africa The company is a subsidiary of the international Lafarge Group, the world’s leading cement company and a world leader in building materials. The core businesses of Lafarge South Africa are the manufacture and supply of cement, To become a supplier of products and solutions aggregates, ready-mixed concrete, gypsum- for construction. To build more liveable and susplasterboard and interior building fittings. tainable cities and help human beings, whatever their income, culture and geography, access Lafarge South Africa has two main subsidiary better-quality housing at a cost they can afford, operating companies: with a lesser impact on nature. • Lafarge Industries South Africa (Pty) Ltd (which includes the cement, ready-mixed concrete and gypsum-plasterboard operations) To be the preferred building-materials supplier, • Lafarge Mining South Africa (Pty) Ltd employer, partner and neighbour in its South (which covers the aggregate and limestone African market. quarrying interests) Group vision Lafarge South Africa’s vision Lafarge South Africa is committed to: In December 2006, Lafarge South Africa • Offering its customers the best in innovative Holdings announced the conclusion of a materials and reliable products and services ground-breaking R1.1-billion broad-based • Supporting the Lafarge position as a worldsocioeconomic empowerment transaction. The leading brand for its suppliers, employees, transaction involved the sale of 26% of Lafarge customers and shareholders SA’s mining and 10% of its manufacturing businesses to its employees and Sinako (Pty) Ltd, a women-led empowerment consortium. • Sinako holds 75% of the empowerment Cement stake, while two joint lead partners, Peotona Lafarge South Africa is one of the major cement Group Holdings and Motjoli Resources, manufacturers in Southern Africa. The company’s hold 40% of Sinako. The remaining ordinary flagship cement-production facility at Lichtenburg shares in Sinako are held in a broad-based in the North West Province is the largest and one independent education trust (53%) and a of the most technically advanced in the country. community trust (7%). The company also operates two cement clinker • The structuring of the transaction was con- grinding stations, one at Randfontein on the west sidered to set a high standard for empower- side of Johannesburg and the other at Richards ment deals. In particular, the education trust Bay in KwaZulu-Natal. The company is a market would allow Lafarge SA to contribute to a leader in the supply of a wide range of innovative critical area of South Africa’s development, cement products that meet the needs of customwhile supporting the government’s policy ers for reliable quality, high-performance products combined with a lower carbon footprint. to address the country’s skills shortage. Local BBBEE shareholding Lafarge South Africa’s mission Products KWAZULU-NATAL Business 2013/14 96 profile Readymix concrete aluminium profiles for doors, windows and partiThe company’s Readymix concrete business is tion frames and associated accessories. A lighta ready-mixed concrete market leader in South weight steel frame manufacturing facility offers a Africa and a leader in providing innovative products faster, more efficient building solution for quality and solutions for the local construction indus- housing and extensions. try. Over 50 batch plants are strategically sited throughout South Africa together with mobile concrete batch plants that enable Lafarge to provide a rapid response on urgent projects, together with The company markets to all sectors of the conthe benefits of an on-site service, where necessary. struction industry on a national basis and to nearby Lafarge Readymix produces standard concrete territories. Major sectors include residential and to the highest quality standards and strength re- commercial buildings, general urban infrastructure, quirements, as well as a wide variety of specialty harbours and airport infrastructure, road and rail concretes. construction and rehabilitation, solar and wind power projects, dams and reservoirs. Aggregates Target markets The Aggregates business unit operates 20 quarries strategically located throughout South Africa to service all sectors of the local construction Cement: In excess of three-million tons per year industry. Its quarry materials fall broadly into from the cement-production facility at Lichtenburg in North West Province and clinker-grinding stathree categories: • Road materials – crushed rock is screened tions at Randfontein in Gauteng, and Richards and blended to suit a variety of applications Bay in KwaZulu-Natal from driveways to national roads Readymix concrete: In excess of two- million tons • Concrete materials – specified aggregates per year used in a variety of concrete mixes Aggregates: In excess of eight-million tons per year • Specialised materials – washed or blended aggregates for use in the road, paving, brick contact info and block industries Key contact people: Gypsum Charlene Lamb, Country Communications Manager Lafarge Gypsum manufactures and markets inTel: +27 11 657 0000 Fax: +27 86 630 3819 novative gypsum-based building solutions and Email: email@example.com related systems for constructing, finishing or decorating interior walls and ceilings in residenNatalie Lume, Communications Officer tial, commercial and institutional construction Tel: +27 11 657 0000 Fax: +27 86 630 5067 projects. The company manufactures its core Email: firstname.lastname@example.org product plasterboard at a world-class facility in Roodekop, Johannesburg, from high-quality local Phumi Makhanya, Communications Assistant crystal gypsum. The company also supplies other Tel: +27 11 657 0000 Fax: +27 86 633 8962 products such as decorative polystyrene mouldEmail: email@example.com ings, cove cornices and plasters for jointing and skimming applications. Physical address: 35 Westfield Road, Capacity Complementary fitting systems are manufactured at the company’s nearby Alrode factory: steel brandering, stud and track, access floor systems, Longmeadow Business Estate Ext 11, Edenvale 1609 Website: www.lafarge.co.za 97 KWAZULU-NATAL Business 2013/14 profile Black Balance Projects A leader and innovator in architecture, development planning, engineering and economic development. Black Balance Projects (Pty) Ltd is a dynamic and skilled business enterprise committed to Year established: 2006 the sustainable social development of people No of staff: 38 and the critical delivery of infrastructure in South Major clients: KwaZulu-Natal Provincial Africa. It is a company geared to satisfying in- Government, National Government, iLembe creasing market demand for fully integrated, District Municipality, Mandeni Municipality, turnkey business solutions, regarded as crucial Kwadukuza Local Municipality, eThekwini in the quest for economic growth in and the Municipality. necessary development of South Africa. Key facts and figures Description of services The company specialises in a wide range of professional services providing a comprehensive project management and consulting service in the business environment while taking cognisance of the country’s social development needs. The company comprises four business units, namely, Engineering, Development Planning, Economic Development and Architecture. The company thrives on presenting to clients a multidisciplinary set of skills and experiences, which means it can offer cost-saving measures. BEE status % black ownership: 100% % black directors: 100% % black staff: 97% contact info Key contact people: Renée Hulley, Chief Executive Officer Mel Clark, Executive Director Malcolm Biggar, Executive Director Tel: +27 31 201 2910 Fax: +27 31 202 3403 Email: firstname.lastname@example.org Physical address: Unit 1, 16 Ridge Road, Musgrave, Durban 4001 Postal address: PO Box 1142, Hyper-By-The-Sea 4053 Website: www.blackbalance.co.za Target markets The company has expertise and a skills base that is ideally suited to both public – and private-sector markets. The skills base and the experience of staff mean that the company has internalised the challenges of its respective clients and has developed innovative sustainable solutions suited for their respective challenges. KWAZULU-NATAL Business 2013/14 98 interview Providing quality, innovation and versatility Black Balance Projects CEO Renee Hulley provides insight into the exciting projects currently being undertaken by her organisation in KwaZulu-Natal. Renee Hulley Please describe the key services offered by each of the companyâ€™s business units. As a multi-disciplinary consulting firm, all business units work together to find the value add in each otherâ€™s disciplines. So while each business unit specialises in its field, it does not do so blindly. In other words, the Engineering Business Unit will often be guided by a planning argument as well as an economic development perspective prior to their implementation. This said, the respective business units provide the following services: The Engineering Business Unit carries out feasibility studies, development plans, final design, site monitoring and project management for municipal infrastructure development, structural development and rural development. The Economic Development Business Unit provides a range of services designed to impact positively on economic development. The Planning Business Unit, which includes architecture, offers its clients a diverse planning bouquet that includes: strategic and spatial planning, urban and rural development planning, land-use management, township establishment, urban design, and programme and project management. Please highlight some recent projects that are being undertaken in KwaZulu-Natal. Bulk Water Supply Scheme for ILembe District Municipality: Black Balance is responsible for the review and project execution of detailed designs, documentation and drawings for all bulk earthworks, bulk-water mains, pump stations, rising mains and access roads, together with reinforced concrete structural works for pump stations, retaining walls, stormwater culverts and foundations. The project is valued at R1.4-billion. Economic planning project: Our company has assisted the KZN Planning and Development Commission in developing the Provincial Growth and Development Plan as well as the Monitoring and Evaluation Framework. The project is valued at R7-million. biography Renee Hulley has a Masterâ€™s degree in Town and Regional Planning, and is registered with the South African Council of Town and Regional Planners. Her illustrious employment record includes positions at iLembe District Municipality, the Department of Co-operative Governance and Traditional Affairs, and the KZN Department of Local Government and Traditional Affairs. She has over 10 years management experience. 99 KWAZULU-NATAL Business 2013/14 overview Energy The forestry and sugar sectors are being targeted as energy providers. A large investment in infrastructure is being made by state utility Eskom, with the R16.6-billion Ingula pumpedstorage scheme in the north of KwaZulu-Natal due to have installed capacity of 1 368MW. New transmission power lines from Mpumalanga are also being built, and the National Department of Energy is investing in an open-cycle gas-turbine plant. Alongside these conventional developments, there are a large number of options being pursued in the renewable-energy field. The KwaZulu-Natal Department of Economic Development and Tourism (DEDT) has a master plan based on three key components: • Renewable Energy Development (RED) Hub with eThekwini Municipality and comprising three clusters: renewable energy and efficiency; integrated energy and infrastructure networks; and sustainable development and biodiversity • TW Kambule Academy for Renewable Energy • Hybrid Renewable Energy Power Plant (260MW) The hub will cost R11.2-billion and be completed in the area near the King Shaka International Airport by 2020. An amount of R4.2-billion is expected to come from the private sector in the period up to 2016, with several partners having already been announced: IKD International (Germany), University of KwaZuluNatal (Durban), Anglo American Platinum and some South Korean technology companies. sector insight The IDC’s Green Unit is suppor ting cogeneration projects. • Zest WEG is using its Brazilian experience to create alternative fuels. • 510 families in the iLembe District have new solar heaters. • The Agulhas current is to become a source of power. Sea power A unique project is planned for the sea off the coast of Durban. Florida-based Hydro Alternative Energy Inc (HAE) believes that its OceanusTM system will allow it to harness the power of the strong Agulhas current that runs along the KwaZulu-Natal coast. Previous sea-power systems have sought to use the power of tides. The R155-million project, which must still pass the scrutiny of envi- Cogeneration ronmental studies, has the support of the Durban Investment A number of the province’s sugar Promotion Agency and private companies. A legacy project of the United Nations conference on climate mills produce power, and cogenchange, COP17, has led to several hundred families in rural eration is gaining in popularity. Calcium carbide producer Groutville receiving solar water heaters. Enterprise iLembe and SA Calcium Carbide (SACC) the iLembe District Municipality are installing the 510 heaters. KWAZULU-NATAL Business 2013/14 100 overview opened its R115-million plant An entrepreneur in the Midlands makes biodiesel from used in March 2013, with the help of oil. Darryl Melrose’s company, Bio Diesel SA, produces 20 000 the Green Industries Strategic litres of diesel every month. Business Unit of the Industrial Development Corporation (IDC). The plant will generate 8MW Solar and reduce by 20% SACC’s dependence on the national grid. The growing popularity of solar water heaters has encouraged IDC chief executive Geof- Durban manufacturer Solar Beam to spend R2.5-million on frey Qhena was quoted at expanding its premises. the plant’s opening as saying A Solar Energy Institute is to be established in the province, a that the sugar and forestry joint initiative between the University of KwaZulu-Natal and the industries in KwaZulu-Natal Georgia Technology Institute of the US. could generate 1 000MW and 400MW respectively. Zest WEG Group told Engi- Wind neering News in June 2012 that it is targeting the cogeneration The Provincial Planning Commission is investigating wind channels sector in the province because and sunlight intensity levels in KwaZulu-Natal. If an environmentalof the company’s special skills in impact assessment is passed, then Astrum Energy will put up about this area, acquired when WEG 30 wind turbines near Empangeni, which will generate 80MW. The bought Zest in 2010. WEG land is currently under sugar cane and that would not change. has been active in Brazil in turning pulp, paper and sugar Biomass into fuel. Biofuels KwaZulu-Natal’s most prevalent crops, sugar cane and sugar beet, are among the most efficient and cost-effective feedstock for the creation of biofuel. A R1.8-billion project is planned for the northern area of Makhathini. The IDC is the major investor in this scheme which is intended to produce 72-million litres of ethanol and 34 megawatts of electricity. 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. 