KwaZulu-Natal Business 2019-20 by Global Africa Network Media

2019/20 EDITION

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

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New team boosts Durban’s prospects A lifestyle of business and pleasure together, Durban has the perfect mix for investors.

eam Durban has a new and dynamic team to drive investment into the city. In September 2018, eThekwini Mayor Zandile Gumede inducted the new members of Team Durban. The team will provide strategic Foreign Direct Investment (FDI) advice to the city leadership and the new Invest Durban Unit on business and investment promotion matters. Mayor Gumede thanked the newly nominated members of the team for agreeing to help accelerate investment growth while looking to improve the business environment of the city region. The Deputy City Manager of Economic Development and Planning Phillip Sithole will provide liaison and administrative support to Team Durban. Sithole will also provide progress reports to council on the functioning and outputs of Team Durban. Members of the Team Durban Advisory Forum from the Municipality comprise eThekwini Mayor Zandile Gumede, who will serve as the Chairperson of the Forum, Chairperson of the Economic Development and Planning Committee Sipho Kaunda, and City Manager Sipho Nzuza.

The external members are representatives of some the biggest business in the city as well as representatives from civil society, including youth and academia. They are: Suben Moodley, Senior Vice President for Corporate Affairs Toyota South Africa; Mike Deighton, Managing Director Tongaat Hulett Developments; Themba Ngcobo, Founder and Director Exel Petroleum; Musa Makhunga, Managing Director of HR Matters and President of the Durban Chamber of Commerce and Industry; Sandile Zungu, Corporate Director Zungu Investments Company Limited (ZICO); Steven Saad, Chief Executive of Aspen Pharmacare; Mlungisi Ntombela, General Manager eThekwini Disability Sport Forum; Faisal Mkhize, KZN Provincial Managing Executive of Absa; Zanamuhla Khanyile, Department of Correctional Services; Samukelisiwe Nzimande, Managing Director K2M Financial Services; Howard Arrand, Provincial Head FNB; Manto Madlala, acting CEO Premier Soccer League; Thulisa Ndlela Chair of Ayigobi Investments. The non-executive members have been appointed to serve on Team Durban for a period of three years effective from 1 July 2018 to 30 June 2021.

Their service will be on a voluntary basis but the municipality will cover their travel and accommodation expenses where required and in accordance with travel policy. At the function to introduce the new team, Russell Curtis, Head of Department, Invest Durban said, “Team Durban marks the further sophistication of the city.” He explained that the goal of Team Durban was to improve partnerships and strengthen relationships between different sectors in society. This forum he said was a significant step change for Durban and in line with global best practice.

INVEST IN DURBAN Durban’s investment agency has a refreshed brand name of “Invest Durban”. A partnership between the Metro City Council and the private business sector, Invest Durban offers a free investor advisory service plus key promotion, facilitation, aftercare services between all investment stakeholders. Invest Durban was recommended by the Durban

City Council and organised private business as the “First Stop Shop” to stimulate economic growth and new investment in the Durban metropolis. Main Purpose To facilitate sustainable investment in Durban for the benefit of all through the: • expansion, retention and aftercare of existing foreign corporate business • proactive investment promotion and marketing of Durban Metro • proactive connection to, and marketing of the city’s large investment projects • attraction of prospective new foreign investors Invest Durban works closely with the Department of Trade and Industry including Invest SA, Trade and Investment KZN (TIKZN), the Durban Chamber of Commerce and Industry, the KZN Growth Coalition, and State-Owned-Enterprises such as Dube TradePort, the DBSA, IDC, Eskom and others. Key partners include the largest banks, audit and advisory firms, plus sector-based organised business bodies working in concert to promote investment in Durban.

Physical address: Invest Durban, eThekwini Municipality 11th Floor, 41 Margaret Mncadi Avenue Durban 4001, South Africa Tel: +27 31 311 4227 Email: invest@durban.gov.za Website: www.invest.durban

E ST 18 56

DURBAN CHAMBER OF COMMERCE AND INDUSTRY NPC

LET’S PUT YOUR BUSINESS ON THE MAP #DurbanMustRise

WHO WE ARE AND WHAT WE ARE ABOUT The Durban Chamber of Commerce and Industry was established in 1856 and is the oldest and largest metropolitan chamber in Africa. As a business-based and member-focused organisation, we work to protect and promote the interests of the eThekwini business community.

VISION In Business for a Better World To be recognised as a world-class business chamber and a united voice of business in the eThekwini Municipal area and beyond.

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

AN ORGANISATION OF GROWTH #DURBANMUSTRISE - the Durban Chamber official hashtag - signifies working towards achieving joint goals to move local businesses forward. The Durban Chamber represents leading multi-nationals; large corporates; small, medium and micro-sized enterprises (SMMEs); and start-ups in promoting inclusive and sustainable economic growth and development in eThekwini and beyond. ADVOCATING AND INFLUENCING POLICY DECISIONS THAT AFFECT THE INTERESTS OF BUSINESS

OFFERING BUSINESS SUPPORT SERVICES AND ADVICE

 LABOUR LAW

 CERTIFICATE OF ORIGIN

 TAXATION

 ITC CHECKS

 BUSINESS REGULATIONS  BUSINESS RESEARCH  MARKET ANALYSIS

Chamber Square, Lion Match Office Park, 892 Umgeni Rd Durban, 4001

PROVIDING BUSINESS INFORMATION RELEVANT TO BUSINESS

 WORKSHOPS AND SEMINARS

 INDUSTRY SPECIFIC ECONOMIC DATA  DURBAN CHAMBER ONLINE NEWSLETTER  AFRICA DISPUTE RESOLUTION (ADR)

 BUSINESS CONSULTATION

 POLICY FOCUS WEEKLY UPDATE

 NETWORKING OPPORTUNITIES  COMPANY REGISTRATION

www.durbanchamber.co.za

+27 31 335 1000

CONTENTS

CONTENTS KwaZulu-Natal Business 2019/20 Edition

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

Special features Regional overview of KwaZulu-Natal The oceans economy holds great promise in KwaZulu-Natal. Investors are showing confidence in the KwaZulu-Natal economy

Private and public entities are expanding operations and creating new opportunities. Massive investments in tourism are paying off

New direct international flights, upgraded facilities and new hotels all point to growing confidence in the tourism sector.

Economic sectors Agriculture 30 New crops are adding to the export basket. Sugar 31 KwaZulu-Natal leads in sugar production. Forestry and paper

Diversification is a growing trend. Mining 42 Second smelter to be activated at Isithebe foundry. Engineering 43 Construction is booming north of Durban. Oil and gas

Italian company Eni has offshore prospecting rights. Construction and property

Infrastructure and multi-use developments are forging ahead. KWAZULU-NATAL BUSINESS 2019/20

• We boast of producing graduates who have gone on to occupy key positions both in public and private sectors • We undertake research relevant to local communities • We have the best Science Centre in Africa 2019 Graduation Period: 13 – 17 May 2019 University Chancellor: Proud Alumnus, his Honourable Deputy Chief Justice, Judge Raymond Zondo

www.unizulu.ac.za

CONTENTS

Water 49 South Africa’s first mobile desalination plant has been installed. Manufacturing 50 The Blue and Green economies hold potential for KZN manufacturers. Automotive

Mahindra bakkies are being assembled at the Dube TradePort. ICT 54 Port Shepstone has a new incubator. Education and training

University research is linked to development issues. Banking and financial services

New banks are changing the face of the sector. Development finance and SMME support

Support is available for entrepreneurs.

Government KwaZulu-Natal Provincial Government

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

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

References Sector contents

Index 64 KWAZULU-NATAL BUSINESS 2019/20

DURBAN ICC INJECTS MILLIONS INTO THE LOCAL ECONOMY The Durban International Convention Centre (DURBAN ICC) has over the past 21 years facilitated socio-economic transformation and contributed billions of rands into South Africa's Gross Domestic Product (GDP). As a pioneer in the South African events sector, the DURBAN ICC continues to excel in driving local economic growth, having contributed over R4.7billion to the country's GDP last year while creating inspiring convention, exhibition and entertainment experiences for its guests. The vast majority of this impact was felt in KwaZulu-Natal, where R4.6 billion was added to our Gross Geographic Product. The DURBAN ICC remains committed to broadening the economic impact of the events and tourism sector through contributing to inclusive economic growth as well as social development. As such, over 9 000 jobs were created as a result of the DURBAN ICC's activities over the past financial year. In order to ensure that that the centre maintains its status as a world-class facility, in the past year, the company invested significantly in a number of key projects to enhance the guest experience and provide a safe and secure venue for our visitors. The DURBAN ICC prides itself on being a leading venue for meetings, business events, conferences and exhibitions on the African continent. However, this is not their own opinion, but rather the overwhelming feedback received from their clients who have voted it in the top 1% of Convention Centres worldwide, as well as "Africa's Leading Meetings and Convention Centre" no fewer than 17times! The DURBAN ICC is one of the most flexible and versatile venues in the world. The Centre's main convention area of 11,600m2 can be opened up to form one enormous venue or subdivided using operable walls into 22 separate convention halls of various sizes. As a venue that takes pride in the fact that we are a world class convention, exhibition and entertainment centre, our primary goal is to enhance our guests' experience.