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. online resources Eskom: www.eskom.co.za KZN Energy: www.kznenergy.org.za National Department of Energy: www.energy.gov.za South African Wind Energy Association: www.sawea.org.za Southern African Bioenergy Association: www.saba.za.org Southern African Solar Thermal and Electricity Association: www.sastela.org/index.html Sustainable Energy Africa: www.sustainable.org.za Sustainable Energy Research Group: www.mecheng.ukzn.ac.za Sustainable Energy Society of Southern Africa: www.sessa.org.za 101 KWAZULU-NATAL Business 2013/14 overview Water Billions are being spent on water infrastructure. sector insight Two dam projects will cost R18-billion. • Two hundred households are receiving clean water because of the Bill & Melinda Gates Foundation. On a larger scale, the National Department of Water Affairs is set to spend about R18-billion on two dam projects: raising the wall of the Hazelmere Dam, and building the Spring Grove Dam, on the Mooi River. The latter project will increase water supplies in the Umgeni River catchment area. Construction of the new dam began in 2011 and is expected to be completed in 2014. N e d b a n k i s p u t ti n g R9-million over five years into clearing alien vegetation in the lthough KwaZulu-Natal is a well-watered province in that country’s water-catchment there is a big runoff from the Drakensberg mountains areas, including in KwaZuluin the west to the Indian Ocean in the east, many rural Natal. The Nedbank sponsorship of the WWF’s Water areas are not well served by water infrastructure. The Bill & Melinda Gates Foundation has made a dif- Balance Programme has seen ference in the lives of 200 households in the uThungulu District water flowing more freely in the by making clean water available. This project was facilitated by Umgeni catchment area. Trade & Investment KwaZulu-Natal. Every district of the province Another project in this district is the extension of the Sundumbili has water projects underway. water-treatment works. This plant treats water from the Tugela KwaZulu-Natal has 14 water River. Engineering and environmental consultancy Royal utilities, several of which operate in remote rural communities. HaskoningDHV is leading the R17-million project. KWAZULU-NATAL Business 2013/14 A 102 overview It is likely that a great deal of rationalisation will take place in the near future to improve the resource base of each water provider. The Provincial Water Summit of 2010 resolved that R6-billion was needed to improve existing water schemes and to roll out services to new areas. The provinceâ€™s biggest water utility is Umgeni Water, which supplies more than 400-million cubic metres of potable water to its six large municipal customers: eThekwini Metropolitan Municipality, ILembe District Municipality, Sisonke District Municipalit y, uMgungundlovu District Municipality, Ugu District Municipality and Msunduzi Local Municipality. The company has five dams, 10 waterworks, five watertreatment plants and two waste-water works. In partnership with its water authority partners (each municipality), Umgeni Water scored nine Blue Drop Awards in 2012, an improvement of three on the previous year. Between 2010 and 2015, Umgeni Water intends spending more than R3-billion on catering for growth, rural areas and infrastructure. The single biggest existing project is the Western Aqueduct Project (valued at R864-million) and the associated Northern Aqueduct Augmentation Project that will inject water into the rapidly developing area north of Durban. Construction of a new reservoir (Waterloo) near the King Clarifiers are a key component in the water purification process. photos: Department of water affairs Shaka International Airport, and serving this northern area, was completed in late 2011. The master plan will see water delivered to this reservoir from the Northern Aqueduct Augmentation Project. South Africa has always been a water-stressed country and managing issues related to water supply are going to grow ever more complex. Purification, desalination, water-leakage management and waste-water treatment are some of the issues facing South Africans, and experienced international companies are showing an interest in the country. Four American companies with a presence in South Africa are the Hach Corporation, Harvard Corporation, Nalco and the Adel Wiggins Group. eThekwini Municipality is spending R600-million on water and sanitation in 317 informal settlements. The government of the Netherlands contributed R200-million to this project in 2011. Large parts of the northern part of the province are served by Mhlathuze Water which has built inter-basin transfer schemes, water-treatment plants and sewerage plants that it operates on behalf of local municipalities. The utility has assets valued at more than R3-billion and its area of supply covers 37 000 square kilometres. online resources Mhlathuze Water: www.mhlathuze.co.za National Department of Water Affairs: www.dwa.gov.za Umgeni Water: www.umgeni.co.za Water Balance Programme: www.wwf.org.za Water Institute of Southern Africa: www.ewisa.org.za 103 KWAZULU-NATAL Business 2013/14 overview Telecommunications KwaZulu-Natal is well connected. sector insight Vodacom is spending R6-billion per year • Nashua Communications has expanded capacity. of 2013 (BDLive). MTN and 8ta are also investing in LTE. Mobile technology is being used in innovative ways by South Africa’s banking sector to gain new customers and make it easier for clients to pay for goods and gain access to their money. Products include Absa’s PayPebble, Nedbank’s Approve-it, Standard Bank’s community banking and FNB’s eWallet application. Mobile-phone penetration in South Africa currently stands at 138% (total connections) and 66% (individual subscribers) (Businesstech). These figures are expected to reach 171% and 79% by 2017. Vodacom and MTN have more than 80% of the mobile market, but Cell C has Saudi Arabian firm Saudi Oger behind it, so it is not without resources. According to research analysts Frost & Sullivan, traditional technologies for broadband connection (dial-up and VSAT) are declining in popularity in South Africa as more sophisticated mobile technology Mobile-phone masts are springing up everywhere, as more than two-thirds of the population are active users of mobile devices. S ince 2009, a number of new undersea cables have landed in South Africa, significantly boosting competition and making ADSL possible. With Vodacom spending in the region of R6-billion per year on its 3G and 4G (long-term evolution network, LTE), the capacity of South Africa’s telecommunications network is growing fast. The Vodacom LTE network has sites in the country’s major cities, including Durban, and will have a total of 1 000 by the end KWAZULU-NATAL Business 2013/14 104 overview becomes available. This in- across South Africa. It is expected to cover 10 000km when cludes WiMax, HSDPA and complete. Neotel is backed by Indian giant Tata Communications HSPA+ and the biggest cus- (Business Monitor International). tomer base is companies The merger of three business units within the Nashua group because of the modern trend has created one company, Nashua Communications, that offers whereby they have to stay local area networking (LAN) expertise on-site or in the cloud or a connected all the time. The combination of both, together with voice and data capabilities and analysts predict growth in the Converged Enterprise Network capabilities. An existing Nashua sector to be driven by mobile IP-based network will support the enterprise. Nashua Group is broadband and services that owned by JSE-listed Reunert Ltd. add value in the data field. The State Information Technology Agency (SITA) is a stateT h e D u b e Trad e Po r t owned enterprise that provides ICT services to government and (DTP) has spent more than leads projects in the sector. R100-million on ICT infraSentech is the state agency that provides broadband infrastructure that includes two structure and signals for the country’s broadcasters. Internet condata centres. It has a li- nectivity is provided to government departments, municipalities cence from the Independent and other institutions through a VSAT service. Communications Authority of South African Vanguard of Technology (Savant) is a National South Africa (ICASA) that al- Department of Trade and Industry (dti) programme. It is the marlows DTP to buy bandwidth in keting and awareness programme for the South African ICT and bulk from the likes of Telkom, electronics sector. The aim is to develop South African exports Vodacom and Neotel. Working and to attract foreign investment. with Dimension Data and eThekwini Municipality, which administers Durban, has acBusiness Connection, DTP tively been promoting ICT since the launch of its MetroConnect then sells voice and data ser- programme in 2008. A key component of the strategy has been vices at a cheaper rate to its the sale at hugely discounted rates of spare capacity on the tenants. municipal fibre network. World Wide Worx reports KwaZulu-Natal has an established skills base in microprocesthat 46% of large South African sors and radio-based systems and a strong manufacturing base. firms are using cloud comput- The province’s SmartXchange is an example of a successful ing in one form or another. public-private partnership that supports businesses in the inFixed-line operator Neotel formation technology and communications sector. Incubation is also growing steadily, as it strategies for start-ups and skills development are important goes head-to-head with state- parts of SmartXchange’s brief. owned telecommunications company Telkom. Between March and September 2012, the company signed up 30 000 new consumer customonline resources ers and 400 new businesses, Independent Communications Authority of South Africa: taking the respective totals to www.icasa.org.za 130 000 and 2 400. National Department of Communications: www.doc.gov.za Neotel is the major tenant for Sentech: www.sentech.co.za the SEACOM undersea cable SmartXchange: www.smartxchange.co.za and has entered into partnerSouth African Vanguard of Technology: www.savant.co.za ships with Vodacam and MTN State Information Technology Agency: www.sita.co.za to build an optical-fibre network 105 KWAZULU-NATAL Business 2013/14 interview Effective strategies for real business value Andy Openshaw, CEO at Nashua Communications, talks us through the company’s quest to become the leading player in the ICT industry. Please give a brief overview of Nashua’s operations in the country, with particular focus on KwaZulu-Natal. Andy Openshaw biography Andy Openshaw has been CEO at Nashua Communications since October 2012. He is a qualified pharmacist, and worked for a major multinational company before stepping out of corporate structures and testing his ability in the entrepreneurial space. Andy’s telecommunications experience is impressive, and some of his positions have included Gauteng Managing Director at Telecoms and Data Centre, Sales Director at ECN Telecommunications, Gauteng Director at Hlanganani Investment Holdings and Managing Director at Nashua ECN. Nashua Communications is a wholly owned subsidiary of JSElisted Reunert Limited and has recently merged with Nashua ECN. Our head office is based in Midrand, Johannesburg, and we have branches in Durban and Cape Town. We also have representatives in Port Elizabeth and Bloemfontein, as well as about 300 field technicians countrywide. Our aim is to add real business value by putting in place an effective and open communications strategy, leveraging our comprehensive set of solutions and services in voice, data, video and converged networking technologies, to drive bottom-line benefits for our customers’ business. We are a complete end-to-end ICT service provider, being able to offer a host of services in local area networking, PABX and IP telephony, unified communication, as well as wide area networking and cloud/hosted services. Essentially, from a handset on a desk, to a PABX, to a connection, the transmission of calls and data, right through to hosting your data centre in the cloud, we do it all. Nashua Communications is repositioning itself as a key player in the ICT industry. How does the organisation plan to achieve this goal? Today’s volatile global economy requires businesses to make the best use of their resources while delivering superior products and services. The businesses that thrive are investing in ways that not only meet today’s goals, but also position them for competitive advantage in the economic upturn. As collaboration and convergence evolve from buzzwords to reality, the synergies between the merged entities could give the new company a strategic benefit in this very dynamic and evolving space. Nashua Communications can now deliver a totally integrated solution to new customers and migrate existing customers who have the need into the converged enterprise communication and network space. KWAZULU-NATAL Business 2013/14 106 overview Banking and financial services Investment banks have many opportunities to grow in KwaZulu-Natal. sector insight Seven FET colleges and 40% of the province’s municipalities bank with Absa. • Nedbank has restructured its private banking. • Capitec Bank grew its customer base by 26% in 2012. • Absa has launched a card-reader device called Payment Pebble. With alternative energy being explored in KwaZulu-Natal, the creation by Investec and the European Investment Bank of a renewable-energy fund of €100-million will create many options for investors. The KwaZulu-Natal Growth Fund is a project-finance facility supported by the Kwa Zulu-Natal Provincial Government, Standard Bank, the Development Bank of Southern Africa and the Infrastructure Corporation. The fund is capitalised to the extent of R5-billion. photo: www.techcentral.co.za Thumbzup allows shops to accept card payments from smartphones and tablets. ith huge infrastructure projects still in the pipeline for district municipalities and the provincial government, together with the expansion plans of large private companies such as Unilever and Clover, there are many opportunities for merchant banks in KwaZulu-Natal. When Mondi Packaging SA listed as Mpact on the JSE in 2011, the corporate-finance division of Rand Merchant Bank (RMB) acted as sponsor, financial adviser and joint debt provider. RMB was the chosen financial adviser for Clover’s JSE listing, which brought in R1.7-billion to support the group’s expansion plans. RMB has been involved in several Tongaat Hulett and Richards Bay Coal Terminal projects, two major players in the Retail provincial economy. Nedbank Capital supported Seacom’s R240-million underseacable project, and has signed a three-year funding agreement The four major national retail banks (Absa, Standard Bank, with healthcare group Netcare to the value of R1-billion. Absa’s public-sector division holds the provincial government First National Bank and Nedbanking account. The bank also has the accounts of 40% of the bank) are well represented in province’s municipalities and seven of the nine further education KwaZulu-Natal, while Capitec Bank has shown remarkand training (FET) colleges. KWAZULU-NATAL Business 2013/14 W 108 overview able growth with its low-cost offerings. In the year to February 2013, Capitec Bank grew its customer base by 26% to 4.7-million, with its list of primary customers (who pay their salary into the account) growing 45% to 1.8-million. alBaraka Bank has its headquarters at Kingsmead in Durban, which is also the site of its corporate-banking division. HBZ Bank, a wholly owned subsidiary of Habib Bank and AG Zurich, operates an Islamic branch in Westville and has branches in Durban and Pietermaritzburg. African Bank is the country’s biggest lender of unsecured loans. Through the Ellerines furniture chain, the bank is able to offer more than 1 600 outlets to its client base of 2.6-million. Investors in African Bank include JP Morgan Asset Management, Investec and the Government Employees Pension Fund. In the sector catering to high-net-worth individuals, Nedbank has adopted a new strategy by combing BoE Private Clients (SA clients) and Fairbairn Private Bank (international). All of these clients will now be served by Nedbank Private Wealth. sector, although the percentage of banked individuals is markedly up since