Opened in 1997by the first democratic President of South Africa, Dr Nelson Mandela, the DURBAN ICC is the country's very first international convention centre and has played a pioneering role in attracting high-profile events to the country. Delegates visiting the Centre can look forward to superb standards of culinary excellence and hospitality. As part of the DURBAN ICC's gourmet evolution over the past 21 years in the industry, they are completely reinventing their culinary offering in order to showcase some of Durban's authentic African Cuisines. Furthermore a wide range of new innovative packages have been designed to meet the unique needs of each target market, at the best possible rates. The five-star graded centre has also received a number of accolades among them being ranked in the world's Top 17 Convention Centres which is an outstanding achievement in the global meetings industry. The Centre was the only centre in Africa to have made the list despite several other entries from the continent. This accolade serves to affirm the DURBAN ICC's position as Africa's leading convention centre - a reputation they work hard to uphold every day.

DURBAN ICC

YEARS OF CHANGING

INTERNATIONAL C ONVENTION CENTRE INKOSIALBERTLUTHULIICCCOMP'LEX S OUTHAFRICA

LIVES 1997-2018

� +27 (0)31 360 l 000

114 sales@icc.co.za

® www.icc.co.za

45 Bram Fischer Road Durban, 4001 P.O. Box 155 Durban, 4001 South Africa

CREDITS

KwaZulu-Natal Business

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse

A unique business and investment guide.

Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder

he 2019/20 edition of KwaZulu-Natal Business is the 11th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on the surge in investment in new tourism projects, from casino expansions to the building of a dedicated cruise-liner terminal. Another special feature surveys other large investments in a wide variety of sectors, showing the diversity and strength of the provincial economy. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

Design: Tyra Martin Production: Lizel Olivier Ad sales: Gavin van der Merwe, Sam Oliver,Gabriel Venter, Jeremy Petersen, Shiko Diala, Vanessa Wallace, Reginald Motsoahae and Sandile Koni. Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

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DISTRIBUTION

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

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

ISSN 1993-0127 COPYRIGHT | KwaZulu-Natal Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Pictures supplied by: ABC, Avon Peaking Power, Bell Equipment, Dube TradePort, Durban ICC, EBH, iStock, JG Afrika, Tongaat Hulett Development, Tsogo Sun, Viking Ocean Cruises/Philip Wilson.

KWAZULU-NATALBUSINESS 2019/20

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

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SPECIAL FEATURE

A REGIONAL OVERVIEW OF

KWAZULU-NATAL The oceans economy holds great promise in KwaZulu-Natal. By John Young

wo of the most important ports in South Africa are at the heart of KwaZulu-Natal's central position in the nation's transport and logistics network. As the secondbiggest contributor (16%) to national gross domestic product (GDP) after Gauteng and a major manufacturer and exporter of goods, the KwaZulu-Natal province lends itself to potential investments in many spheres. A new national focus on trying to develop the country’s maritime potential is playing to KwaZulu-Natal’s strengths. KwaZulu-Natal province has a long coastline that stretches from Port Edward in the south to the Kosi Bay Nature Reserve in the north. The province's contact with the sea has brought obvious benefits: fishing, fine beaches enjoyed by millions of tourists, and two great ports – the Port of Durban and Richards Bay. These ports export vast quantities of minerals (mostly through Richards Bay) and manufactured goods (Durban) and serve as an important conduit for imports of all sorts. The Richards Bay Coal Terminal exports coal while the Port of Durban is the busiest port in Africa. KWAZULU-NATAL BUSINESS 2019/20

However, planners want to increase the economic benefits that the ocean can bring. An Oceans Economy Review Workshop has come up with a range of subsectors that can help grow the provincial economy and invite foreign direct investment: • marine transport and manufacturing • offshore oil and gas exploration • aquaculture • marine protection and ocean governance • small harbours • coastal and marine tourism. Strategies to grow the Oceans Economy dovetail with plans to boost the capacity of the ports at Durban and Richards Bay and to explore for gas and oil in the Indian Ocean. Ship-building and ship repairs is an existing industry, but it is currently not very big. If oil rigs were to start visiting the KZN coastline on a regular basis, this industry will grow exponentially. The Oceans Economy is one of the focus areas that has been chosen by national government to be part of Operation Phakisa, a focused, goal-driven

SPECIAL FEATURE

attempt to jump-start a specific economic sector. Overall, Phakisa intends creating a million jobs by 2033 and injecting R177-billion into national GDP. The decision to build a cruise-ship terminal at the Port of Durban is a good example of the kind of decision that dovetails with the vision for an Oceans Economy. Another big potential growth area in KwaZuluNatal is energy. Several licences have been granted for off-shore exploration and the hope exists that something will be found – the vast gas fields off the coast of Mozambique are close. The King Shaka International Airport (with its own trade port and industrial development zone called the Dube TradePort) is another of the province's logistics key points, which has the potential to boost the regional economy in several sectors, particularly agricultural export and tourism. The province's other zone is the Richards Bay Industrial Development Zone (RBIDZ). In recent years, investments into the RBIDZ have included: a titanium plant (R4.5-billion); a biomass plant (R2billion); a pipe manufacturing plant (R300-million); paint manufacturing (R16-million); and logistics services (R20-million). In the base-metals and metal-products sectors, giant companies such as BHP Billiton, Hulamin, Arcelor Mittal and Assmang have a big presence in the province. Steel, iron and aluminium account for

nearly a third of exports followed by metal products. The third sector making a big contribution is the automotive and automotive components sector, with about 18%. Chemicals is the other major export driver. Toyota and Bell Equipment play a vital role in the automotive sector while the Engen Oil Refinery, paper and packaging group Mondi and dissolving pulp manufacturer Sappi are among other strategically important entities in the provincial economy. Sappi's export of dissolving pulp makes it a world leader in its field. Although the forestry and paper sector and the sugar sector are grounded in the agricultural sector, the leading companies' processing plants and downstream beneficiation also make them major components of the manufacturing sector and big contributors to the province's export basket. In addition, Tongaat-Hulett is a major property company and Illovo is a continental leader in sugar production.

Tourism Tourism plays a vital role in the economy of the region, with the conference and events sector supported by excellent facilities. The jewel in the crown is the huge Albert Luthuli International

KWAZULU-NATAL BUSINESS 2019/20

SPECIAL FEATURE

Convention Centre Complex which hosts the annual Tourism Indaba. The province's excellent climate lends itself to every kind of outdoor pursuit and its excellent beaches are always popular. Big sports events are regularly hosted in KwaZulu-Natal which has become something of a home to mass participation events such as the Comrades Marathon and Dusi Canoe race. The province has excellent game and nature reserves. Isimangaliso Wetland Park is a World Heritage Site and helps to fund 80 small businesses associated with its business as a tourist site. New international direct flights have been announced by King Shaka International Airport, including a direct flight to London with British Airways.

Plans for Durban Six years ago, the eThekwini Municipality adopted a densification strategy which entails careful planning along three main urban corridors which connect to the city centre. Land-use management along these corridors will encourage diverse investments while at the same time introducing an Integrated Rapid Public Transport Network (IRPTN). An Inner City Local Area Plan (LAP) for Durban has been developed that aims to make the inner city of Durban “Africa’s leading, most vibrant, liveable, walkable City Centre”. Developed for the Strategic Planning unit of the eThekwini Municipality by a Joint Venture called IPPU, the LAP is based on four main principles: • The connected city: tackling the legacy of the disconnected city of apartheid, the plan promotes the integration of different modes of transport (bus, taxi, pedestrian, rail, etc). • The walkable city: the aim is for residents to be five minutes’ walk from public transport, shops, schools and healthcare facilities. A good variety of residential accommodation is key. • Land use intensity: the plan proposes that land use approvals be more flexible, allowing for more variety and greater density. The plan cites an example of art gallery at street level, with offices above and accommodation on top. If more people live in an area, then shops become more viable and it is easier to provide bulk services. • Starting with small projects and finding ways of championing the development of the inner city.

Geography The mixed topography of the province allows for varied agriculture, animal husbandry and horticulture. The lowland area along the Indian Ocean coastline is made up of subtropical thickets and Afromontane Forest. High humidity is experienced, especially in the far north and this is a summer rainfall area. The centrally located Midlands is on a grassland plateau among rolling hills. Temperatures generally get colder in the far west and northern reaches of the province. The mountainous area in the west – the Drakensberg – comprises solid walls of basalt and is the source of the region’s many strongly running rivers. Regular and heavy winter snowfalls support tourist enterprises. The Lubombo mountains in the north are granite formations that run in parallel. KWAZULU-NATAL BUSINESS 2019/20

SPECIAL FEATURE The IPPU Joint Venture comprises Iliso, TPI, PMSA, UrbanEcon including Cox Architecture, Urban Solutions, Urban Earth, Jo Lees and Joe Kitching. The Point Waterfront Development is a major project that is in the process of transforming what was an under-utilised and somewhat rundown part of the city into a vibrant, multi-use precinct. Some projections put the total potential investment value of the project at R40-billion and the number of permanent jobs to be created at 6 750. It is an ambitious plan that links the city's beach promenade and the harbour. It offers a property use mix of office space, retail shops, residential dwellings and leisure options. The 55ha site has already seen significant investment. A cruise terminal in the harbour backing on to the Point has been approved. Other major projects in the inner city include: • The Warwick Junction transport interchange which has received road upgrades but could be an even greater enabler of trade. • The Centrum Government Precinct which will formalise the relationship between buildings such as the International Convention Centre and a related hotel, the library, council chambers and the redevelopment of Gugu Dlamini Park.

Further south, plans are in place to upgrade Margate’s airport and Port Shepstone’s beachfront.

Western region Also known as the Midlands, this is a fertile agricultural region, producing sugar cane, fruit, animal products, forestry and dairy products. Pietermaritzburg is the provincial capital and home to a major aluminium producer along with several manufacturing concerns, including textiles, furniture, leather goods and food. The city has good transport links along the N3 national highway, excellent schools and a lively arts scene. The Midlands Meander is a popular tourist destination.