the survey began in 2003: just over 50% of the population used formal banking products then against 63% in 2010. All of the big banks are competing to attract new customers and they are using technology to do this. Absa’s partnership with Thumbzup allows shops to accept card payments with smartphones and tablets. Introduced in 2012, the device turns phones into terminals. In 2012, Absa took over Edcon’s card portfolio, massively increasing the bank’s reach (Edcon brands include Edgars, CNA and Jet). Absa’s Entry Level and Inclusive Banking (Elib) branches have proved popular, accounting for an increasingly high percentage of the bank’s loans, despite still representing quite a small number of actual branches. In 2012, Nedbank launched Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone. FNB has a wide range of cellphone-banking options, and in 2012 it launched a Facebook application whereby cellphone vouchers can be posted on the social-networking site. The eWallet application converts the voucher into cash or airtime. Standard Bank’s community-banking initiative offers a lowcost cellphone-banking service. Retailers can act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas. Another area where banks are growing new markets is in affordable housing. In the context of a large backlog, Standard Bank announced that it was setting aside R2-billion for the affordable segment. In 2012, Standard Bank’s exposure to that market grew to R14-billion, an increase of 30% over the previous year. The municipality of eThekwini has 430 informal settlements, accounting for more than 252 000 households. online resources Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Insurance South Africa: www.insurance.za.org KZN Growth Fund: www.kzngrowthfund.co.za Post Bank: www.postbank.co.za South African Reserve Bank: www.resbank.co.za New customers, new technology The Finscope 2010 survey shows that 38% of South African adults use the informal 109 KWAZULU-NATAL Business 2013/14 interview Franchising is key to economic growth Andre Rosslee, Head of Sector Solutions at Absa Retail and Business Banking, gives advice to individuals hoping to buy into a franchise. Please give an overview of Absa’s franchise offerings, with particular focus on KwaZulu-Natal Province. Andre Rosslee Absa offers franchise customers a range of market-leading operational, lending and investment products. Our solutions are aimed at optimising banking value, reducing risks and enhancing cost efficiencies. Among our operational products are cash management and payment solutions, merchant services, electronic banking, business insurance, commercial-asset finance and commercial international banking. Successful businesses view their bank as more than a means of finance: your banker, supported by our franchise specialists, is a valuable business partner who can not only recommend the right banking solutions for your needs, but can offer business-specific advice as well. Whether a single unit or multi-unit franchise owner, Absa has the solutions to suit the business. What tips would you give a franchisee planning to apply for funding? Do your homework and preparation thoroughly. Be realistic with the cash flow and financial projections. This should be based on actual figures achieved by existing franchisees. Demonstrate your ability to manage staff, finances, marketing initiatives and the day-to-day running of the business. Franchising isn’t a ‘get rich quick’ scheme and requires the same amount of effort and time as any business to make it successful. Be prepared to work hard and ensure that you have the support of your family. To what do you attribute your Absa’s success within the franchising sector? Absa recognises the vital role played by the franchise industry in creating wealth and employment opportunities. We believe in partnering with our franchise clients and have established a dynamic team with the aim of intimately understanding the industry and using this knowledge to deliver the most competitive products and innovative solutions. biography Andre Rosslee is a qualified food technologist and completed an MBA through the University of Wales. He has obtained a number of manufacturing, marketing, management, HACCP and ISO qualifications. Andre worked in a wide range of disciplines within the manufacturing and wholesale and retail sectors, ranging from the regulatory through to marketing, sales and distribution environment. Andre is also a member of a number of industry associations. For franchiserelated enquiries, contact Absa on +27 11 350 8000 or send an email to email@example.com. KWAZULU-NATAL Business 2013/14 110 Franchise Absa is committed to the growth and prosperity of the South African economy and recognises the vital role played by the Franchise industry in creating wealth and employment opportunities. We believe in partnering with our franchise clients and to this end have established a dynamic team focused on the franchise industry with the aim of intimately understanding the industry and using this knowledge to deliver the most competitive products and innovative solutions. With more than 15 yearsâ€™ experience in the franchise industry, the team has established a credible track record amongst South Africaâ€™s top franchise companies and through an extensive network of Relationship Executives backed by our Franchise Industry Specialists, Absa provides our clients with the best the bank has to offer. For more information please contact us on 011 350 9727 or at firstname.lastname@example.org Absa Bank Ltd. Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7. listings Business organisations These KwaZulu-Natal chambers of commerce and industry are a helpful first port of call for anyone wishing to invest or do business in the province. Durban Chamber of Commerce and Industry Physical address: Chamber House, 190 Stalwart Simelane Road, Durban 4001 Tel: +27 31 335 1000 Fax: +27 31 332 1288 Email: email@example.com Website: www.durbanchamber.co.za Minara Chamber of Commerce Physical address: Suite 4, GMH Centre, 32 West Riding Road, Sherwood, Durban 4091 Tel: +27 31 208 1898 Fax: +27 31 207 5813 Email: firstname.lastname@example.org Website: www.minara.org.za Estcourt Chamber of Commerce and Industry Tel: +27 36 352 1454 Fax: 086 582 4721 (SA only) Email: email@example.com Website: www.ecci.co.za Newcastle Chamber of Commerce and Industry Physical address: Town Hall Info Office, Scott Street, Newcastle 2940 Tel: +27 34 315 1903 Fax: 086 630 2663 (SA only) Email: firstname.lastname@example.org Website: www.ncci.org.za Kokstad Chamber of Commerce Pietermaritzburg Chamber of Business Physical address: 138 Main Street, Kokstad 4700 Tel: +27 39 727 5170 Cell: +27 84 669 9609 Fax: 086 556 8893 (SA only) Email: email@example.com Website: www.kkschamber.co.za Physical address: Chamber House, Royal Showgrounds off Commercial Road, Pietermaritzburg 3201 Tel: +27 33 345 2747 Fax: +27 33 394 4151 Email: firstname.lastname@example.org Website: www.pcb.org.za Ladysmith Chamber of Commerce and Industry Physical address: 33 Francis Road, Ladysmith 3370 Tel: +27 36 631 0541 Fax: 086 515 8989 (SA only) Email: email@example.com Website: ladysmithchamber.wordpress.com Zululand Chamber of Commerce and Industry Physical address: ZCBF Community Park, South Central Arterial, Alton, Richards Bay 3900 Tel: +27 35 797 1800 Fax: +27 35 797 3134 Email: firstname.lastname@example.org Website: www.zcci.co.za KWAZULU-NATAL Business 2013/14 112 overview Development finance and SMME support Small businesses are creating jobs and the private and public sector are pulling together to create exciting SMMe initiatives. K waZulu-Natal’s informal sector created 66 000 jobs in 2011 and is expected to continue to grow. The provincial small business environment includes cooperatives that are the focus of special government support programmes. Research by Absa shows that small, medium and micro enterprises (SMMEs) were supporting 60% of the country’s employable population in 2011, against a figure of just 18% in 1998. The 2012 Absa SME Index noted that of the country’s 700 000 businesses, only 270 000 employ more than five staff members. The average number of people employed is 11. In 2011/12, the KwaZulu-Natal Growth Fund made R123-million available in project loans, which resulted in 640 jobs being created. It is projected to spend R500-million in 2012/13. Ithala Development Finance Corporation is the finance agency of the provincial government. A full-time CEO has been appointed to oversee a comprehensive turnaround strategy. When the input of the Absa KZN Joint Fund and Ithala is added, a total of R270-million was spent on funding 169 SMMEs. Provincial government is partnering with Absa and Standard Bank to assist entrepreneurs to gain access to capital in the informal sector. Another partnership with the Small Enterprise Development Agency (Seda) resulted in 505 businesses receiving training in pre-finance technical and management skills. In 2012, the Durban Chamber of Commerce and Industry announced a plan to promote township businesses. An awareness day in Umbumbulu focused on the potential of the township market for local and outside business. A total of R220 000 was the prize that helped motivate five entrepreneurs who emerged as winners of a competition organised by the new unit of the ILembe Chamber of Commerce, Industry and Tourism, the Dynamic Mentorship Programme. The African Bank and Enterprise ILembe put up the prize money. Other provincial government initiatives promoting small business include the creation of the KZN Fashion Council (to support designers), the KwaZulu-Natal Furniture Initiative (aimed at The KZN Fashion Council is a provincial government initiative. sector insight Banks are rolling out new types of loans for small businesses. • Enterprise ILembe is sponsoring a competition for entrepreneurs. • The Durban Chamber of Commerce aims to promote township business. photo: jerome stoffels 113 KWAZULU-NATAL Business 2013/14 overview 200 businesses) and industrial parks that will provide hubs for automotive supply and chemical enterprises. The IDC will spend R102-billion to 2016, of which R22.4-billion has been set aside for ‘green economy’ initiatives and a total of R20.8-billion for manufacturing support. An active agency in supporting entrepreneurs is Seda. Seda gives non-financial support through training, assistance with filling in forms, marketing and creating business plans. The Durban University of Technology is part of a consortium, comprising four South African institutions and two British universities, that runs the Technical and Business Educational Initiative in South Africa (Tabeisa Enterprise) offering advice and research support to entrepreneurs. All of the major banks have SMME offerings. Absa Bank’s SME Fund is driven by its Small Business Division, and a unit established in 2012, Enterprise Development. The Absa Development Credit Fund, a partnership with the United States Development Credit Authority, is another avenue for entrepreneurs. 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 enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership. National funding At national level, the launch in 2011 of the Enterprise Development Fund (EDF) by the National Empowerment Fund (NEF) was a positive step in providing more funding for start-up businesses. The NEF’s Strategic Projects Fund has a five-year pipeline of R30billion. The focus of this fund is large projects, but small enterprises will benefit from related contracts. National government has more recently created a new agency to spur the development of SMMEs, the Small Enterprise Finance Agency (Sefa). The new agency falls under the Industrial Development Corporation (IDC), one of the biggest and most significant agencies in economic development in the country. 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 Hibiscus Coast Development Agency. online resources Business Partners: www.businesspartners.co.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za Ithala Development Finance Corporation: www.ithala.co.za Khula Enterprise Finance: www.khula.org.za KwaZulu-Natal Department of Economic Development and Tourism: www.kznded.gov.za KZN Growth Fund: www.kzngrowthfund.co.za National Department of Trade and Industry: www.dti.co.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za South African Institute of Entrepreneurship: www.entrepreneurship.co.za Tabeisa: www.tabeisa.com KWAZULU-NATAL Business 2013/14 114 profile Small Enterprise Development Agency Seda’s vision is to be the centre of excellence for small enterprise development in South Africa. Mandate Seda was established in December 2004 through the National Small Business Amendment Act – Act 29 of 2004, as an agency under the Department of Trade and Industry (dti). It was established by merging three entities; Ntsika Enterprise Promotion Agency, National Manufacturing Advisory Centre (NAMAC) and the Community Public Private Partnership Programme (CPPP). The GODISA Trust and the National Technology Transfer Centre were merged with Seda in April 2006, becoming the Seda Technology Programme (Stp). The small enterprise support function of the South African Quality Institute (SAQI) and the technology-related activities of the Technology for Women in Business (TWIB) were incorporated with the Stp in 2008. The Stp was fully integrated into Seda structures in 2009. Key programmes Business Talk (pre start-up phase) Services focusing on clients who want information on starting a business. Assistance provided: • Business advice and information • Small enterprise training and seminars • Business registration Business Start (start-up phase) Provides tools and techniques for clients who are ready to start a business and want assistance and direction. Assistance provided: • Business planning, counselling and support • Facilitation of access to finance • Business incubation • Basic business skills training • Introduction to co-operatives course Business Build (building phase) Services focusing on clients who want skills to sustain and strengthen their businesses. To develop, support and promote small enter- Assistance provided: prises to ensure their growth and sustainability • Business technical support in coordination and partnership with other role • Networking and business linkages • Capacity-building systems and mentorship players. • Tender advice/procurement • Export orientation • Technology transfer The organisation supports and promotes starts- • Starting and managing a co-operative ups and established businesses in order to increase the contribution of small enterprises to Business Grow (growth/maturity phase) South Africa’s economy, economic growth, job Services focusing on clients who want to grow creation and equity. their business and expand nationally and internationally. Assistance provided: Mission Description of sector of operation 115 KWAZULU-NATAL Business 2013/14 profile • • • • • Business systems development Export development Co-operative support Growth strategies Technology transfer contact info Key contact people: Lindani Dhlomo, Provincial Manager Cedric Mnguni, Operations manager Tel: +27 31 277 95 00 Fax: +27 31 277 9510 Email:email@example.com Physical address: Ground floor, 381 King Dinuzulu Road Postal address: PO Box 52263, Berea Road 4007 Website: www.seda.org.za Trade Point Programme: • Exporters receive support with global markets Key facts and figures Year established: December 2004 No of staff: 56 permanent staff members Affiliated institutions: KZN branches are at: Amajuba (Newcastle), Sisonke, Ugu (Port Shepstone), uMgungundlovu (Pietermaritzburg), uThukela and uThungulu (Richards bay) a seda Success story The Global Vision, trading as Global Bags and Sportswear, specialises in manufacturing custom-made screenprinted bags, folders, sportswear and PVC welded products. Having been established in 1989, the business now employs 68 permanent staff including the owner. Global Bags has continued to grow and increase its boundaries over the years by expanding into Africa – specifically in Namibia, Swaziland, Lesotho, Germany and Mozambique. As demand for Global Bags’ products increased, it became important to ensure that the business employed best practices in manufacturing. The South African Bureau of Standards (SABS) was contracted to implement an intensive quality management programme, and this certification opened opportunities with other public sector organisations such as Armscor, the South African Navy, South African Police Force, and the Departments of Education, Arts and Culture, Sports and Recreation and Economic Development and Tourism. Among its large corporate clients are Kentucky Fried Chicken, MTN Cellular, Absa Bank, Nedbank and Unilever. Large travel agencies such as the Sure Travel Group, Harvey World Travel and Flight Centre are using Global Bags as their preferred supplier of branded travel accessories. Seda has been instrumental in the impressive growth experienced by Global Bags. Seda’s intervention with productivity improvement resulted to the following: • Increased competitiveness (turnaround strategy and automation on designs addressing competiveness) led to mass production, wastage elimination and better turnaround time • Business turnover has improved from 6 000 000 to 8 000 000 per annum. • Global Bags has ventured into new markets. Founder of Global Bags Karun Moodley said ‘The future is very promising for our organisation as we position ourselves to compete in the international market through exports into strategic geographical locations. We will achieve this by building a network of strong alliances globally. Consequently, we have diversified to include Global Trends Sportswear, which is our manufacturing division responsible for sports clothing and uniforms.’ KWAZULU-NATAL Business 2013/14 116 focus Small enterprise support in KwaZulu-Natal The Small Enterprise Development Agency plays a major role in developing an enterprising nation. K waZulu-Natal is a unique and dynamic province. It is dynamic in the sense that it attracts a diverse population and has ample opportunities for business. The Small Enterprise Development Agency (Seda) operates in such an environment. The Seda branch offices are found in urban and rural areas, thus making it a unique enterprise-development agency. Seda’s priority sectors are: manufacturing, agriculture/agriprocessing, ICT and tourism. This does not necessarily imply that Seda does not serve other sectors. It has a variety of services that are meant for businesses at various levels of growth. As a government agency, Seda takes priorities of government seriously, which include job creation and economic growth. The year 2012/13 was a good year in terms of business support and performance standards. Seda’s focus shifted from business start-ups to existing and growing businesses. These are companies that have established themselves in particular sectors, but need interventions that will take them to bigger platforms and increase their stability. As Seda moved its focus, it meant that its practitioners had to immediately switch over to bigger businesses that would test both their business knowledge and experience. It has been gratifying to see meaningful and quality interventions, led by Seda practitioners, that would immediately lead to success in businesses, in exporting, importing, growth in turnover, improvement in product quality and economic impact. It talks directly to government priorities and business needs For Seda’s practitioners, this year required them to re-engineer themselves to operate at a higher frequency. For the service providers, the changes meant redefining their potential to deliver in line with Seda’s new strategic focus. It has immediately become crucial that as a province, Seda revisits the database of its service providers and outsource to those who are more experienced and who are read more Visit: www.frontiermarketnetwork.com/article/1137 117 not generalists, but have a clear understanding of and impact in the sector. As South Africa opens up on partnerships, eg becoming a member of BRICS and other platforms, it is crucial that KZN businesses be at the forefront when it comes to taking advantage of opportunities. Every year, Seda takes pride in introducing new businesses to the global platforms. Seda will work hard on this for the benefit of small enterprises Seda participated in a variety of platforms, and introduced SMMEs into the markets. It had clients that participated in the Royal Agricultural Show in Pietermaritzburg, Decorex in Durban and Gauteng, Durban Business Fair in Durban and others that joined international markets through Seda support. It also focused on collective business in the form of co-operatives and community public and private partnership initiatives. As a small enterprise development agency, Seda is exploring more new ground every year to ensure that it becomes the leader in enterprise support in the province. KWAZULU-NATAL Business 2013/14 profile Enterprise iLembe Enterprise iLembe is the economic development agency of the iLembe District Municipality, mandated to drive economic development and to promote investment in the region. Location The iLembe District Municipality is situated on the east coast of the KwaZulu-Natal Province, in the principal development corridor between Durban and Richards Bay. Agriculture • • • • • Agri-processing hubs and community farms iLembe vineyards Moringa plantations Processing and packhouse facility Schools Nutrition Programme Vision To make iLembe the destination of choice for business and investment. Tourism • • • • • Mission To facilitate economic development in the iLembe District. King Shaka Tourism Route Nonoti Mass Beach Tourism Project iLembe winery Arts and crafts hub Film office establishment Manufacturing • Strategic objectives • • Implementation of industrial development strategy iLembe biodiesel facility Facilitate research that assists with policy development and formulation that impacts Services • ICT broadband the mandate of the agency • Influence policy and the regulatory environ- • ICT precinct and communication centres ment for socio-economic development and investment • Identify, build and coordinate partnerships Year established: 2007 among socio-economic stakeholders • Facilitate the packaging and implementa- No of staff: 15 tion of projects in existing and new sectors • Marketing and promotion of iLembe District contact info as an investment, tourism and business Key contact person: destination Cheryl Peters, Marketing and Communications • Research other potential growth sectors in Tel: +27 32 946 1256 Fax: +27 32 946 3515 addition to the current four sectors of focus Email: firstname.lastname@example.org Physical address: Sangweni Tourism Centre, Cnr Link Road and Ballito Drive, Ballito 4420 Postal address: PO Box 593 Ballito 4420 Renewable energy Website: www.enterpriseilembe.org.za • Solar and hydro projects Key facts and figures Current projects and programmes KWAZULU-NATAL Business 2013/14 118 profile KZN Growth Fund KZN Growth Fund is a catalyst for economic growth. KZN Growth Fund looks to fund projects that lead to job creation and black economic empowerment in the province. Mandate Mission The fund was established as a dedicated pro- To unlock significant economic development in vincial project finance growth fund in KwaZulu- KwaZulu-Natal by participating in and promoting Natal (KZN) to: direct private and public investments, permanent â€˘ Provide support for the creation of an ena- job creation and broad-based black economic bling environment in KZN for economic empowerment while remaining financially sustainactivities that are job-creating, welfare- able. This means that the trust will take on inherenhancing and that lead to sustainable ently higher risk for lower than market-related returns in commercial projects, in order to serve as industries â€˘ Promote black economic empowerment catalyst for economic growth and development. initiatives in KZN Vision To be the leading public-private leveraged debt fund that will serve as a catalyst for significant economic development in KZN through cofunding sustainable projects. KWAZULU-NATAL Business 2013/14 Sector of operation The trust targets infrastructure-related projects of R30-million and above. It also focuses on traditional infrastructure and economic sectors, such as: â€˘ Transport and logistics 120 profile • • • • • Tourism Power and bulk-water supply Manufacturing Telecommunications Other sectors, which include but are not limited to manufacturing, agri-processing and mineral beneficiation • • • Description of activities A significant part of the BEE shareholding must reside within the KZN province A negotiable equity contribution from the project sponsors in line with the project’s equity needs The project needs to be at an advanced stage of implementation so as to enable disbursement within a period not exceeding six months The trust is a debt fund, structured as a unique public-private partnership between the provincial government, commercial banks and The current projects that the fund has financed development-finance institutions such as are in the following sectors: the Development Bank of Southern Africa. • Transport and logistics Established to finance medium to large-scale • Telecommunications sustainable projects throughout the KwaZuluNatal province, the trust is an innovative initiative aimed at creating sustainable economic development, job creation and black economic empow- Year established: 2009 erment within the infrastructure sector. No of staff: 16 Affiliated institutions: K ZN Department of Economic Development and Tourism Fund size: R1.1-billion The fund provides project-finance debt, structured as either senior or mezzanine debt, or a combination of both instruments over a loan % black directors: 80% period ranging between five and 10 years. % black staff: 94% The fund provides minimum funding of R30-million up to the maximum exposure of R100-million per project. Current projects Key facts and figures Funding limits BEE status Other funding criteria The project should: • Generate new and sustainable job opportunities • Foster broad-based black economic empowerment • Demonstrate the ability to repay the debt funding within the loan period All projects submitted for funding need to satisfy the following broad criteria: • At least a 30% equity share or a minimum BBBEE scorecard of 65 points contact info Key contact people: Siddiq Adam, Chief Executive Officer Stella Mpofu, Chief Financial Officer Tel: +27 31 304 1119 Fax: +27 31 306 2547 Email: email@example.com Physical address: 303 Anton Lembede Street, 15th Floor, Nedbank Building, Durban 4001 Postal address: PO Box 1817, Durban 4000 Website: www.kzngrowthfund.co.za 121 KWAZULU-NATAL Business 2013/14 overview Education and training Skills training is the main focus of FET colleges. F ormidable challenges continue to confront the education sector. Many schools suffer from a lack of infrastructure, and the provincial government is spending heavily on providing classrooms, toilets and other facilities in previously neglected rural areas. National treasury has allocated a conditional grant of R76.7-billion for 2013/14 to all of the country’s provinces, most of which will be spent on building new classrooms. In KwaZulu-Natal, the grant amounts to R15-billion and expenditure will include the construction of 2 000 classrooms. South Africa has a serious skills shortage. The KZN Tooling Initiative is a joint venture between the provincial government and the private sector to promote artisan training. The provincial government’s Ifihile Youth Placement Project claimed a 97% jobplacement rate for the 340 young people who received training in technical skills in 2012. sector insight The number of private schools has grown 44% in 10 years. • The KZN Tooling Initiative is leading a drive to train artisans. • The Ifihile Youth Placement Project has a 97% success rate. National government has invested R2-billion in a recapitalisation project for FET colleges across the country and has made R600-million in bursaries available. KwaZulu-Natal has nine such colleges with a total enrolment of about 80 000. Coastal KZN FET 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 FET College has a focus on engineering as the coal and steel industries are prominent in Newcastle. The Mnambithi FET College is located in the Battlefields Route tourism area and offers National Diploma courses in tourism, among other qualifications. FET colleges Further education and training (FET) colleges are designed to train people in specific skills that are relevant to the needs of the economy. College Coastal KZN FET College Elangeni FET College Esayidi FET College Majuba FET College Mnambithi FET College Mthashana FET College Thekwini FET College Umfolozi FET College Umgungundlovu FET College Area South Coast Pinetown Port Shepstone Newcastle, Dundee, Mandini Ladysmith Vryheid Durban, Asherville, Cato Manor Richards Bay, Eshowe Pietermaritzburg FET colleges and their feeder areas in KwaZulu-Natal KWAZULU-NATAL Business 2013/14 124 overview Tertiary education School of Stellenbosch that makes its content available to executives from all provinces. Its programmes allow executives to tailor-make their own programme rather than sticking to academic terms. Varsity Colleges has campuses in Durban North, Westville and Pietermaritzburg. 