Eastern region Although most of this area is very rural, Richards Bay is one of the country’s industrial hotspots because of its coal terminal and port and aluminium smelters. The Richards Bay Industrial Development Zone (RBIDZ) is a major economic node in itself: the 62-hectare first phase is almost fully subscribed with the investment value of the two phases (some having already been secured for phase two) at R6.8-billion. Mining is an important sector in this region. The other major urban centre is Empangeni which has several educational institutions. The newly completed King Shaka International Airport is kick-starting massive new investment in the area. The ilembe District Municipality is particularly active in seeking out new investors.

Regions KwaZulu-Natal has 11 district municipalities, the most of any province in South Africa. In economic terms, the province offers diverse opportunities.

Southern region Northern region This area is the province’s most populous. The city of Durban has experienced booms in sectors such as automotive, ICT, film and call centres. Major investments are taking place at the Port of Durban and there is a possibility that the old airport south of the city becomes another port, if the money can be found to dig it up and let the sea in. Durban's conference facilities are well utilised, but many opportunities still exist in chemicals and industrial chemicals, food and beverages, infrastructure development and tourism.

The economic powerhouse is Newcastle in the north-west: coal-mining, steel processing and manufacturing are major activities. Some old coal mines are being reopened by new coal companies to cater for the country's power stations’ demand for the fuel. 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.

KWAZULU-NATAL BUSINESS 2019/20

SPECIAL FEATURE

Investors are showing confidence in KZN Private and public entities are expanding operations and creating new opportunities.

arbour expansions, a new film studio, infrastructure spending by major cities and the state and several city-sized property developments – these are some of the big investments into the KwaZulu-Natal economy currently underway. The scale and variety of these investments illustrate the size and diversity of the regional economy which ranges from mining, steel and chemical manufacturing to automotive works, agri-processing and clothing and textiles. Recent investments in the expanding tourism sector are covered in a separate article. The New Development Bank, a BRICS initiative, has approved a loan of $200-million in support of the reconstruction of the Durban Container Terminal berth. This will allow Transnet to expand the capacity of the port and to cater for bigger vessels. At Richards Bay, Transnet has committed to investment of R7.5-billion to 2023. Money has been allocated to improving the coal rail line, expanding the rail yard and the port itself. There will be 45 projects in all. The Richards Bay Industrial Development Zone (RBIDZ) is attracting investment as a node of development as it offers attractive incentives and support for investors. Sectors being targeted include agri-processing, ICT and telecommunications, manufacturing (proximity to aluminium works opens possibility for the manufacture of discs, pistons and beverage cans), logistics KWAZULU-NATAL BUSINESS 2019/20

and renewable energy. RBIDZ has been named as the site for 2 000MW liquefied natural gas (LNG) plant in terms of national government's gas-to-power plan. RBIDZ is also the site of a new biomass plant. Film-maker Anant Singh has plans to transform the old Natal Command site at North Beach into eThekwini Film City. He owns most of the land and the municipality is in favour of the project. Singh told City Press that the projected cost of the project is R7.5-billion. Two of the province’s biggest companies, Sappi and Mondi, are diversified global operators and they have both recently made major investment commitments. R e sp o n d i n g to Pre si d e nt Cyril Ramaphosa’s appeal for investments to drive the South African economy in 2018, Sappi committed to R7-billion and Mondi to R8-billion. Sappi spent R4.3-billion on increasing its capacity in dissolving pulp in the six years to 2018 and will spend R2.7-billion on its Saiccor plant in KwaZulu-Natal. Mondi noted that its exports from KwaZulu-Natal annually earned about R4-billion. A new plant to make washing machines has created 75 jobs at the Durban plant of white goods manufacturer Defy. The R121-million

SPECIAL FEATURE investment is part of a R1.2-billion investment programme which Arçelik Global, the Turkish company, has been following since it bought Defy in 2011. The company has another plant in KwaZulu-Natal in Ezakheni (near Ladysmith) and in East London in the Eastern Cape. In 2018 the eThekwini Metropolitan Municipality decided to apply for a R1-billion load for capital projects. The city’s integrated development plan will include expenditure on water and sanitation infrastructure, roads and electrification projects. Infrastructure throughout the province will attract more than R200-billion to 2025 according to information supplied by the KZN Construction Expo. Major developments north of the city of Durban continue to transform the economy and the landscape. The King Shaka International Airport and the associated Dube TradePort has made a big impact, as has the conversion by sugar giant Tongaat Hulett of its land holdings into property developments. Dube TradePort is a 3 000-hectare development that encompasses the airport and is ideally situated for any logistics business due to its proximity to Africa’s busiest cargo port (at Durban) and 140km from the deepest natural harbour in the southern hemisphere where the Port of Richards Bay and the Richards Bay Industrial Development Zone are located. Dube TradePort is a Special Economic Zone which has: • Dube Cargo Terminal. • Dube Tradezone: Suitable for warehousing, manufacturing, assembling, cargo distribution, etc. • Dube City: 12 hectares of office, retail and hospitality space. • Dube Agrizone: intended to support growing, packaging and distribution high-value perishables and horticultural products. • Dube iConnect: the precinct’s dedicated IT and telecommunications provider and the only locally-hosted cloud service in the province.

Industrial parks The Provincial Government of KwaZulu-Natal intends establishing one industrial park within each of the province’s 10 district municipalities, focussing on existing strengths. These industryfocused hubs will attract new investments and help existing businesses through economies of scale and by improving access to markets and supply chains. There is one metropolitan municipality in KwaZulu-Natal. Construction on the industrial park in the eThekwini Metropolitan Municipality, an automobile supplier park, is expected to begin in 2019. In most of the other areas, land has been secured and feasibility studies have been completed. The design of the parks and the KWAZULU-NATAL BUSINESS 2019/20

provision of infrastructure is currently underway and some tenants have been identified. The Department of Economic Development, Tourism and Environmental Affairs is the implementing agency on behalf of the Provincial Government. By way of example, the iLembe District Municipality will be the focus of investment in renewable energy. The N2 is the main arterial running through the district, giving excellent access to both Durban and Richards Bay. The Dolphin Coast is a major node for tourism. With the King Shaka International Aiport (KSIA) and the Dube TradePort lying just south of the iLembe District in the eThekwini Municipality, a partnership has been created between the two municipalities and the provincial government to develop a renewable energy technology innovation hub. Enterprise iLembe (Pty) Ltd drives investment into the area. At Ndwedwe 26 biodigesters produce gas for cooking as part of the Working for Energy programme of the South African National Energy Development Institute (SANEDI). The Small Harbours and State Coastal Property unit of the National Department of Public Works wants to see coastal properties revitalised. Initiatives are under discussion for Port Edward (new harbour, fish processing, fishing and leisure), Hibberdene (waterfront and a Music City) and Port Shepstone (boat building and repairs and a new economic zone).

Making a real impact As Black Umbrellas, we are passionate about the socio-economic impact we make to our clients and partners. We believe that every rand invested by our partners/donors must yield a positive result and tangible impact. The SMEs we support continue to make significant positive strides to the outlook of this country.

Our model is aimed at supporting emerging and existing 100% black-owned businesses through a threeyear incubation programme so that they are able to emerge as independent, viable businesses. KwaZulu-Natal power milestones collectively achieved by our SME clients

Turnover

Net Profit

Jobs Created

Salaries Paid

Net Asset Value

R530 435 388

R65 202 494

1704

R134 118 299

R211 091 877

The success of our programme and SMEs has been recognised by entities such as Zululand Chamber of Commerce and Industry (ZCCI) and Business Women’s Association (BWA). Here a number of our clients have scooped prestigious awards such as the BWA Zululand Emerging Entrepreneur of the year (2016/ 2017), ZCCI Emerging Business of the year (2017), ZCCI Micro Business of the year (2017) as well as the People’s Choice Award at Black Umbrellas’ National Enterprise Development Awards (2018).

Contact us today to become an ESD partner as a mentor, donor or advisor: Tel: 035 901 8760 | Email: Tebogo@blackumbrellas.org | Website: www.blackumbrellas.org

Massive investments in tourism are paying off New direct international flights, upgraded facilities and new hotels all point to growing confidence in the tourism sector.

ajor investments are being made into getting tourists to KwaZulu-Natal and new hotels are being built to accommodate the increased number of visitors. Durban’s casino has had a major refit and the Durban International Convention Centre (pictured) is constantly upgrading its facilities to cope with demand. In terms of the vital transportation of tourists into the province, the most significant developments are: • The decision to go ahead with the construction of a dedicated cruise-liner terminal in the Port of Durban. • The announcement in 2018 of a new direct British Airways (BA) flight between Heathrow Airport in London and King Shaka International Airport (KSIA). • Africa’s longest suspension bridge has dramatically reduced travel times between tourist hotspots in northern KwaZulu-Natal and neighbouring country Mozambique. The Maputo-Catembe bridge forms part of a new road from Maputo to Kosi Bay which was officially opened in November 2018.

mountainous scenery of the UkhahlambaDrakensberg Park. The history of the Zulu kingdom includes a number of battlefield sites outlining famous clashes with the British Empire such as Isandlwana. Mahatma Gandhi lived in the province and the site of Nelson Mandela’s arrest is commemorated. Big sporting events such as the Dusi Canoe Marathon, the Durban July Handicap and the Comrades Marathon attract thousands of participants and supporters every year. In KwaZulu-Natal, the combined contribution of retail and tourism to GDP is 14%. Many thousands of visitors to KwaZulu-Natal arrive by road, and the statistics show that the Mooi River toll plaza bringing visitors from Gauteng Province is a vital portal.