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 Schools five locations. USB Executive Development offers business Although KwaZulu-Natal is home to some of South Africa’s oldest and most expensive private schools, the backlog of its courses for executives. The University of KwaZulu- infrastructure at the poorer public schools is still formidable. There are 1.9-million children who benefit from the national Natal (UKZN) has close to 40 000 students studying on school feeding programme in KwaZulu-Natal. A total of 4 747 five campuses in two cities. schools are classified as no-fee schools, accounting for about Greater Durban hosts: 80% of the province’s public schools. • Howard College, Berea There were 44% more private schools in South Africa in 2010 (environment, engineer- than there were in 2001 (South African Institute of Race Relaing, law, humanities) tions). Some of the new private schools are small and modest • Nelson Mandela School but the sector is also attracting investors. of Medicine, Congella JSE-listed ADvTECH has two Crawford Colleges in the • UK ZN administration. province. and Graduate School of Curro Holdings is also listed on the JSE and, in the first six Business, Westville (sci- months of 2012, grew its national school portfolio from 12 to ence, engineering, health) 22. This was partly due to acquisitions, such as that of Curro • Edgewood, Pinetown Embury College in Morningside. There are other Curro schools (education) at Hillcrest and Mount Richmore (North Coast). The Pietermaritzburg camA funding agreement with Old Mutual Investment Group SA pus offers a broad academic (OMIGSA) and the Public Investment Corporation (PIC) will see programme but its speci- Curro roll out 11 low-fee independent schools in the years to 2019. alities are fine art, theology These will be called Meridian Independent Schools. and agriculture. UKZN also There are approximately 26 000 public schools in South Africa. . hosts the National Research Foundation. The Durban University of Technology (DUT) has six faconline resources ulties operating in seven camCouncil of Higher Education: www.che.ac.za puses in Durban and in the Independent Schools Association of Southern Africa: Midlands. DUT is well known www.isasa.org for its outstanding graphicKwaZulu-Natal Department of Education: design school and offers one www.kzneducation.gov.za of only two chiropractic proNational Department of Basic Education: www.education.gov.za grammes in South Africa. National Department of Higher Education and Training: USB Executive Developwww.dhet.gov.za ment (USB-ED) is a company National Research Foundation: www.nrf.ac.za operating within the Business 125 KWAZULU-NATAL Business 2013/14 overview Business support services The business support services sector is as diverse as the provincial economy. B usiness support services operate in specialist areas, freesector insight ing up the companies that buy the service to focus on their core business. Such services can include security, The National Contract Cleaners catering, cleaning, accounting, legal services, furniture Association has signed an and stationery supply, software and hardware management, international partnership. recruitment, consulting, call centres, customer care and many • Speed net working is proving a bit hit in Durban. other key services. Since 1856, the Durban Chamber of Commerce and Industry (DCCI) has been promoting business in the city and region and One of the most popular secproviding services to members. Networking plays a significant tors for outsourcing is cleaning. role in the activities of the DCCI, and businesses can present The National Contract Cleaners themselves through an annual print publication and via Tradepoint Association (NCCA), which celSouth Africa Durban, a web portal. A recent innovation – speed ebrated its 25th anniversary in networking – has proved very popular. One hundred business 2012, is teaming up with the people got together at the Urban Park in Umhlanga for a ‘Coffee Worldwide Cleaning Industry Connection’ and made lots of business connections, very quickly. Association to create new poliMore than 3 500 businesses are members of the DCCI, which cies for the domestic-cleaning has a range of committees that deal with issues beyond the industry. The NCCA is also obvious trade and economic issues: small, medium and micro drawing up a Green Cleaning enterprises, safety and justice and HIV and Aids are among them. policy document. Companies such as UmlaziAnother source of support for businesses in KwaZulu-Natal is Trade & Investment KwaZulu-Natal. One of the agency’s briefs is based Manelise Consultants ofto attract investment into the province, such as the 300-seater fer cleaning services in industrial, call centre for Coracall that opened in Umhlanga in 2012, but a retail and commercial settings. A company that derives its vital role is also played in supporting local businesses to gain access to the export market. Detailed support for every step in income from trash is Collect-athe process of exporting is offered, from registration to helping Can, which celebrates its 20th birthday in 2013. The company exporters gain access to incentives. claims that since it opened its doors, the national recovery online resources rate for cans has improved from 18% to 72%. Durban Chamber of Commerce and Industry: School programmes reach www.durbanchamber.co.za 250 000 children in four provNational Contract Cleaners Association: www.ncca.co.za inces, with upwards of 100 000 Pietermaritzburg Chamber of Business: www.pcb.org.za informal collectors delivering Private Security Industry Regulatory Authority: www.psira.co.za cans to the company. Security Association of South Africa: www.sasecurity.co.za Security Industry Alliance: www.securityalliance.co.za Trade & Investment KwaZulu-Natal: www.tikzn.co.za KWAZULU-NATAL Business 2013/14 126 profile Manelise Consultants The mission of Manelise Consultants is to provide the customer with all industrial and commercial cleaning services in an environmentally sound, completely trustworthy and professional manner. Manelise Consultants is a 100% black owned and managed close corporation. The business was established in March 2009 by the founder Thamsanqa Ngcobo and he is involved with the day-to-day management of the business. Manelise Consultants provides cleaning services for commercial and industrial venues. It provides end-of-year cleaning at schools, government premises, private-sector locations and private residences. Vision statement • • • The management of Manelise Consultants is • committed to cleaning services of the highest professional quality at all projects for the benefit of its clients. This is achieved through its established and effective quality-assurance procedures and practices that are tailored as necesManelise Consultants would like to expand ser- sary to the expectations of the individual client. vices to all nine provinces, especially in the supply of cleaning detergents to the commercial and industrial cleaning sector. To create a service-based company whose number-one goal is exceeding customers’ expectations. To increase the client database by 20% per year through superior services. To develop sustainable commercial and industrial cleaning services. To be the best cleaning-service company in the province. Restroom floors: Mop restroom floors using disinfectants. Scrub if necessary. Restroom fixtures: Dust vents, wipe down fixtures using disinfectants starting with mirrors, sinks and doors while working toward toilets and urinals. Carpet shampoo: Use portable upholstery cleaner in order to steam-clean carpeted areas. Stockroom floors: Dust, mop and wet mop stockroom, using auto scrubber if possible. Window cleaning: Use applicator brush to apply cleaning solution to all window surfaces. Pressure washing: Use pressure washer in order to remove gum and soil debris markings outside. Carpet/rug cleaning: Vacuum retail carpets, stairs, remove all marks using the shampoo if necessary. Kitchen: Clean the kitchen floor, tables, countertops, microwave oven, refrigerator and sink. Quality policies Business goals and objectives contact info Services Manelise Consultants specialises in the following: Warehouse industrial and commercial cleaning: Dust and mop retail floors, offices and dustbins. Auto Scrub warehouse, industrial and retail floors using shark ride-on scrubber and polishers. Key contact person: Thami Ngcobo Cell: +27 71 2860 315 Email: firstname.lastname@example.org Address: 46 Madeline Road, Morningside 4001 Website: www.mconsultants.co.za 127 KWAZULU-NATAL Business 2013/14 profile Durban Chamber of Commerce and Industry The Durban Chamber of Commerce and Industry aims to create a business environment conducive to investment and growth. The Durban Chamber of Commerce and Industry (DCCI) contributes towards creating an investment-friendly economic and business environment in eThekwini and provides services relevant to the needs of the business community. • Direct promotion via adverts in the Daily Digest, an electronic daily newsletter, free website classifieds, member-to-member discounts, print membership directory, online member directory and overall assistance with HIV and Aids policies Services The Durban Chamber of Commerce and Industry The chamber aims to achieve the following: launched a division in 2004 called the Durban • To provide an investor- and business- Chamber Foundation (DCF), a Section-21 comfriendly environment pany with the mandate of focusing on HIV and • To facilitate economic and business growth Aids intervention programmes in the workplace. • To provide relevant services to maintain and attract membership • To maintain and sustain its membership • To promote the development of small The chamber’s relationship with the local and businesses provincial governments has proven to be posi• To engage in influential advocacy on behalf tive and fruitful. The chamber has made significant input into the development of the Provincial of business Growth and Development Strategy, while maintaining a constant and constructive relationship with the leaders of the eThekwini Municipality. The DCCI provides a broad range of services and In addition, having received contributions from opportunities for businesses, especially members member companies, the chamber has made of the chamber. These include: submissions on many proposed policies that • Networking platforms/events such as break- will affect business through legislation. fast and lunch networking functions • Business support, including mentoring, basic contact info human resources advice, HIV and Aids adTel: +27 31 335 1000 vice and support, and assistance with access Fax: +27 31 332 1288 to finance and procurement opportunities Email: email@example.com • Lobbying and representation on behalf of Physical address: Chamber House, chamber members 190 Stalwart Simelane Street, Durban 4001 • Sourcing of trade leads and local or foreign Postal address: PO Box 1506, Durban 4000 suppliers or service providers Website: www.durbanchamber.co.za • Local and international credit checks Main objectives Working with government KWAZULU-NATAL Business 2013/14 128 message The importance of corporate social investment Andrew Layman, CEO of the Durban Chamber of Commerce and Industry, highlights the benefits of true committment to a cause. which points may be obtained. business to expand the market. While this mechanism has done Thus, to contribute towards an a great deal to steer business increase in the spending power towards contributing to the of consumers also makes wise upliftment of disadvantaged business sense. There is another very imporcommunities, it is the motivation, the reasons why, that really tant imperative in South Africa. tests companies. What is clear at present is that Therefore, â€˜investmentâ€™ is there is a residual suspicion of the key word, and not only be- capitalism. This is strengthened cause the result might be an by union spin, but is also supenhanced BEE score. Recent ported by perceptions of greed, events across the globe have and, in particular, several cases shown the extent to which busi- of price collusion that tainted the ness and society have an invio- ethics of the business commulable relationship. Consumers nity. In many cases, people are are not only buyers of goods, wrong when they accuse busibut also discerning judges of ness of indifference towards the companies that they sup- black economic empowerment, port. They prefer socially empa- or the failure to support the ecothetic organisations that do not nomic objectives of government. portray avarice and exploitation. Many companies are dedicated These are companies that have to the economic and social proheart and soul and have learnt gress of the country, but some the value of being respectable are less enthusiastic. The latter corporate citizens. Thus the as- make the headlines and contribsociation of a brand with this ute towards the lack of trust in kind of image is invaluable, and business as a whole. If business will become even more so as is to be trusted, it must be honthe market becomes more sen- est and committed in its investsitive to the so-called triple bot- ment in social development. tom line. Even at a more superFor more than one reason, ficial level, it is in the interests of therefore, this is a matter of in- C orporate social investment (CSI) has had various different names over time. Some still refer to it as corporate social responsibility which, in focusing on the matter of conscience, fails to highlight the business value of giving support to the people who constitute the market. Within the context of broad-based black economic empowerment, it is included in the category of socio economic development and is often viewed as a welfare grant to some project or projects by read more Visit: www.frontiermarketnetwork.com/article/1137 129 KWAZULU-NATAL Business 2013/14 interview Networking is key Andrew Layman, CEO of the Durban Chamber of Commerce and Industry, talks to KwaZulu-Natal Business about the benefits of belonging to a business chamber. Please give an overview of the chamber’s services in the province. Andrew Layman biography Chief Executive Officer of the Durban Chamber, Andrew Layman, has had 15 years of leadership in the chamber movement. He was formally a teacher and headmaster who had become well known within teacher union circles. He recently completed an M Com (Leadership) degree at UKZN. This had a special emphasis on local economic development, knowledge that serves him well within the chamber’s obligation to influence the growth of Durban’s economy. He writes regular newspaper columns on business matters. The chamber’s membership consists mostly of businesses located in the eThekwini Municipality. The principal function of a chamber of commerce is advocacy, and the Durban Chamber is committed to representing the views of business to all levels of government. At the same time, member companies expect services and support that add value to their enterprises. These expectations are met by the provision of important business information and a range of services that may be accessed, such as mediation and BBBEE verification. The chamber has a focus on enterprise development through its SMME Desk and seeks to stimulate the development of this sector. Numerous networking functions offer opportunities for member companies to profile their businesses, while the chamber has a programme of high-profile business events, such as its annual dinner and the annual Exporter of the Year Awards. Is membership open to all? Membership is open to any business enterprise, from the very smallest to the largest. The current membership stands at 2 800 companies. Please highlight some of the networking events that the chamber holds. What are the benefits of these events? Networking is the least-expensive way of marketing a business, especially if the face-to-face engagement is augmented by the effective use of social media. Regular early morning Coffee Connection functions allow members to meet one another and provide information about their businesses. The chamber communicates daily via its electronic newsletter and is expanding its social networking activity. Other important events include the Power Connections Luncheons that are held periodically. They are addressed by high-profile business people and provide good networking opportunities. KWAZULU-NATAL Business 2013/14 130 focus Entrepreneur to lead DCCI The Durban Chamber of Commerce and Industry is pleased to announce the election of Akash Singh as its President-elect. A kash Singh succeeded Thato Tsautse at the helm of South Africa’s premier metropolitan chamber immediately after the Annual General Meeting held on 9th April. Following a very successful career in the accountancy and banking professions, Akash started his own company, Sigma International, from scratch in 2003. An impressive pedigree Akash is a registered chartered accountant and has completed his MBA. He is the chief executive officer at Sigma International, a Global consulting business with offices in South Africa and the US. Akash is at the forefront of local (and global) economic development for small, medium and large businesses in KwaZuluNatal. Prior to starting Sigma International, Akash was the general manager: products at Nedcor as well as general manager: finance at BoE Bank. Akash has extensive experience in business/strategic plan development, business mentoring, consulting and business development, coupled with strong commercial skills, particularly with regard to business turnarounds. He has trained in excess of 3 000 small, medium and large businesses on various practical subjects. He is also highly active at the Durban Chamber of Commerce, being nominated as vice president (Finance) on the Durban Chamber of Commerce and Industry’s Board of Directors for the last five years Akash has been selected as a representative to PUM, a Netherlands government programme that provides global mentorship, and he is a member of the council (and board) of the South African Chambers of Commerce and Industry (SACCI). Akash Singh time to give valuable guidance to the chamber in respect of its finances and operations. He is relentless in his pursuit of success and he will continue to be fully committed to the task of leading the DCCI to new heights,’ she said. Andrew Layman, CEO of the chamber said, ‘Akash’s own career and qualifications are inspirational and I look forward to serving under his leadership.’ Other leadership positions have also been determined. The progress of this enterprise is attributable to his strong entre- Kwanele Gumbi will be deputy preneurial spirit, his passion for small business development and, president, while the three vice by his own admission, networking and business opportunities presidents will be Lingiwe arising out of his membership of the chamber. Nyamande (Finance), Mike The former president of the chamber said that his election is Jackson and Zeph Ndlovu. thoroughly well-deserved. ‘Akash has sacrificed considerable From strength to strength 131 KWAZULU-NATAL Business 2013/14 listings South African National Government An overview of South Africa’s national government departments. S outh Africa is a constitutional democracy with a three-tier system of government and an independent judiciary. The three tiers of government – national, provincial and local – all have legislative and executive authority in their own spheres, and are defined in the Constitution as ‘distinctive, interdependent and interrelated’. Legislative authority is vested in parliament, which is situated in Cape Town and consists of two houses, the National Assembly and the National Council of Provinces. Parliament is bound by the Constitution and must act within its limits. The president, elected by the National Assembly from among its members, is the executive head of state and leads the cabinet. The president may not serve more than two five-year terms in office. The cabinet consists of the president, the deputy president and ministers. State institutions created to support constitutional democracy are the Public Protector; the Human Rights Commission; the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities; the Commission for Gender Equality; the AuditorGeneral and the Electoral Commission. Performance, Monitoring and Evaluation in the Presidency Minister: Collins Chabane Physical address: Room 116, 2nd Floor, West Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5331/4 Fax: 012 321 8870 Email: firstname.lastname@example.org Website: www.thepresidency.gov.za The Presidency President: Jacob Gedleyihlekisa Zuma Deputy President: Kgalema Motlanthe Departments in the Presidency National Planning Commission Minister: Trevor Manuel Physical address: Room 242, 2nd Floor, East Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 300 5795 Email: email@example.com Website: www.thepresidency.gov.za kwazulu-natal Business 2013/14 National Government Departments Dept of Agriculture, Forestry and Fisheries Minister: Tina JoematPettersson Physical address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria Tel: +27 12 319 7319 Fax: +27 12 321 8558 Email: firstname.lastname@example.org Website: www.daff.gov.za 132 listings Department of Arts and Culture Minister: Paul Mashatile Physical address: 10th Floor, Kingsley Centre, 481 Church str, cornernr Steve Biko & Pretorius streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3006 Fax: +27 12 440 4485 Email: email@example.com Website: www.dac.gov.za Department of Basic Education Minister: Angelina Motshekga Physical address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X895, Pretoria 0001 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Email: firstname.lastname@example.org Website: www.education.gov.za Department of Communications Minister: Dina Pule Physical address: Block 3, Nkululeko House, 33 Iparioli Office Park, 399 Duncan Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8292 Fax: +27 12 362 6915 Email: email@example.com Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs Minister: Richard Baloyi Physical address: 87 cnr Hamilton and Proes streets, Arcadia, Pretoria 0001 Postal address: Private Bag X804, Pretoria 0001 Tel: +27 12 334 0705 Fax: +27 12 326 4478 Email: firstname.lastname@example.org Website: www.cogta.gov.za Department of Correctional Services Minister: Sibusiso Ndebele Physical address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Email: email@example.com Website: www.dcs.gov.za Department of Defence and Military Veterans Minister: Nosiviwe MapisaNqakula Physical address: cnr Delmas Avenue & Nossob streets, Erasmuskloof, Pretoria Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 Fax: +27 12 347 0118 Email: firstname.lastname@example.org Website: www.dod.mil.za Department of Economic Development Minister: Ebrahim Patel Physical address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Email: email@example.com Website: www.economic.gov.za Department of Energy Minister: Elizabeth Peters Physical address: Travenna Office Campus, 75 Meintjies & Schoeman str, Pretoria Postal address: Private Bag X646, Pretoria 0001 Tel: +27 12 444 4265 Fax: +27 12 444 4505 Email: firstname.lastname@example.org Website: www.energy.gov.za 133 kwazulu-natal Business 2013/14 listings Department of Environmental Affairs Minister: Edna Molewa Physical address: North Tower, Fedsure Forum Building, cnr Pretorius and Lilian Ngonyi streets, Pretoria Postal address: Private Bag X447, Pretoria 001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.environment.gov.za Department of Health Minister: Aaron Motsoaledi Physical address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8085/81 Fax: +27 12 395 9165 Email: firstname.lastname@example.org Website: www.doh.gov.za Department of Higher Education and Training Minister: Blade Nzimande Physical address: Sol Plaatje House, 123 Schoeman Street, Pretoria Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 Fax: +27 12 323 5618 Email: email@example.com Website: www.dhet.gov.za Department of Home Affairs Minister: Grace Naledi Mandisa Pandor Physical address: FSI Building, 909 Arcadia Street, Hatfield, 0083 Postal address: Private Bag X741, Pretoria 0001 Tel: +27 12 432 6622 Fax: +27 12 432 6637 Email: firstname.lastname@example.org Website: www.home-affairs.gov.za kwazulu-natal Business 2013/14 Department of Human Settlements Minister: Tokyo Sexwale Physical address: Govan Mbeki House, 240 Walker Street, Sunnyside, Pretoria Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Email: email@example.com Website: www.dhs.gov.za Department of International Relations and Cooperation Minister: Maite Mashabane Physical address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 0431 Fax: +27 12 323 1502 Email: firstname.lastname@example.org Website: www.dirco.gov.za Department of Justice and Constitutional Development Minister: Jeffrey Radebe Physical address: Salu Building, 28th Floor, cnr Thabo Sehume and Francis Board streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 Fax: +27 12 315 1749 Email: email@example.com Website: www.justice.gov.za Department of Labour Minister: Mildred Oliphant Physical address: 215 Laboria House, cnr Schoeman and Paul Kruger streets, Pretoria Postal address: Private Bag X117, Pretoria 0001 Tel: +27 12 392 9620 Fax: +27 12 320 1942 Email: firstname.lastname@example.org Website: www.labour.gov.za 134 listings Department of Mineral Resources Minister: Susan Shabangu Physical address: 4th Floor, Block 2C, Trevenna Campus, cnr Meintjies and Schoeman streets, Sunnyside Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3999 Fax: +27 12 444 3145 Email: email@example.com Website: www.dmr.gov.za Department of Police Minister: Nathi Mthethwa Physical address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2819 Email: firstname.lastname@example.org Website: www.saps.gov.za Department of Public Enterprises Minister: Malusi Gigaba Physical address: Suite 401, 1090 Infotech Building, Arcadia Street, Hatfield, Pretoria Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1098 Fax: +27 12 431 1039 Email: email@example.com Website: www.dpe.gov.za Department of Public Service and Administration Minister: Lindiwe Sisulu Physical address: Batho Pele House, 116 Proes Str, Pretoria Postal address: Private Bag X916, Pretoria 0001 Tel: +27 12 336 1063 Fax: +27 12 326 7802 Email: firstname.lastname@example.org Website: www.dpsa.gov.za Department of Public Works Minister: Thembelani (Thulas) Nxesi Physical address: 6th Floor, AVN Building, cnr Skinner and Andries streets, Pretoria Postal address: Private Bag X229, Pretoria 0001 Tel: +27 12 406 1967 Fax: +27 12 310 5182 Email: email@example.com Website: www.publicworks.gov.za Department of Rural Development and Land Reform Minister: Gugile Nkwinti Physical address: 3rd Floor, Old Building, 184 Jacob Mare and Paul Kruger streets, Pretoria Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 8911 Fax: +27 12 323 3306 Email: firstname.lastname@example.org Website: www.ruraldevelopment.gov.za Department of Science and Technology Minister: Derek Hanekom Physical address: 3rd Floor, Building No 53, CSIR Campus, Meiring Naude Road, Brummeria, Pretoria Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6798 Fax: +27 12 349 1041/8 Email: email@example.com Website: www.dst.gov.za Department of Social Development Minister: Bathabile Olive Dlamini Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria Postal address: Private Bag X901, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 12 321 2502 Website: www.dsd.gov.za 135 kwazulu-natal Business 2013/14 listings Department of State Security Minister: Siyabonga Cyprian Cwele Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700/57/91 Fax: +27 12 367 0749 Website: www.nia.dov.za Department of Sport and Recreation South Africa Minister: Fikile Mbalula Physical address: Regent Building, cnr Queen and Vermeulen streets, Pretoria Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 0795 Website: www.srsa.gov.za Department of Tourism Minister: Marthinus van Schalkwyk Physical address: 10th Floor, North Tower, Fedsure Forum Building, cnr Pretorius and Van Der Walt streets, Pretoria Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 310 3611 Fax: +27 12 322 0082 Email: firstname.lastname@example.org Website: www.tourism.gov.za Department of Trade and Industry Minister: Rob Davies Physical address: Block A, 3rd Floor, the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 Fax: +27 12 394 0337 Email: email@example.com Website: www.thedti.gov.za kwazulu-natal Business 2013/14 Department of Transport Minister: Benedict Martins Physical address: Room 4111, Forum Building, cnr Struben and Bosman streets, Pretoria Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3860 Fax: +27 12 328 3194 Email: firstname.lastname@example.org Website: www.transport.gov.za Department of Water Affairs Minister: Edna Molewa Physical address: 1035 Sedibeng Building, 185 Schoeman street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.dwa.gov.za Department of Women, Youth, Children and People with Disabilities Minister: Lulu Xingwana Physical address: 36 Hamilton street, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 359 0011 Fax: 086 676 3390 (SA only) Email: firstname.lastname@example.org Website: thepresidency.gov.za National Treasury Minister: Pravin Jamnadas Gordhan Physical address: 40 Church Square, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 315 5372 Fax: +27 12 323 3262 Email: email@example.com Website: www.treasury.gov.za 136 listings Government Communication and Information System (GCIS) Physical address: 356 Midtown Building, cnr Sisulu and Madiba streets, Pretoria Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 314 2127 Fax: +27 12 325 2030 Email: firstname.lastname@example.org Website: www.gcis.gov.za Independent Complaints Directorate (ICD) Physical address: CT Forum Building, 114 Vermeulen Street, Pretoria Postal address: Private Bag X941, Pretoria 0001 Tel: +27 12 399 0000 Fax: +27 12 399 0204 Email: email@example.com Website: www.icd.gov.za Public Service Commission Physical address: Commission House, cnr Hamilton and Ziervogel streets, Arcadia, Pretoria Postal address: Private Bag X121, Pretoria 0001 Tel: +27 12 352 1000 Fax: +27 12 325 8382 Email: firstname.lastname@example.org Website: www.psc.gov.za Police Civilian Secretariat Physical address: 217 Pretorius Street, Vanerkom Building, Pretoria Postal address: Private Bag X922, Pretoria 0001 Tel: +27 12 393 2520 Fax: +27 12 393 2538 Email: email@example.com or firstname.lastname@example.org Website: www.nationalsecretariat.gov.za South African Revenue Service Physical address: Lehae la Sars Building, 299 Bronkhorst Street, New Muckleneuk, Pretoria Postal address: Private Bag X923, Pretoria 0001 Tel: +27 12 317 2000 Fax: +27 10 208 5005 Website: www.sars.gov.za Statistics South Africa Physical address: The De Bruyn Park, 170 Andries Street, Pretoria Postal address: Private Bag X44, Pretoria 0001 Tel: +27 12 310 8911 Fax: +27 12 310 8500 Email: email@example.com Website: www.statssa.gov.za National coat of arms The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance. the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct / Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth. 137 kwazulu-natal Business 2013/14 profile Department of Labour’s Compensation Fund The Department of Labour’s Compensation Fund is a reputable provider of compensation for occupational injuries and diseases. Constitutional mandate T he mandate of the Compensation Fund is derived from Section 27(1)(c) of the Constitution of the Republic of South Africa. In terms of Shadrack Mkhonto, this act, all South Compensation Fund Africans have a right to social security. The Compensation Fund is then mandated to provide social security to all injured and diseased employees. for a minimum assessment to ensure that the assessment is not less than the administration costs incurred. Vision To be an employer of choice and an internationally reputable provider of compensation for occupational injuries and diseases, rehabilitation and reintegration services. Mission • • Legislative mandate The Compensation Fund is a public entity of the Department of Labour. The Fund administers the Compensation for Occupational Injuries and Diseases Act (130/1993 as amended by the COIDA 61/1997). The main objective of the act is to provide compensation for disablement caused by occupational injuries, or diseases sustained or contracted by employees, or for death resulting from such injuries or diseases, and to provide for matters connected therewith. The Fund generates its revenue from levies paid by employers, which consist mainly of annual assessments paid by registered employers on a basis of a percentage or fixed rate of the annual earnings of their employees. The Compensation for Occupational Injuries and Diseases Act, however, makes provision KWAZULU-NATAL Business 2013/14 • • • To utilise and leverage automated solutions to provide efficient, quality, client-centric and accessible Compensation Fund services To ensure effective rehabilitation and reintegration services, through reputable programmes To ensure financial viability through efficient collections and prudent investments To promote job-creation initiatives through socially responsible investments To develop and retain a competent and content workforce Values • • • • • Treating employees with care, dignity and respect Respecting and promoting client-centred services, accountability, integrity and ethical behaviour Learning and development The Batho Pele principles The principles of the department’s service charter 138 profile The department inculcates these values through its performance management system. Description of main services • • • • • Payment of reasonable medical expenses to the injured employees Payment of Temporary Total Disablement (TTD) for loss of earnings when the employee was not