Improving access In 2018 Transnet National Ports Authority (TNPA) and the KwaZulu Cruise Terminal (KCT) signed an agreement for the construction of a cruise-ship terminal in the Port of Durban that will be completed by late 2020. KCT, a joint venture between MSA Cruises SA and Africa Armada Consortium, will spend R175million on the financing‚ construction‚ maintenance and operation of a cruise terminal for a 25-year concession period.

KwaZulu-Natal offers astonishing variety for the visitor. Awesome natural beauty extends from the beaches all along the coastline to the iSimangaliso (Greater St Lucia) Wetland Park and the spectacular KWAZULU-NATAL BUSINESS 2019/20

SPECIAL FEATURE The number of cruise-ship passengers attracted to Durban grew from 42 000 in 2004/05 to 157 000 in 2010/11 and the new terminal is expected to radically improve these numbers. The number of annual passengers is expected to grow from the current 200 000 to more than 700 000 by 2040. South Africa attracts 0.5% of the world’s cruise-ship market which comprises about 15.4-million passengers annually. Durban’s hosting of 60 ships per annum will rise to 150 or more. The decision by BA to introduce a direct London flight is a major boost for KwaZulu-Natal’s main airport. Although Qatar Airways, Emirates Airlines and Turkish Airlines provide direct flights to their own hubs (Doha, Dubai and Istanbul), a direct link with London will be very attractive to tourists and to importers and exporters. KSIA is within the Dube TradePort and cargo volumes have been increasing steadily every year. The opening of the ambitious Maputo-Catembe bridge has opened up a number of possibilities for tour operators in northern KwaZulu-Natal. With access to Mozambique no longer involving a tortuous process of driving through Swaziland, the chances of tourists wanting to combine a visit to the parks in South Africa with a visit to Mozambique’s vibrant capital are much higher. It is possible that the bridge itself will become a tourist attraction. The improved roads connecting Kosi Bay to Maputo will also mean increased trade, with the Richards Bay Industrial Development Zone only about 250km further south from Kosi Bay.

MEETINGS AND EVENTS Facts about the Inkosi Albert Luthuli ICC Complex • • •

• • • •

The ICC can seat 5 000 delegates Raked seating for 1 800 can be lifted to the ceiling to clear floor space 10 000 delegates can be accommodated when combined with the Dur ban Exhibition Centre (DEC) The ICC offers 70 000 square metres of column-free space 23 meeting rooms and undercover parking for 1 200 cars Three courtyards, one central kitchen and 12 satellite kitchens Alber t Luthuli was president of the African National Congress and received the Nobel Peace Prize in 1960

Tsogo Sun has four other hotels on the Golden Mile and more than 100 hotels and 14 casino and entertainment destinations in South Africa, Africa and the Seychelles. Tsogo Sun runs 14 hotels in KwaZuluNatal, five of which are Garden Courts. Six hotels are in Durban with a further four in nearby Umhlanga, where one of the group’s most luxurious hotels, the 89-room Beverly Hills, is located. A new “mega-hotel” has been created by Tsogo Sun, with the amalgamation of the Southern Sun North Beach and Southern Sun Elangeni hotels. A key reason for Durban’s high ranking in the meetings, incentives, conferencing and exhibitions sector (MICE) is the Durban International Convention Centre (Durban ICC). Located within the Albert Inkosi ICC Complex in downtown Durban, the venue will spend R27.3-million in 2019 on capital projects. The Durban ICC is one of the most flexible and versatile venues in the world. The main convention area of 11 600m² can be opened up to form one large venue or subdivided into 22 separate convention halls of various sizes. The refurbishment of seats in Hall 1, which can seat up to 1 680 delegates, will cost R6-million.

New and improved Tsogo Sun has spent R1.6-billion on refurbishing its Suncoast complex on Durban’s Golden Mile. Suncoast Casino Hotels & Entertainment covers a huge area and offers a wide variety of entertainment options. The recent upgrade included the addition of seven new restaurants, new retail outlets, a new theatre and an event venue, and increased space at the casino. More underground parking was created and the whole complex was given a fresh look.

KWAZULU-NATAL BUSINESS 2019/20

SPECIAL FEATURE the hotel and the shopping mall sections of the planned complex are going ahead. A 207-room Hilton Garden Inn will be operating at Umhlanga Arch by 2020. Hilton Durban acquired a new owner in 2018 when Bin Otaiba Hotels bought it, together with four hotels in Johannesburg, Port Elizabeth and Cape Town.

Hotels Research by Tourism KwaZulu-Natal shows that the coastal province consistently has the best hotel occupancies in the country. Protea Hotels has 18 properties in the province, with seven in Durban including the Protea Hotel Edward. The upgrading of the Point area between the beach and the Port of Durban has resulted in major investments. The Docklands Hotel at the Durban Waterfront is a four-star Signature development that cost about R100-million to develop. The Royal Hotel in the heart of Durban is one of eight Three Cities Group hotels in the province. The Golden Horse Casino Hotel is a Three Cities property, and the Group administers the International Hotel School in Westville that is also home to the Christine Martin School of Food and Wine. IFA Hotels & Resorts runs several luxury properties including the Zimbali Coastal Resort and Zimbali Lakes Resort. Signature Life Hotels has 13 properties and Gooderson Leisure has a varied portfolio. Sibaya Casino and Entertainment Kingdom, a Sun International property, is north of Durban between Umdloti and Umhlanga. The casinos in Newcastle (Century City), Empangeni (Tusk Umfolozi Casino) and Pietermaritzburg (Golden Horse Casino) are run by Century Casinos Newcastle, Peermont Global and Akani Msunduzi Management respectively. Airbnb is a fast-growing option in South Africa. The Airbnb visitors to South Africa in 2016 engaged in R2.4-billion worth of economic activity. Durban had the largest increase in Airbnb bookings from the previous year.

More than 20 000 delegates will use the Durban ICC in 2019. In the 2017/18 financial year, the venue hosted 450 events, contributed R4.7-billion to South Africa’s Gross Domestic Product and created 9 474 jobs. Durban's hosting of the Tourism Indaba further supports the idea that the province is a major conference destination. More than 7 000 delegates are annually attracted to exhibit South Africa's assets to international tour operators. The city has secured the Tourism Indaba until 2022. The range of topics covered by recent conferences held in KwaZulu-Natal is wide and includes the World News Media Congress, the Pan-African Health Tourism Congress, the National Association of Automotive Components and Allied Manufactures (NAACAM) Show and the Durban Maritime Summit. Premier Hotels & Resorts will spend about R420-million on two new hotels at Umhlanga. Currently under construction, the hotel complex is located alongside the Gateway Theatre of Shopping next to Umhlanga Ridge. The four-star Premier Hotel will have 130 rooms while the threestar Splendid Inn by Premier will be equipped with 64 bedrooms. The group has hotels and resorts in six provinces. A new Radisson Blu Hotel will open in Umhlanga Rocks as part of the ambitious R3-billion Oceans Umhlanga development. Some construction work has been halted because of problems experienced by construction companies, but it seems that KWAZULU-NATAL BUSINESS 2019/20

SPECIAL FEATURE Regions

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

Several of KwaZulu-Natal’s regions are investing in tourism projects. Harry Gwala Dramatic mountain landscapes and a plentiful supply of water help make this district perfectly suited to tourism. The main towns are Kokstad and Ixopo. The Drakensberg Mountains define the district’s western boundary. The Harry Gwala Development Agency believes that niche sectors such as avi-tourism (birding), rail tourism and mission tourism hold great potential. Umkhanyakude The Isimangaliso Wetland Park extends 220km along the northern reaches of the province, to the border with Mozambique, and offers unrivalled birding, game viewing, deep-sea fishing, turtle tours, kayaking and whale-watching. It is a World Heritage Site and, together with the HluhluweuMfolozi Game Reserve, forms the core of the tourism and conservation offering in the province. With agriculture the other dominant economic activity in the area, any new investment would have to be ecologically sensitive. A new entertainment complex at Hlungweni Peninsula within the Tembe Tribal Authority, 30km north of Sodwana Bay, is being contemplated.

the Drakensberg mountain range, which attracts hundreds of thousands of visitors. A cableway system in the Drakensberg (near Bergville) with entertainment and accommodation facilities has been mooted. Zululand Zululand is a popular destination for cultural experiences and the area is rich in Zulu history and Anglo-Boer War history. Vryheid and Ulundi are the main towns. A possible development of a heritage site at Nongoma has been suggested to serve as a catalyst for other sites to offer traditional Zulu experiences, including arts and crafts, agriprocessing, traditional medicines and cosmetics and leveraging the profusion of aloe plants in the district.

Uthukela Larger towns include Estcourt, Colenso and Ladysmith. Predominantly rural, the district encompasses two of the greatest natural assets in the province in the Thukela River and a part of

KWAZULU-NATAL BUSINESS 2019/20

INTERVIEW

Enterprise iLembe Nathi Nkomzwayo, CEO of Enterprise iLembe, reveals how this east coast region is packed with opportunity, from agriculture and manufacturing to tourism, commerce and services. What is Enterprise iLembe?

Nathi Nkomzwayo, Chief Executive Officer

We are the Economic Development Agency of the iLembe District Municipality and our mandate is to drive economic development as well as to promote trade and investment in the region. We do this through the development of the economic development strategy that guides economic activities and programmes. The philosophy that drives Enterprise iLembe is built on promoting a participatory process where local people work together to stimulate local commercial activity, resulting in a resilient and sustainable economy. With our partners such as Trade and Investment KZN and the iLembe Chamber we aim to position the district as the investment destination. Programmes include biannual business confidence reports and an overall business outlook. Where do you operate?

BIOGRAPHY Nathi has more than 18 years’ experience in the manufacturing industry, 10 of those at senior management and executive level. With a degree in engineering and an MBA, his career highlights include the successful implementation of a R400-million project for a large smelter and the design and execution of a range of programmes from skills transfer to asset care strategies. As a board and executive committee member, Nathi has experience in company policy formulation, corporate governance and relationship management.

The iLembe District is made up four local municipalities, KwaDukuza, Maphumulo, Mandeni and Ndwedwe. They are different in terms of their economic outlook and their developmental needs with the coastline on one end and agricultural space on the other. Our strategy needs to zoom in on the development needs of the individual local municipal areas while ensuring broader alignment and integration. We need to be conscious of the unequal business environment. How does Enterprise iLembe identify and develop projects? In most cases we are guided by our strategic geographic location and economic sectors that are most viable in our region. These sectors are Agriculture, Manufacturing, Tourism, Oceans economy, Renewable energy as well as Commerce and Services. Being strategically located between the two major South African harbours in Durban and Richards Bay, iLembe District is the highest-priority development corridor in the province. The close proximity to the King Shaka International Airport and the Dube TradePort also connects the district directly to international markets. We have established a Business Incubator Facility. The objective is to provide assistance for SMMEs. Working in the partnership with Invotech and Africa Ignite, the project assists with access to technical and business-related skills. It is the one-stop shop for all business information and facilitating access to funding for SMMEs. Enterprise iLembe has also finalised a Broadband Masterplan.

KWAZULU-NATAL BUSINESS 2019/20

INTERVIEW How has tourism contributed to economic development and job creation? The past year saw a record of over 800 000 tourists visiting the iLembe District, contributing over R3-billion to the economy of the region. Attractions such as the Ballito Junction Mall remain key drivers. The mall attracted 12-million visitors during its first year of operation. There are many other tourist offerings besides shopping. These includes the beaches, cultural, history and adventure tourism. How does the flagship National Schools Nutrition Programme benefit farmers and learners?

How do you work with investors? We continuously engage with potential investors through various platforms and sign MOUs that lead to direct investment across all sectors with key focus on job creation, skills development and the overall contribution to the economy. More recent investments are focused in the renewable and green energy sector. The investment opportunities are outlined in the iLembe investor prospectus for the region. As Enterprise iLembe, we believe that collaboration and partnerships with key stakeholders is key. It is to this end that we work closely with partners such as Trade & Investment KZN, Tourism KwaZulu-Natal, local municipalities as well as private-sector partners. Other partners such as Dube TradePort and the Isithebe Industrial Estate have also created immense opportunities for growth and stimulation of economic initiatives. Our focus is to work with potential investors to facilitate and ensure that their investment in the iLembe District is not only seamless and smooth, but also sustainable in the long term.

CONTACT INFO Tel: 032 946 1256 Email: info@enterpriseilembe.co.za Website: www.enterpriseilembe.co.za Facebook: Enterprise iLembe | NORTHCOASTKZN Twitter: EnterpriseiL

As per our mandate, Enterprise iLembe procures vegetables from farmers to supply to schools for the National Schools Nutrition Programme (NSNP). Currently approximately 63% of the 180 tons required for the programme are procured from local farmers. A total of 119 farmers supply fresh produce to the 406 schools in the district. This has been achieved through the setting up of agrihubs in Mandeni, Maphumulo and Ndwedwe. This is a key programme for Enterprise iLembe as it talks directly to the empowerment of local communities. Agriculture has been proven to be one of the most sustainable sectors provided there is a market for SMMEs to supply their fresh produce, and the NSNP creates that market space.

KWAZULU-NATAL BUSINESS 2019/20

ADVERTORIAL

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

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

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

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

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

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

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

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

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

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

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

ADVERTORIAL

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

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

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

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

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

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

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

KEY SECTORS Overviews of the main economic sectors of KwaZulu-Natal Agriculture

Sugar

Forestry and paper

Mining 42 Engineering

Oil and gas

Construction and property

Water

Manufacturing

Automotive

Information and communication technology 54 Education and training

Banking and financial services

Development finance and SMME support

OVERVIEW

Agriculture New crops are adding to the export basket.

he award of Toyota SA/Agri SA Young Farmer of the Year for 2017 went to a Richmond farmer who is one of only four farmers in the province cultivating golden kiwifruit. There are only 16 farmers in all of South Africa doing what Ross Lowe does, but he believes that the particular strain of kiwifruit he has chosen is the best in terms of taste and yield. Typically for the modern KwaZulu-Natal farmer, he also intends to increase his export volumes. So-called superfoods have potential to grow the agricultural sector via greatly increased exports: these include avocados, pecans and dates. The province’s Premier has mentioned possibilities in macadamia nuts (already a thriving sector in other parts of the country) and in new areas such as cannabis and the farming of rabbits. The opening of a R99-million cold-storage facility at the Dube TradePort in 2017 has given farmers and exporters additional flexibility, allowing them to store chilled and frozen perishable goods. Eighteen percent of KwaZulu-Natal’s 6.5-million hectares of agricultural land is arable, and the balance is suitable for the rearing of livestock. The province’s forests occur mostly in the southern and northern edges of the province. In 2018, a summit was held at which consultation took place towards the creation of an Agricultural Development Masterplan for the province. The resulting plan includes priorities such as the expansion of irrigable land, improving market access for producers and adding value to agricultural products before they reach local and international markets. The Agribusiness Development Agency (ADA) works with Department of Agriculture and Rural Development (DARD) to stimulate agribusiness that covers the entire value chain and promotes development in all areas. 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.

ONLINE RESOURCES Fresh Produce Exporters Forum: www.fpef.co.za KwaZulu-Natal Agricultural Union: www.kwanalu.co.za KwaZulu-Natal Department of Agriculture and Rural Development: www.kzndard.gov.za

KWAZULU-NATAL BUSINESS 2019/20

SECTOR INSIGHT Increased agricultural freight volumes are expected at the Dube TradePort.

Beef originates mainly in the Highveld and Midlands areas, with dairy production being undertaken in the Midlands and south. The province produces 18% of South Africa’s milk. KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle, which represents 55% of the provincial beef herd, and their goat herds account for 74% of the province’s stock. The Midlands is also home to some of the country’s finest racehorse stud farms. The area around Camperdown is one of the country’s most important areas for pig farming. Enter p r is e iLemb e, th e development arm of the iLembe District Municipality, is looking for investors to further develop an agri-processing hub near the King Shaka International Airport and Dube TradePort.

OVERVIEW

Sugar KwaZulu-Natal leads in sugar production.

SECTOR INSIGHT Times are tough in the sugar industry.

or the first time in nearly a decade, some commercial sugar farmers in the Pongola area have returned to planting cotton as a rotational crop. This is according to the 2018 annual report of the KwaZulu-Natal Agricultural Union. Diversification is a good thing, but this move perhaps also points to the downward trend in overall sugar production. KwaZulu-Natal is South Africa’s biggest sugar producer. Most of South Africa's 14 sugar mills are in KwaZulu-Natal, as are the headquarters of the biggest companies. The South Africa Cane Growers’ Association (SACGA) described the 2017/18 season as “one of the toughest in the history of the South African sugar industry”. Although more land was cultivated (after the drought) and revenue was up, the price of sugar was so low that some growers were said to be at risk of business failure. Fourteen sugar mills crushed a total crop of 17 388 177 tons of cane to produce 1 994 607 tons of sugar during the 2017/18 crushing season. The cane crop was 2 313 567 tons larger than the 2016/17 crop of 15 074 610 tons. About 40% of local production is exported. The SACGA represents about 24 000 growers who produce about 20-million tons of cane. A new industry structure, allowing for multiple grower associations, has been agreed to by the SACGA, the Department of Trade and Industry

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

(dti) and the relevant parliamentary portfolio committee. Neither of the Big Two companies relies exclusively on South African sugar earnings: Tongaat Hulett has a big property portfolio and Illovo draws most of its profit from operations elsewhere in Africa. Tongaat Hullet Sugar has agreed to a R52-million sugarcane-growing project which will see co-operatives and contract farmers plant cane on 3 000ha at Felixton, Maidstone and Darnall. Illovo and Tongaat Hulett are the major operators of sugar mills. Other millers are Gledhow, ULC, Umfolozi and Tsb (which has a further two mills in Mpumalanga). Illovo has four mills, three sugarcane estates, four sugar factories, a refinery and three downstream operations that make products such as furfural, furfuryl alcohol, ethyl alcohol and lactulose. The four mills run by Tongaat Hulett are located on the North Coast while the central refinery is in Durban and the animal feed plant, Voermol, is near Tongaat. The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and can store more than half-amillion tons of sugar. It also has a molasses mixing plant.