working due to injury sustained on duty Payment of Permanent Disablement (PD) to the employee who sustained up to 30% PD Payment of monthly pension to the employee who sustained more than 30% PD Payment of monthly pension to widow/ widower and children up to 18 years of age Department of Labour staff with a recipient of the Compensation Fund. °° The South African Police Service °° Any worker guilty of willful misconduct, unless they are seriously disabled or killed To provide for compensation for disablement °° Anyone employed outside of South Africa for 12 or more continuous months caused by occupational injuries or diseases sustained or contracted by employees in the course °° Workers working mainly outside of South Africa and only temporarily employed in of their employment, or for death resulting from the country such injuries or diseases, and to provide for The full act can be read online at: matters connected therewith. https://www.labour.gov.za Application The Compensation for Occupational Injuries All forms required when registering with the fund, and Diseases Act applies to all employers and when applying for compensation, can be and their casual and full-time workers who, found online at: as a result of a workplace accident or work- https://www.labour.gov.za related disease: • Are injured, disabled or killed • Become ill The department is embarking on the following This excludes: • Workers who are totally or partially disabled projects in order to increase the efficiency of for less than three days its services: • Domestic workers • Decentralisation of services aimed at ensur• Anyone receiving military training ing that the fund’s services are easily accessible to clients and stakeholders Members of: °° The South African National Defence • Restructuring of the fund to ensure that Force service delivery is improved Compensation for Occupational Injuries and Diseases Act Programmes/projects/initiatives 139 KWAZULU-NATAL Business 2013/14 profile • • Development of the Rehabilitation, Reintegration and Return-to-work Policy for employees who sustained occupational injuries and/or contracted diseases Proposal to amend the Compensation for Occupational Injuries and Diseases Act (COIDA) Entities liable for registration • • Benefits of registration Employers Employers are protected against civil claims if employees get injured on duty or contract occupational diseases. Employees Employees who are injured on duty or who contracted occupational diseases can claim compensation for temporary or permanent disablement according to the degree of disablement and death. Reasonable medical aid expenses arising out of an injury on duty are payable for a period of two years, or longer if further medical treatment is needed, and if it will reduce the extent of the disability. • All employers who employ one or more parttime or full-time employees must register with the Compensation Fund. A separate registration is necessary for each separate branch of a business, unless an arrangement for combined registration has been made. An employer should register with the Compensation Fund within seven days after the first employee was employed. Claiming compensation – workers When workers want to claim they must use the following steps: Step 1: Fill in the form Workers must report their injury or disease to their supervisor or employer immediately. Their employer must report it to the Compensation Fund and send in the necessary forms. Step 2: Get forms from the doctor Workers must get the W.Cl.2 or W.Cl.1 form from their employer and take it to the doctor when they go for a visit. After the doctor has filled in the form, workers must take it back to their employer. Workers must take any other forms the doctor gives them to their employer. Step 3: Keep in touch with the employer Workers must let their employers know when their address changes and keep in touch with them. Workers’ compensation will be sent to their employer’s address, so it is important that their employer can find them. If employers do not send in the forms or the claims are taking an inordinate time to be processed, workers must contact the nearest labour centre and report it. Assessments An assessment is the annual payment which is paid by the employers to the Compensation Fund to cover employees who are injured at work. • The revenue of the Fund consists mainly of annual assessments paid by registered employers on the basis of a percentage of the annual earnings of their employees. The rate is fixed per industry subclass. KWAZULU-NATAL Business 2013/14 140 listings Department of Labour – Compensation Fund A guide to the key provincial contact people in the Department of Labour’s Compensation Fund, which is related to the Compensation for Occupational Injuries and Diseases Act (COIDA). Eastern Cape Tamsanqa Mgudane Assistant Director: COIDA Tel: +27 43 702 7525 Cell: +27 82 383 8111 Limpopo Jacob Mpulwane Assistant Director: COIDA Tel: +27 15 290 1699 Cell: +27 82 886 6396 Free State Anne-Marie Marais Assistant Director: COIDA Tel: +27 51 505 6248 Cell: +27 82 902 6910 Mpumalanga Lerato Ramashobane Assistant Director: COIDA Tel: +27 13 655 8725 Cell: +27 82 908 2740 Gauteng: Johannesburg Patricia Mafata Assistant Director: COIDA Tel: +27 11 853 0478 Northern Cape Carol-Anne Dipico Assistant Director: COIDA Tel: +27 21 441 8054 Cell: +27 82 743 0848 Gauteng: Pretoria Boipelo Derane Assistant Director: COIDA Tel: +27 12 309 5062 Cell: +27 78 801 1151 North West Tsholo Esiang Assistant Director: COIDA Tel: +27 18 387 8143 Cell: +27 82 908 1943 KwaZulu-Natal Nomfi Cweba Assistant Director: COIDA Tel: +27 31 366 2033 Cell: +27 82 887 3154 Western Cape Thozama Ngonyama Deputy Director: Business Services – Compensation Commissioner Tel: +27 21 441 8054 Cell: +27 82 438 6975 141 KWAZULU-NATAL Business 2013/14 listings KwaZulu-Natal Provincial Government A guide to KwaZulu-Natalâ€™s provincial departments and their MECs. www.kwazulunatal.gov.za Office of the Premier Premier: Dr ZL Mkhize Physical address: 5th Floor, Telkom Building, 300 Langalibalele Street, Pietermaritzburg 3201 Tel: +27 33 341 3300 Fax: +27 33 342 7368 Email: firstname.lastname@example.org Website: www.kwazulunatal.gov.za Department of Community Safety and Liaison MEC: Thembinkosi Willies Mchunu Physical address: 179 Jabu Ndlovu Street, Pietermaritzburg 3201 Tel: +27 33 342 2639 Fax: +27 33 342 8824 Email: email@example.com Website: www.kzncomsafety.gov.za Department of Agriculture, Environmental Affairs and Rural Development MEC: Dr Bonginkosi Meshack Radebe Physical address: 1 Cedara Executive Building, Cedara College, Cedara Road, Pietermaritzburg 3201 Tel: +27 33 343 8240 Fax: +27 33 343 8255 Email: firstname.lastname@example.org Website: www.kzndae.gov.za Department of Cooperative Governance and Traditional Affairs MEC: Nomsa Dube Physical address: FNB House, Redlands Estate, Wembley, Pietermaritzburg 3201 Tel: +27 33 264 5500 Fax: +27 33 392 0027 Email: email@example.com Website: www.kzncogta.gov.za Department of Arts and Culture MEC: Ntombikayise Sibhidla-Saphetla Physical address: 222 Jabu Ndlovu Street, Pietermaritzburg 3201 Tel: +27 33 342 6300 Fax: +27 33 342 3613 Email: firstname.lastname@example.org Website: www.kzndac.gov.za Department of Economic Development and Tourism MEC: Mike Mabuyakhulu Physical address: Marine Building, 22 Gardner Street, Durban 4000 Tel: +27 31 310 5300 Fax: +27 31 310 5416 Email: email@example.com Website: www.kznded.gov.za KWAZULU-NATAL Business 2013/14 142 listings Department of Education MEC: Senzo Mchunu Physical address: Anton Lembede Building, 247 Burger Street, Pietermaritzburg 3201 Tel: +27 33 355 2450 Fax: +27 33 394 0893 Email: firstname.lastname@example.org Website: www.kzneducation.gov.za Email: email@example.com Website: www.kzndsr.gov.za Department of Social Development MEC: Weziwe Gcotyelwa Thusi Physical address: 208 Hoosen Haffejee Street, Pietermaritzburg 3201 Tel: +27 33 341 9600 Fax: +27 33 342 4157 Email: firstname.lastname@example.org Website: www.kznsocdev.gov.za Department of Health MEC: Dr Sibongiseni Maxwell Dhlomo Physical address: 1st Floor, 330 Langalibalele Street, Pietermaritzburg 3201 Tel: +27 33 395 2016 Fax: +27 33 394 0597 Email: email@example.com Website: www.kznhealth.gov.za Department of Transport MEC: Thembinkosi Willies Mchunu Physical address: 4th Floor, Executive Building, 172 Burger Street, Pietermaritzburg 3201 Tel: +27 33 342 2626 Fax: +27 33 342 8824 Email: firstname.lastname@example.org Website: www.kzntransport.gov.za Department of Human Settlements MEC: Ravi Pillay Physical address: 455A Jan Smuts Highway, Mayville, Durban 4000 Tel: +27 31 261 8997 Fax: +27 31 261 8157 Email: email@example.com Website: www.kznhousing.gov.za KwaZulu-Natal Legislature Speaker: Neliswa Nkonyeni Physical address: 239 Langalibalele Street, Pietermaritzburg 3201 Tel: +27 33 355 7600 Fax: +27 33 355 7767 Email: firstname.lastname@example.org Website: www.kznlegislature.gov.za Department of Public Works MEC: Ravi Pillay Physical address: 455A Jan Smuts Highway, Mayville, Durban 4001 Tel: +27 31 261 8997 Fax: +27 31 261 8157 Email: email@example.com Website: www.kznworks.gov.za Provincial Treasury MEC for Finance: Ina CronjĂŠ Physical address: 2nd Floor, Natalia Building, 330 Langalibalele Street, Pietermaritzburg 3201 Tel: +27 33 846 6800 Fax: +27 33 846 6801 Email: firstname.lastname@example.org Website: www.kzntreasury.gov.za Department of Sport and Recreation MEC: Ntombikayise Sibhidla-Saphetla Physical address: 135 Pieter Maritz Street, Pietermaritzburg 3200 Tel: +27 33 342 6300 Fax: +27 33 342 6313 143 KWAZULU-NATAL Business 2013/14 listings KwaZulu-Natal Local Government A guide to metropolitan, district and local municipalities in KwaZulu-Natal Province. South African local government has undergone considerable transformation over the past decade, as outlined in the Constitution of South Africa (1996). The Local Government: Municipal Structures Act of 1998 reduced the total number of municipalities in the country from 843 to 284 (now 283) and laid out criteria for determining whether an area should have a Category A Municipality (Metropolitan Municipalities), a Category B Municipality (Local Councils or Municipalities) or a Category C Municipality (District Municipalities). Six metropolitan municipalities were created, namely the City of Cape Town Metropolitan Municipality in the Western Cape, the City of Tshwane Metropolitan Municipality, Ekurhuleni Metropolitan Municipality and the City of Johannesburg Metropolitan Municipality in Gauteng, eThekwini Municipality in KwaZuluNatal and Nelson Mandela Bay Municipality in the Eastern Cape. Forty-seven District Municipalities were identified (KwaZulu-Natal Province has 10 district municipalities, namely Amajuba District Municipality, iLembe District Municipality, Sisonke District Municipality, Ugu District Municipality, uMgungundlovu District Municipality, uMkhanyakude District Municipality, uMzinyathi District Municipality, uThukela District Municipality, uThungulu District Municipality and Zululand District Municipality), incorporating 230 Local Municipalities (with 50 in KwaZulu-Natal). In July 2008, the Municipal Demarcation Board proposed that a number of municipalities change from Category B local municipalities to Category A Metropolitan Municipalities. The status of some of these municipalities changed after the 2011 municipal elections. Newcastle 2940 Postal address: Private Bag X6615, Newcastle 2940 Tel: +27 34 329 7200 Fax: +27 34 314 3785 Email: email@example.com Website: www.amajuba.gov.za Local municipalities encompassed Dannhauser Municipality Tel: +27 34 621 2666 Fax: +27 34 621 3114 eMadlageni (Utrecht) Municipality Tel: +27 34 331 3041 Fax: +27 34 331 4312 Newcastle Municipality Tel: +27 34 328 7600 Fax: +27 34 312 1570 eThekwini Metropolitan Municipality James Nxumalo, Mayor Physical address: 263 Dr Pixley ka Seme Street, Durban 4001 Postal address: PO Box 1014, Durban 4000 Tel: +27 31 311 1111 Fax: +27 31 311 2111 Email: firstname.lastname@example.org Website: www.durban.gov.za Amajuba District Municipality Jabu Khumalo, Mayor Physical address: Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township, KWAZULU-NATAL Business 2013/14 144 listings iLembe District Municipality SW Mdabe, Mayor Physical address: iLembe House, 59/61 Mahatma Gandhi Street, KwaDukuza 4450 Postal address: PO Box 1788, KwaDukuza 4450 Tel: +27 32 437 9300 Fax: +27 32 437 9587 Email: email@example.com Website: www.ilembe.gov.za Local municipalities encompassed KwaDukuza Municipality Tel: +27 32 437 5000 Fax: +27 32 437 5098 Mandeni (eNdondakusuka) Municipality Tel: +27 32 456 8200 Fax: +27 32 456 2504 Maphumulo Municipality Tel: +27 32 481 2047 Fax: +27 32 481 2317 Ndwedwe Municipality Tel: +27 32 532 1089 Fax: +27 32 532 1071 uBuhlebezwe Municipality Tel: +27 39 834 7700 Fax: +27 39 834 1168 uMzimkhulu Municipality Tel: +27 39 259 5000 Fax: +27 39 259 0427 Ugu District Municipality NH Gumede, Mayor Physical address: 28 Connor Street, Port Shepstone 4240 Postal address: PO Box 33, Port Shepstone 4240 Tel: +27 39 688 5700 Fax: +27 39 682 4820 Email: firstname.lastname@example.org Website: www.ugu.gov.za Local municipalities encompassed Ezinqoleni Municipality Tel: +27 39 534 1574 Fax: +27 39 534 1585 Hibiscus Coast Muncipality Sisonke District Municipality ME Ndobe, Mayor Physical address: 40 Main Street, Ixopo 3276 Postal address: Private Bag X501, Ixopo 3276 Tel: +27 39 834 8700 Fax: +27 39 834 1701 Email: email@example.com Website: www.sisonke.gov.za Local municipalities encompassed Greater Kokstad Municipality Tel: +27 39 797 6600 Fax: +27 39 727 3676 Ingwe Municipality Tel: +27 39 833 1038 Fax: +27 39 833 1179 Kwa Sani Municipality Tel: +27 33 702 1060 Fax: +27 33 702 1148 Tel: +27 39 688 2000 Fax: +27 39 682 0327 Umdoni Municipality Tel: +27 39 976 1202 Fax: +27 39 976 2194 uMuziwabantu Muncipality Tel: +27 39 433 1205 Fax: +27 39 433 1208 Umzumbe Municipality Tel: +27 39 972 0005 Fax: +27 39 972 0099 Vulamehlo Municipality Tel: +27 39 974 0450 Fax: +27 39 974 0432 145 KWAZULU-NATAL Business 2013/14 listings uMgungundlovu District Municipality Y Bhamjee, Mayor Physical address: 242 Longmarket Street, Pietermaritzburg 3201 Postal address: PO Box 3235, Pietermaritzburg 3200 Tel: +27 33 897 6700 Fax: +27 33 342 5502 Email: firstname.lastname@example.org Website: www.umdm.gov.za Local municipalities encompassed Impendle Muncipality Tel: +27 33 996 0771 Fax: +27 33 996 0852 Mkhambathini Municipality Tel: +27 31 785 9300 Fax: +27 31 785 1463 Mpofana Municipality Tel: +27 33 263 1221 Fax: +27 33 263 1127 Msunduzi Municipality Tel: +27 33 392 3000 Fax: +27 33 345 1637 Richmond Municipality Tel: +27 33 212 2155 Fax: +27 33 212 2102 uMngeni Muncipality Tel: +27 33 239 9200 Fax: +27 33 330 4183 uMshwathi Municipality Tel: +27 33 502 0282 Fax: +27 33 502 0286 Local municipalities encompassed Hlabisa Municipality Tel: +27 35 838 8500 Fax: +27 35 838 1015 Jozini Municipality Tel: +27 35 572 1292 Fax: +27 35 572 1266 Mtubatuba Municipality Tel: +27 35 550 0069 Fax: +27 35 550 0060 The Big Five False Bay Municipality Tel: +27 35 562 0040 Fax: +27 35 562 0988 uMhlabuyalingana Muncipality Tel: +27 35 592 0671 Fax: +27 35 592 0672 uMzinyathi District Municipality James Mthethwa, Mayor Physical address: Princess Magogo Building, 39 Victoria Street, Dundee 3000 Postal address: PO Box 1965, Dundee 3000 Tel: +27 34 219 1500 Fax: +27 34 219 1940 Email: email@example.com Website: www.umzinyathi.gov.za Local municipalities encompassed Endumeni Municipality Tel: +27 34 212 2121 Fax: +27 34 212 3856 Nquthu Municipality Tel: +27 34 271 6100 Fax: +27 34 271 6111 uMkhanyakude District Municipality SJ Vilane, Mayor Physical address: Stand 13433, Kingfisher Road, Mkuze 3965 Postal address: PO Box 449, Mkuze 3965 Tel: +27 35 573 8613 Fax: +27 35 573 8730 Email: firstname.lastname@example.org