KWAZULU-NATAL BUSINESS 2019/20

FOCUS

Stimulating the agri sector in KwaZulu-Natal The new CEO of the Agribusiness Development Agency, Zenzele Ndlela, is upbeat about the ADA’s new mandate. agricultural value chains in KwaZulu-Natal through partnerships with individuals, communities, the private sector and other public sector institutions in order to achieve a transformed agribusiness sector,” Ndlela says. “There was a need to have a separate entity that would accelerate the provision of a comprehensive support package to black commercial farmers” says Ndlela. ADA has positioned itself to resuscitate as well as develop commercial agriculture and has been able to increase the value of farms owned by black commercial farmers, reduce the number of farms being repossessed as well as deal with the declining local economies of rural towns that relied on commercial agriculture. Ndlela notes, “It must be noted that we have reviewed our mandate and shifted our strategic focus to the entire value chain in agri-business. Our interventions have changed the agricultural landscape in the province. Providing funding to beneficiaries improved their agribusinesses and welfare and enabled them to gain access to markets through capacity building programmes. “The positive attitude and optimism among our beneficiaries towards farming is linked to the newly gained confidence in their skills (farming techniques, marketing, value addition, etc.) which they received from ADA,” says Ndlela. “We have turned around ailing farms including dairies, piggeries, grain farms, vegetable farms and livestock farms from zero production levels to where they are able to consistently supply the market.” The ADA has trained 1 726 individuals and created and/or sustained a total of 2 250 jobs during the construction of physical infrastructure, planting and harvesting seasons, all within the Enterprise and Value Chain Development Programme.

frica has been identified as a sleeping economic giant in terms of its resource potential. Agriculture has the potential to transform the African continent provided all the African countries can work together towards providing support to farmers. This is according to the newly appointed CEO, Zenzele Ndlela, of the Agribusiness Development Agency (ADA). “We all need to put our heads together and stimulate this sector in order to eradicate the twin problems of poverty and food crisis,” he says. ADA is a public entity that was established as a “one-stop-shop” to assist entrant black commercial farmers who had acquired land through the Land Reform Programme. However, the entity has taken on a new strategic direction and aligned its services with those of the Department of Agriculture and Rural Development (DARD). “We seek to promote, establish, facilitate and support the growth of blackowned and managed agricultural enterprises along KWAZULU-NATAL BUSINESS 2019/20

VISION

MISSION The ADA strives to promote, establish, facilitate and support the growth of black owned and managed agricultural enterprises along agricultural value chains in KwaZulu-Natal through partnerships with individuals, communities, private sector and other public sector institutions in order to achieve a transformed agribusiness sector in the province.

OUR VALUES

• Integrity: We commit ourselves to ensuring that our purpose, practices and values are ethically sound, at all times • Accountability: We take accountability for all our actions in dealing with our Clients and Stakeholders and are mindful of possible consequences emanating from our decisions • Excellence: We commit to providing quality services and products to all our clients at all times consistent with the spirit of Batho-Pele • Innovation: We commit to strive for continuous improvements through innovation and promoting a learning organisational culture

FOCUS ON OPERATION

“A diverse, deracialised, prosperous, and sustainable agribusiness sector in KwaZulu-Natal.”

Organisational values define the key principles and associated behaviours that are required by employees when executing the strategy and functions of the organisation and state what the beneficiaries and stakeholders can expect from the organisation. The values of the ADA are:

In keeping with the outcome of the alignment process between DARD and ADA, the Agency will concentrate on the following: • agribusiness development and in particular on agro-processing • on high impact and complex projects that will assist in unlocking public and private resources, as well as assistance in turning around declining industries • look at niche and new products that support import substitution and exports

OUR PRODUCTS AND SERVICE OFFERINGS

We have developed products and services according to four broad areas in supporting agribusiness development: Knowledge and Information Services – these include design and dissemination of agribusiness models, agribusiness training modules and business leadership development; Financial Resources Mobilisation – these include targeted development finance and investments; Agribusiness Facilitation Services – these include connecting agribusiness entrepreneurs to information, technological innovations and markets; Agribusiness Market Infrastructure Services – these include agribusiness capacity and systems development; as well as investments in infrastructure.

OVERVIEW

Forestry and paper Diversification is a growing trend.

ig forestry and paper companies have been preparing themselves for change for many years now. The computer age and digitalisation presented complicated challenges to paper manufacturers and companies. In response, Sappi and Mondi, global leaders in paper and packaging with strong roots in KwaZulu-Natal, have embraced diversification. Sappi has a strong emphasis on dissolving wood pulp and Mondi reports growing demand in its packaging divisions. Although Mondi closed one machine at its Durban plant in 2018, it will continue to make uncoated fine paper for the domestic market at the plant. Recent upgrades to Mondi’s woodyard at Richards Bay have made a big impact on efficiencies. The addition of an unbleached kraftliner product has expanded the company’s range. Three investments in eastern Europe will see the company’s saleable pulp and paper production go up by about 9% overall. Sappi makes paper at two mills in South Africa: the mill at Tugela makes 185 000 tons of speciality paper per annum. A big focus for the company is dissolving wood pulp, made at one site in America and two in South Africa. Dissolving wood pulp is sold as a raw material to converters around the world who produce from it a range of products such as textiles, cellophane wrap and pharmaceuticals. KWAZULU-NATAL BUSINESS 2019/20

SECTOR INSIGHT TWK is the latest agricultural company to list on a stock exchange.

The giant Sappi Saiccor mill 50km south of Durban is the world's biggest manufacturer of dissolving wood pulp. The mill's capacity is 800 000 tons, which makes it the biggest of its kind in the world. Sappi is actively looking into the new fields of bio-materials and bio-energy. Both company’s investments in the province are outlined in a special feature elsewhere in this publication. National production figures in the forestry sector declined

manufacturing, auto identification, bar coding and labelling sectors. As such, we are proud to be the sole distributor in Southern Africa for many of the leading internationally-renowned brands in those sectors in which we operate, such as HP Indigo, Komori, Flint, Fujifilm, Argox, CipherLab, Datalogic and Brother. FOCUS And, with a focus always on providing highly skilled services and post-sales support, we’re ensuring our customers are maximising their potential for growth and profit - day in, day out!

Kemtek pursues continual growth

NATIONAL: 0861 KEMTEK • JHB: +27 (0)11 624 8000 • PTA: +27 (0)12 804 1410 • DBN: +27 (0)31 700 9363 • CPT: +27 (0)21 521 9600 • PE: +27 (0)41 364 3690 WWW.KEMTEK.CO.ZA

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J25589

Kemtek keeps abreast of industry developments and potential new markets while offering the best solutions to customers.

2019/02/14 16:12

Targeted industry events and product demonstrations are proving highly popular with Kemtek customers and prospective customers alike.

ong-established in the lithographic, flexographic, digital and large-format printing and packaging arenas, Kemtek has evolved over time into a multi-pronged organisation, entrusted with channel responsibility by many of the world’s leading brands in the barcoding and labelling sectors through widespread professional resellers, plus 3D printing, through its joint venture partner Rapid 3D. Aligning with internationally-acclaimed brands is one aspect of Kemtek's continued success, coupled with expert sales and service support, and an agile and specialised national distribution network, annually achieving some 15 000 deliveries. This fast-growing enterprise also represents specialist additive manufacturing equipment and materials providers in multiple sectors including aerospace, automotive, manufacturing, medical, dental and jewellery, with brands such as EOS, Envisiontec, MCor and Zortrax.

customers means delivering the most advanced technological equipment and service, backed by a total commitment to service excellence. With digital printing firmly growing in Southern Africa, Kemtek and partner, HP Indigo, have recently expanded their labels and packaging portfolio with technology solutions to drive printing and converting toward more flexible, productive and profitable digital printing. Taking digital finishing to the next level is the ability to integrate the Indigo 6900 with an HP Indigo GEM digital embellishment unit – a onepass label printing and embellishment system for spot, tactile, foil, holograms, mini textures and lamination. In the packaging sector, Kemtek’s alliance with Flint Flexographic products goes from strength to strength. Flint has extended the range with nyloflex FTF-UV plates, designed for high-resistance to UVbased inks, and nyloflex FTP for paper packaging applications such as multiwall sacks and liquid dairy cartons. Another important development between Kemtek and Flint Group is a distribution agreement that allows Kemtek to supply the full range of ThermoflexX laser imaging systems in South Africa.

Building on core strengths Creating value on a sustainable basis is Kemtek’s marketing approach that's based on a detailed understanding of markets and the needs of the end user. These needs are then married to the technologies provided by Kemtek's principal brands. Providing a winning edge for all Kemtek's

For more information, visit www.kemtek.co.za.

KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW in 2017 for the third year in a row. Forestry SA reports that tonnage sales were nearly 2% down on the previous year, at 15-million tons. Wattle showed the largest decrease while pulpwood was the only category to increase, but by less than 2%. The National Department of Agriculture, Forestry and Fisheries reports that South Africa has a shortage of sawn timber and anticipates further shortages in the future. Despite this overall trend in the national forestry picture, TWK has announced that it wants to buy 11 000 hectares of forest land to support its wood chip sales (especially to China and Japan) and timber exports. TWK is an agricultural company that grew out of the Transvaal Wattlegrowers Cooperative and which became the latest such company to be listed when it joined the ZAR X in 2017. The KwaZulu-Natal provincial government's strategy of creating Industrial Economic Hubs (IEHs) includes the development and expansion of wood processing in the Harry Gwala District Municipality. This is in the wooded south-western part of the province and includes the towns of Kokstad, Harding, Ixopo and Underberg. Nampak produces crêpe paper at Verulam and Rafalo produces tissue paper. SA Paper Mills is another paper producer. Mpact's upgrade of its Felixton mill has increased capacity and improved efficiency. The project cost R765-million and takes overall production up to 215 000 tons and a lightweight containerboard option has been included in the product lines. This is in response to market demand for lighter packaging. Mpact has plastics and paper operations, with the paper section divided into three divisions: paper manufacturing, corrugated and converted paper products and recycling. The Merensky Group operates one softwood sawmill and a panel-processing plant in Kokstad that is geared to manufacture according to customers’ needs in any sector. Export is done through the Port of Durban. NCT Forestry Co-op Limited is a key timber-marketing entity with more than 2 000 members and three wood-chipping mills.

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

KWAZULU-NATAL BUSINESS 2019/20

R&B Timber Group has three pole treatment plants and is headquartered in Harding. Flaxton Timbers operates out of Ixopo and Natal Forest Products is in Richmond.

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

PROFILE

Sustainable growth Mondi is a global leader with a culture that delivers sustainable growth.

ondi is a global leader in packaging and paper, delighting its customers and consumers with innovative and sustainable packaging and paper solutions. Mondi is fully integrated across the packaging and paper value chain – from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is embedded in everything Mondi does. In 2018, Mondi had revenues of €7.48-billion and underlying EBITDA of €1.76-billion. Mondi globally is leading the response of the packaging and paper industry in developing sustainable solutions to address key environmental and social challenges. The group is taking a sciencebased approach and working with partners across the value chain to develop innovative sustainable solutions that are fit for a circular economy. By taking a holistic view, Mondi believes it can meet the needs of each customer, their products and the planet to contribute to a better world. Peter Oswald, Mondi Group CEO, commented: “As a global packaging and paper group, it is essential for our business, as well as the planet, to drive innovation and change throughout the value chain. We don’t see sustainability as a trend, it’s a requirement. Mondi’s unique offering of highperformance paper, plastic and hybrid solutions means that we can find the most sustainable fit for each application.”

Mondi South Africa Our South African business sustainably manages some 250 000 hectares of plantation forests and manufactures and sells pulp, virgin containerboard and uncoated fine paper products. We have around 1 500 employees working in our forestry operations and two mills located in Richards Bay and Merebank, Durban.

Strategic advantages Our focus is on leveraging our strong domestic market position and the global competitiveness of our Richards Bay mill. With a history spanning more than 50 years, we understand the value of being efficient, cost-competitive and customer-focused. Our passion for performance will always be central to the way we run our business and is demonstrated through a continuous focus on quality, productivity and efficiency. The fundamental principle behind operational excellence at Mondi is the desire to do more with less. We invest in and manage our business to ensure that our manufacturing operations maintain their cost advantage, that our forestry operations are managed sustainably for a secure timber supply, that we support our customers' success and invest in the development of our people and communities.

KWAZULU-NATAL BUSINESS 2019/20

FOCUS

Developing innovative solutions for a circular economy Mondi is committed to best practice in forestry management and production.

ondi South Africa is at the forefront of sustainable business practices. “It’s exciting to be playing a lead role in Mondi’s sustainability story. There are so many areas we are proud of but three stand out for me. From the work we are doing to reduce our water impact, to managing water catchment areas and wetlands through our work with partners, to using significantly less water in our operations. Second is the progress we have made in becoming a diverse and inclusive workplace, where people can grow to their full potential and contribute to our success. And then of course our globally competitive operations that produce high-quality, fully-recyclable products from sustainably sourced fibre,” explains Viv McMenamin, CEO Mondi South Africa.

Sustainable fibre The sustainable management of our forestry operations is key in managing our overall environmental impact, helping KWAZULU-NATAL BUSINESS 2019/20

to protect ecosystems, and developing resilient landscapes. Wood is one of the primary raw materials and our staff work hard to provide the best assurance for our stakeholders that the wood and fibre we use comes from responsible sources. Plantation forests in South Africa are managed in a way that secures their longterm biological integrity, social value and productivity. Maintaining FSC™ certification of forests is also an important part of our management approach. It assures compliance with globally recognised standards for sustainable forest management.

Water as a constrained resource Given the critical importance of water to business, to local communities and to other stakeholders, we strive to manage water use wisely and efficiently – especially in water-stressed regions. We are committed to reducing the specific contact water consumption of our pulp and paper mills by 5% by 2020, against a 2015 baseline. Drought conditions in South Africa remain a concern and we continue to look for opportunities to improve water security in the areas where we operate. The focus is on reducing water consumption, in particular at the Richards Bay mill.

FOCUS Biodiversity and ecosystems Responsible forest management involves increasing the long-term productivity and preserving ecosystem values in rural landscapes and protecting high conservation value areas such as wetlands. Degradation of ecosystems and loss of habitats and species has a significant negative effect on the ecosystems that both communities and business rely on. We are committed to protecting biodiversity and ecosystem services in our forestry operations. Maintaining an effective network of highconservation value areas and valuable habitats, and on imitating natural dynamics for key types of ecosystems where possible, is another focus.

WWF-Mondi Water Stewardship Programme Mondi promotes a landscape approach to freshwater stewardship. The focus of the long-standing WWFMondi Water Stewardship Programme (previously the WWF-Mondi Wetlands Programme) has grown from managing and rehabilitating wetlands with different groups of land-users (including Mondi) to catalysing water stewardship at the landscape scale, including ensuring collaboration and action by different land-users in the uMngeni and Mvoti River catchments, both of which are strategically important water-supply areas for KZN’s economic hubs. In 2014, following many years of collaboration, Mondi Group and WWF launched a global partnership to promote responsible forestry and a sustainable pulp and packaging sector. In 2017, this global partnership was extended for another three years and the WWF-Mondi Wetlands Programme was renamed the WWF-Mondi Water Stewardship Partnership, reflecting its broadening focus on catchment-based water stewardship. Water stewardship assessments were conducted for the Richards Bay mill and plantations in South Africa. This was measured against the international Alliance for Water Stewardship Standard, a globally-applicable framework for major water users to understand their water use and impacts. The outcomes are now being used to investigate meaningful, cost-effective improvements to management systems to meet the core requirements and to advance some of the requirements. In 2018, Mondi joined the WWF Climate Saver's Programme, WWF's global platform to engage businesses and industries on climate and energy.

Eco-efficient products The investment to expand our product range by producing unbleached kraftliner in addition to white-top kraftliner at the Richards Bay mill has been welcomed by customers. Baywhite, Baycel and Baykraft products are certified for food packaging (ISEGA) and Mondi has adopted Good Manufacturing Practice (externally certified).

KWAZULU-NATAL BUSINESS 2019/20

FOCUS

Inspiring Mondi people for long-term success Leading the way in transformation and enterprise development. has over 30 contractors as enrolled small businesses, with a focus on growing skills, management capability and improving their operational know-how. We are able to maintain a steady supply of highquality fibre from a network of small forest enterprises with on average 87 000 tonnes of the timber supplied to our Richards Bay mill coming from these suppliers.

Land claims

ondi’s significant activities in a number of key areas reflect a strong commitment to transformation and B-BBEE. This is confirmed by Mondi’s Level One contributor status under the under the Forestry Sector Broad Based Economic Empowerment codes, as verified by an independent assessment.

An innovative sale and leaseback model has been developed with a successful mechanism for settling claims with and supporting land-claimant communities. Following a successful land-claims process, communities have ownership of the land and associated rental revenues but also receive assistance to develop sustainable forestry enterprises and forestry-related skills. In this way communities immediately derive a rental income from their land but also develop the know-how to potentially farm timber for themselves into the future. Approaching land reform in this developmental and inclusive way means we are able to retain a sustainable source of wood supply into the future.

Enterprise development Mondi Zimele, established in 2007, is our small business development organisation. Its initial focus was on accelerating black economic empowerment in the forestry value chain. In 2012 the focus expanded to incorporate support for communitybased small businesses around Mondi’s operations. This was enabled through the establishment of the Mondi Zimele Jobs Fund, an enterprise development initiative co-funded by the Jobs Fund. Since 2012, Mondi Zimele has provided approximately R100-million in loan funding to assist over 200 local businesses in the creation of more than 2 800 jobs. Mondi Zimele has also been instrumental in the establishment of several land claimant community contractors where we continue to emphasise productivity improvement, business administration and compliance as the key to success for these SMEs. The Mondi Zimele and Department of Trade and Industry (dti) Forestry Contractor Incubator Programme KWAZULU-NATAL BUSINESS 2019/20

Skills and people development

FOCUS R8-BILLION INVESTMENT OVER FIVE YEARS At the President’s Investment Summit in 2018, Viv McMenamin, CEO Mondi South Africa, announced, “We focus on investing in our world-class assets to maintain our cost advantage. Over the next five years we will be investing a total of around R8-billion in our South African operations, which includes ongoing investment in our forestry assets and the modernisation of our pulp, containerboard and paper assets, subject to approval by the Mondi boards.”

the recently expanded Ligbron E-learning system is now operational in a further three rural schools. Each e-learning classroom has an e-Boxx with a SMART interactive whiteboard, a digital camera, sound system and alarm system. This technology facilitates the weekly live streaming of mathematics and science lessons that are shared by using video conferencing and desktop sharing. During live streaming, the image of the teachers/ learners from linked schools is visible on the SMART board. The SMART boards display the presentation and any student and teacher can write on the SMART board and ask questions from their own school. Mondi believes strongly that by working in partnerships with government, communities and NGOs we will be able to find sustainable land reform solutions. We believe that being part of the solution to global challenges will secure the long-term success of our business and the wellbeing of our communities and other stakeholders. www.mondigroup.com

PART OF THE SOLUTION

We invest significantly in skills and leadership development, offering talented individuals interesting careers as part of a global group. We are particularly proud of the progress women are making in Mondi South Africa, holding positions such as CFO, Procurement Director, Head of Mondi Zimele and as artisans, foresters, safety managers, nursery manager and in the fields of engineering, finance, human resources and more.

Viv McMenamin, CEO Mondi South Africa, adds: “Our South African business continues to be a strong contributor to Mondi’s success story. From our sustainably managed forests, to our world-class pulp and containerboard operation in Richards Bay, to being the number one office paper producer in South Africa. We believe in the value of being part of the solution to global and local sustainability challenges and I am proud of the work we are doing in partnership with our communities, government and other key stakeholders. This gives me great confidence in the future of Mondi South Africa!”