Msinga Municipality Tel: +27 33 493 0761 Fax: +27 33 493 0757 uMvoti Municipality Tel: +27 33 413 9100 Fax: +27 33 413 1659 KWAZULU-NATAL Business 2013/14 146 listings uThukela District Municipality DCP Mazibuko, Mayor Physical address: 33 Forbes Street, Ladysmith 3370 Postal address: PO Box 116, Ladysmith 3370 Tel: +27 36 638 5100 Fax: +27 36 637 5608 Email: email@example.com Website: www.uthukeladm.co.za Local municipalities encompassed Emnambithi/Ladysmith Municipality Tel: +27 36 637 2231 Fax: +27 36 631 1400 Imbabazane Municipality Tel: +27 36 353 0681 Fax: +27 36 353 6661 Indaka Municipality Tel: +27 34 261 1000 Fax: +27 34 261 2035 Okhahlamba Municipality Tel: +27 36 448 1076 Fax: +27 36 448 1986 Umtshezi Municipality Tel: +27 36 342 7800 Fax: +27 36 352 5829 VZ kaMagwaza-Msibi, Mayor Physical address: B400 Gagane Street, Ulundi 3838 Postal address: Private Bag X76, Ulundi 3838 Tel: +27 35 874 5500 Fax: +27 35 874 5591 Email: firstname.lastname@example.org Website: www.zululand.org.za Local municipalities encompassed Abaqulusi Municipality Tel: +27 34 982 2133 Fax: +27 34 980 9637 eDumbe Municipality Tel: +27 34 995 1650 Fax: +27 34 995 1192 Nongoma Municipality Tel: +27 35 831 7500 Fax: +27 35 831 3152 Ulundi Municipality Tel: +27 35 874 5100 Fax: +27 35 870 1105 uPhongola Municipality Tel: +27 34 413 1223 Fax: +27 34 413 1706 Mthonjaneni Municipality Tel: +27 35 450 2082 Fax: +27 35 450 3224 Nkandla Municipality Tel: +27 35 833 2000 Fax: +27 35 833 0920 Ntambanana Municipality Tel: +27 35 792 7092 Fax: +27 35 792 7094 uMhlathuze Municipality Tel: +27 35 907 5100 Fax: +27 35 907 5444 uMlalazi Muncipality Tel: +27 35 473 3474 Fax: +27 35 474 4733 Zululand District Municipality uThungulu District Municipality TBV Mchunu, Mayor Physical address: Uthungulu House, Kruger Rand Road, Richards Bay 3900 Postal address: Private Bag X1025, Richards Bay 3900 Tel: +27 35 799 2500 Fax: +27 35 789 6363 Email: email@example.com Website: www.uthungulu.org.za Local municipalities encompassed Mbonambi Municipality Tel: +27 35 580 1421 Fax: +27 35 580 1141 147 KWAZULU-NATAL Business 2013/14 listings MOZAMBIQUE MUNICIPALITIES IN KWAZULU-NATAL SWAZILAND Mpumalanga Umhlabuyalingana uPhongolo Jozini eDumbe eMadlageni Newcastle Abaqulusi uMkhanyakude Nongoma KZDMA27 The Big Five False Bay Free State Amajuba Dannhauser Endumeni Emnambithi/ Ladysmith Zululand KZDMA27 Ulundi Nqutu Hlabisa Mtubatuba KZDMA23 uMzinyathi Indaka Msinga Nkandla Mthonjaneni Ntambanana uThukela Ukhahlamba Mbonambi uMtshezi Imbabazane KZDMA23 uMvoti Mpofana uMngeni uMshwathi uThungulu uMlalazi uMhlathuze LESOTHO KZDMA22 Maphumulo KwaDukuza Mandeni uMgungundlovu KZDMA43 Kwa Sani Impendle Msunduzi Richmond Mkhambathini iLembe Maphumulo Ingwe eThekwini Metropolitan Municipality INDIAN OCEAN Sisonke uMzimkulu Greater Kokstad uBuhlebezwe Vulamehlo N Umdoni Ugu Umzumbe uMuziwabantu Ezinqoleni Hibiscus Coast Local Municipality Boundary Metropolitan/District Municipality Boundary Eastern Cape District Municipality Local Municipality Amajuba uMlalazi KWAZULU-NATAL Business 2013/14 148 profile Emnambithi/Ladysmith is situated halfway between South Africa’s key domestic markets in Gauteng, Bloemfontein and the major export harbour in Durban. The N3 and the N11 National Roads provide easy access to all neighbouring provinces and countries. Vision By 2020, the Emnambithi/ Ladysmith Municipality will be KwaZulu-Natal’s most vibrant, industrial, commercial, trade and tourism interlink, where all residents enjoy a prosperous, caring, safe and secure environment that promotes cultural diversity. Ladysmith is alive and thriving. It has retained its pleasant country atmosphere with little of the hustle and bustle expected of an industrial giant. The Municipality offers a competitive Industrial Incentive Scheme ranging from a 15 –year rates rebate, bulk electricity discount etc. Mayor: Cllr M.V. Madlala Main attractions Ladysmith has a well-established commercial and social infrastructure. Its residential areas are situated away from the commercial and industrial centres to ensure quiet and pleasant living conditions, it has an array of top schools and Higher Education Institutes which include FET Colleges and nursing schools. The town has various attraction sites like the Longtom Cannon in front of the Majestic and Historical Town Hall, the Soofie Mosque, and hosts the major events like the Ladysmith Show, Arthur Creswell Marathon, Van Reenen/Swirnburne Yenza Community Festival and many more. Mission The Majestic and Historical Town Hall featuring the Longtom Cannon To provide a well serviced, safe, healthy and economically viable environment that enables all residents to take action so that all communities enjoy a high quality of life. An attractive investment destination Emnambithi/Ladysmith is known for its history in the promotion of industrial development since the early 19th century and recently for promoting SMMEs. An industrial and commercial centre, Ladysmith rests on the open flood planes of the Klip River in the foothills of the mighty Drakensberg. It forms a natural gateway to many mountain resorts and the Okhahlamba Drakensberg World Heritage Site, set in some of the most scenic areas in the country. Ladysmith forms the heart of the KwaZulu-Natal, ‘The Kingdom of the Zulus’. Ladysmith offers several industrial areas, such as Acaciavale, Danskraal, Colenso and the largest being the Ithala Industrial Estate, a short distance from the CBD. Factories, industrial sites and affordable labour are readily available. Industrial stand sizes vary from 2 000 to 8 000m2. Subdivisions and stand sizes can be negotiated to meet your particular requirements. Assistance will be provided with rezoning and EIA applications. CONTACT DETAILS Key personnel Cllr M.V. Madlala, Mayor Key contact people Mr M.P. Khathide, Municipal Manager E-mail: firstname.lastname@example.org Mr P.S. Mkhize, Executive Manager, Development, Planning and Human Settlements E-mail: email@example.com Mr L.H. Le Roux, Assistant Manager, Development, Planning and Human Settlements E-mail: firstname.lastname@example.org/ email@example.com Physical address: Lister Clarence Building 205 Murchison Street, Ladysmith, 3370 Tel: +27 36 637 2104/2090 Fax: +27 36 637 3980 149 Website: www.ladysmith.co.za KWAZULU-NATAL Business 2013/14 interview Ripe for investment Cllr Yusuf Suleman Bhamjee, Mayor of uMgungundlovu District Municipality, highlights some of the advantages that potential investors will reap from the area. How is the municipality encouraging or supporting economic growth in the area? Firstly, the municipality embarked on a benchmarking exercise in order to do a rigorous introspection into its strengths and weaknesses, to take advantage of opportunities and take cognisance of threats in the market economy. As a result of this exercise, plans are now afoot to beef up the economic-development component as well as establish the District Economic Council and, ultimately, the District Economic Development Agency. This will drive the economic agenda in the Midlands Region towards a sizeable contribution to the gross domestic product in the province. Inspired by the National Development Plan (NDP) and the Provincial Growth and Development Plan (PGDP), the municipality is poised to produce its District Growth and Development Plan (DGDP), following a successful Growth and Development Summit hosted in March 2013. This DGDP will be underpinned by the five strategic pillars of alignment with the NDP and PGDP, with agriculture and environment being at the centre of balanced and sustainable development, the green economy, strategic partnerships and social contact, as well as monitoring and evaluation. With the coverage of access to water and electricity hovering above 90% and counting, the municipality is poised to achieve 100% access to sanitation within the next 18 months. What does your area have to offer potential investors? In partnership with local municipalities and the Department of Economic Development and Tourism, our municipality is currently engaging with business formations and potential investors with the view to incentivising business. Depending on the outcome of the current engagement processes, this could take the form of bulk tariffs, packaging of industrial estates and the establishment of a special economic zone focusing on specific sectors in which the municipality enjoys comparative and competitive advantages. Cllr Yusuf Suleman Bhamjee biography Cllr Yusuf Suleman Bhamjee is the Mayor of uMgungundlovu District Municipality. In 2008, he was deployed as Mayor to turn around the negative image of the district. Subsequently, the municipality has received five unqualified audits in a row. It is now financially and politically stable and focuses on excellent service delivery. This resulted in the Mayor receiving the award for it being Best District/Metro Municipality in the province. read more Visit: http://www.umdm.gov.za 150 KWAZULU-NATAL Business 2013/14 profile uMgungundlovu District Municipality The region is home to a wide variety of investment opportunities. uMgungundlovu District Municipality is a complex natural environment with numerous resources offering unique development opportunities. of the spectacular Drakensberg-Ukhahlamba Mountain Park underscores the immense potential in the area for ecologically sustainable tourism enterprises – particularly those focused on indigenous rock art, prolific bird life and fly-fishing. uMshwathi Local Municipality Good rainfall and fertile soils result in the area contributing 40% of the total sugar cane and maize production of uMgungundlovu District Municipality. The Albert Falls Dam, renowned for its excellent bass fishing, offers investment opportunities in tourism, leisure and agriculture. Msunduzi Local Municipality The area is ideally positioned as a base for manufacturing, particularly aluminium, timber and leather products. The city and its surrounds are serviced by extensive road, rail and air networks, first-world communications, and Africa’s busiest port only 45 minutes away. uMngeni Local Municipality uMngeni Municipality presents an impressive mix of manufacturing enterprises, leisure facilities and a burgeoning agricultural sector. The The area is only 30 minutes from Durban’s interimposing Howick Falls is a major tourism at- national airport and Africa’s busiest harbour. The traction, while the Karkloof Falls is proving in- area features the second-highest concentration creasingly popular. The area boasts the Cedara of poultry producers in the world, supported by Agricultural College, and lends itself to beef and a network of service suppliers, as well as pig dairy farming, timber production and the cultiva- and beef farming. tion of vegetables. Mkhambathini Local Municipality Mpofana Local Municipality Once the epicentre of a vibrant textile industry, it has a future focus on the manufacture of quality fabrics by small, medium and micro enterprises. Cattle and sheep are farmed extensively, and the area boasts some of South Africa’s best racehorse stud farms. Richmond Local Municipality In addition to investment opportunities in manufacturing enterprises linked to timber, the area’s agricultural activities centre on dairy, citrus, vegetable and sugar cane production. contact info Key contact person: Mbali Mwandla, Communications Officer Tel: +27 33 897 6742 Website: www.umdm.gov.za Impendle Local Municipality The recently proclaimed World Heritage Site 151 KWAZULU-NATAL Business 2013/14 index index Absa Business Banking������������������������������������������������������������������������������������������������������������ 110 Agribusiness Development Agency (ADA)�����������������������������������������������������������������������������������55 Airports Company South Africa (ACSA)��������������������������������������������������������������������������������������84 Black Balance Projects (Pty) Ltd�������������������������������������������������������������������������������������������������98 Collect-a-Can�������������������������������������������������������������������������������������������������������������������������������3 Durban Chamber of Commerce and Industry (DCCI)������������������������������������������������������� 128, 130 Emnambithi/Ladysmith Local Municipality��������������������������������������������������������������������������������149 Enterprise iLembe��������������������������������������������������������������������������������������������������������������������� 118 Frontier Market Network�������������������������������������������������������������������������������������������������������������54 Global Africa Network�������������������������������������������������������������������������������������������������������9, 40, 83 Hulamin��������������������������������������������������������������������������������������������������������������������������������������30 Industrial Development Corporation (IDC)����������������������������������������������������������������������������������� 47 Ithala Development Finance Corporation Limited��������������������������������������������������������������������� 122 KZN Growth Fund Managers����������������������������������������������������������������������������������������������������120 Lafarge South Africa�������������������������������������������������������������������������������������������������������������������96 Manelise Consultants��������������������������������������������������������������������������������������������������������������� 127 Nashua Communications���������������������������������������������������������������������������������������������������������106 National Department of Agriculture, Forestry and Fisheries��������������������������������������������������������34 National Department of Labour – Compensation Fund������������������������������������������������������������138 Petroleum Agency SA����������������������������������������������������������������������������������������������������������������� 61 Richards Bay Industrial Development Zone (RBIDZ)��������������������������������������������������������������IFC, 1 Small Enterprise Development Agency (Seda)�������������������������������������������������������������������������� 115 Trade & Investment KwaZulu-Natal (TIKZN)���������������������������������������������������������������� 16, 18, OBC Transnet Engineering�������������������������������������������������������������������������������������������������76, 78, 88, 90 Transnet Pipelines���������������������������������������������������������������������������������������������������������63, 64, IBC uMgungundlovu District Municipality����������������������������������������������������������������������������������������150 USB Executive Development Ltd�������������������������������������������������������������������������������������������������� 7 Vodacom��������������������������������������������������������������������������������������������������������������������������������������5 Vopak Terminal Durban (Pty) Ltd�������������������������������������������������������������������������������������������������92 KWAZULU-NATAL Business 2013/14 152 ICC Voted Africa’s Leading Conference Facility for eight years. DURBAN HARBOUR One of the largest ports in Africa. Our World-Class Infrastructure is ready to support your business. RICHARDS BAY PORT Richards Bay is SA’s premier bulk port and the most modern. Built in 1976 for the export of coal, it has since expanded into other bulk and breakbulk cargoes. DUBE TRADEPORT Southern Africa’s only “Aerotropolis” and home to the King Shaka International Airport. Explore the opportunities of this Province with Trade & Investment KwaZulu-Natal. DRIVING THE BUSINESS OF TRADE AND INVESTMENT 346 4386/6763 346 4774