Community development Our well-established approach is focused on investing in communities living on our land or near operations. A leading community development initiative is the Mkondo Development Project (Piet Retief), a pioneering public-private partnership focused on improving the living conditions of people in isolated villages on forestry land, and to find sustainable solutions to alleviate poverty and offering security of tenure. The pilot Jabulani Agri-village has been completed and eight other Agri-villages are in progress. The commitment to education is widespread and

KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW

Mining Second smelter to be activated at Isithebe foundry.

SECTOR INSIGHT Most of South Africa’s export coal passes through the Richards Bay Coal Terminal.

innish company Metso will spend about R53-million on building a second furnace at its Isithebe foundry in the iLembe District Municipality. This is in response to increased demand for large crusher wear parts. The KwaZulu-Natal foundry is one of five foundries the company runs on four continents. The renovated foundry will be able to manufacture wear parts for the Nordberg® MP2500 cone crusher as well as for Metso and third-party primary gyratory wear parts. The first products from the new furnace are scheduled for May 2019. RBM mines the minerals sands of the northern KwaZulu-Natal coast and operates out of Richards Bay. The main products of the RBM mine are zircon, rutile, titania slag, titanium dioxide feedstock and high-purity iron. Tata Steel KZN's high-carbon ferrochrome plant at Richards Bay went into business rescue and then liquidation before being bought by Luxembourg-based Traxys Africa in the middle of 2016, after a court ruled in its favour. Traxys has chrome mines Mpumalanga and Limpopo provinces. Tata Steel did not have its own mines. The KZN Sands mineral sands operation comprises a central processing complex in Empangeni and the Fairbreeze Mine. Expenditure over several years (which started in 2016) is expected to rise to R5-billion as it expands. Tronox, which is listed on the New York Stock Exchange, is the major shareholder in KZN Sands. The development of a new titanium dioxide pigment plant was announced in 2017 by Nyanza Light Metals and its technology partner,

ONLINE RESOURCES Geological Sciences, University of KZN: www.geology.ukzn.ac.za Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za

KWAZULU-NATAL BUSINESS 2019/20

Avertana of New Zealand. The use of stockpiled waste slag (from mines in Mpumalanga) sets this R4.5-billion project apart. Other products will include gypsum, aluminium sulphate and magnesium sulphate. Production was scheduled to begin in 2019. The Hillside aluminium smelter at Richards Bay run by South Africa Aluminium is now a 100% South32 asset. Most of the product (highquality primary aluminium ingot) is exported but some liquid metal form is sent to Isizinda Aluminium which supplies Hulamin, a company that has had a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major aluminium rolling operator in the region and it makes rolled products and extrusions. Other processing facilities in the province include the steel plant owned by Arcelor Mittal in Newcastle and Safa Steel's metalcoating factory in Cato Manor. Some of the coalfields of the province have been revived. Petmin's Somkhele Anthracite Mine, north of Richards Bay, has one of the biggest reserves of open-pit anthracite in South Africa, with measured and indicated reserves of more than 51-million tons across its four areas.

OVERVIEW

Engineering Construction is booming north of Durban.

SECTOR INSIGHT Marine engineering is a provincial strength.

roperty company Tongaat Hulett Developments won Visionary Client of the Year at an engineering awards event in 2017, a recognition of how much construction is underway north of Durban on land that used to be covered in sugar cane. The South African construction sector is experiencing tough times, with more than one company going into business rescue in 2018, which could explain why the annual Cesa Aon Engineering Excellence Awards acknowledged the developer of eight large projects covering commercial, industrial, retail and residential. The other mega-project that has created a lot of work for engineers has been the multi-year Western Aqueduct project to bring fresh water to greater Durban. The Western Aqueduct Joint Venture comprising three companies, Knight Piésold Consulting, Naidu Consulting and Royal Haskoning DHV, acted as agents for eThekwini Water and Sanitation. Stefanutti Stocks Pipelines played a big role, and there were opportunities for excellence and innovations in areas such as break-pressure tanks which were designed by Royal Haskoning DHV and built by ICON Construction. Marine repair and engineering form a significant sector in the province, with established companies such as EBH South Africa offering comprehensive services at the ports of Durban and Richards Bay (pictured). Both ports are expanding (Durban is building a cruise liner terminal, for example) and will continue to attract engineers.

ONLINE RESOURCES Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za South African Forum of Civil Engineering Contractors: www.safcec.org.za Southern African Institute for Industrial Engineering: www.saiie.co.za

Dormac, which is headquartered in the Bayhead area of the Port of Durban, is best known for its marine engineering but it offers specialised services to the sugar industry and provides machinery for industrial giants like Toyota and Defy. All of the province's biggest industries require sophisticated engineering skills: aluminium smelters in Richards Bay and steel works in Newcastle, Richards Bay and Cato Ridge. There are also chemicals and plastics production plants, and large automotive works. The Transnet Engineering (TE) plant in the Port of Durban houses 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. The School of Engineering at the University of KwaZulu-Natal offers a variety of degree options, ranging from undergraduate qualifications to doctorates. The School offers eight areas of specialisation including Bioresources, Electronic and Computer Engineering, and Land Surveying.

KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW

Oil and gas Italian company Eni has offshore prospecting rights.

ni, one of the world’s biggest energy companies, has an agreement with Sasol Petroleum International to explore for hydrocarbons off the coast of KwaZulu-Natal. The permit was granted in 2013 but moves to start operations in 2018 attracted the attention of concerned environmentalists. Eni, which has headquarters in Rome and operates in 71 countries, has several projects off the coasts of Mozambique and Kenya. 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. If a private partner can be found, a liquid natural gas (LNG) plant will produce 2 000MW on a site in Richards Bay. This forms part of national government's allocation of 3 126MW to natural gas in its medium-term energy policy to 2030. The National Department of Energy (DoE) decided in 2016 that one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme would be allocated to Richards Bay. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub. The fact that neighbouring Mozambique has significant offshore deposits is a factor in this ambition. To produce its allocation of 2 000MW, the plant would have to use a million tons a year of liquid natural gas (LNG).

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

KWAZULU-NATAL BUSINESS 2019/20

SECTOR INSIGHT A liquid natural gas plant is planned for Richards Bay. A new unit within the National Department of Trade and Industry (dti) is focussed on importing LNG, particularly from Mozambique and Botswana. Local demand for LNG is expected to increase to more than 10-million tons per annum. Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP) which started delivering fluids in 2012. Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines is said to reduce the number of fuel tankers on South African roads by about 60%. KwaZulu-Natal is home to two major oil refineries and is the first link in the pipeline chain that links Gauteng province, the industrial heartland of South Africa, with vital fuels. The Port of Durban handles 80% of South Africa's fuel imports. KwaZulu-Natal is thus a key player in the country’s oil and gas industry.

OVERVIEW

Construction and property Infrastructure and multi-use developments are forging ahead.

SECTOR INSIGHT Development on the N3 is underway.

ob losses and business rescues were recurring themes in the South African construction sector in 2017 and 2018. The announcement in late 2018 that work on the R4.3-billion Oceans Umhlanga project had been halted confirmed that KwaZuluNatal was not immune to these trends, but indications were that work on the residential, hotel and retail mall development will resume in 2019. A number of other large projects in the province are bucking the national trend. According to the organisers of the KZN Construction Expo, which was held in February 2019, infrastructure will attract more than R200-billion over seven years and R35-billion will be spent over 15 years at the Port Waterfront development. The King Shaka International Airport and associated Dube TradePort are also attracting property investments. Two new industrial parks are being developed: Cornubia is part of a larger project near Umhlanga and Clairwood in Durban South will offer more than 300 000m² of A-grade industrial space. Tongaat Hulett has for several years been rolling out a series of developments on land it owns north of Durban, but in 2018 it launched the nTshongweni Urban Development on either side of the busy N3 highway west of the city. Land use will be housing, light industry and logistics with a private developer, Fundamentum Asset Management, committed to building a shopping mall in the central business district. The website of Tongaat Hulett Developments (THD) lists 16 completed projects, including La Lucia Ridge and the Zimbali Coastal

ONLINE RESOURCES Construction Industry Development Board: www.cidb.org.za Master Builders Association KwaZulu-Natal: www.mba-kzn.co.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Valuers: www.saiv.org.za

KWAZULU-NATAL BUSINESS 2019/20

Resort. Some current projects are massive in scale. Cornubia covers 1 300 hectares about 7km from the airport and encompasses industrial, commercial, residential sections. The Sibaya Casino and Entertainment World is located within the Sibaya Coastal Precinct which THD is building as seven distinct nodes along 1 000 hectares of coast. Bridge City (pictured) is one of the most ambitious projects: a joint venture between the eThekwini Municipality and Tongaat Hulett, it is a presidential project that combines industrial, commercial, retail and residential opportunities located between Pinetown and Umhlanga Ridge. KwaZulu-Natal has a number of brick companies and four cement factories. Three of these are run by NPC-Cimpor (at Simuma, Durban and Newcastle), and the company has a further six sites for concrete and two for aggregate. Lafarge has a large depot and cement clinkergrinding operation in Richards Bay, six aggregate quarries and eight Readymix plants around the province. The Supreme Award for Excellence in Construction (Master Builders KwaZulu-Natal) was awarded in 2018 to WBHO Construction for the Absa Regional Office KwaZulu-Natal.

OVERVIEW

Water South Africa’s first mobile desalination plant has been installed.

SECTOR INSIGHT Durban wastewater is to get new technology.

ichards Bay has installed a 10-container desalination plant next to the municipal water treatment plant at Alkanstrand. The first mobile sea water purification unit in South Africa, it comprises 10 containers and is located adjacent to the water treatment plant at Alkantstrand. It can deliver 10 megalitres of drinking water. However, the high cost of electricity means that the unit is used sparingly. Solar energy is being investigated as a possible alternative. In 2018 JG Afrika delivered a R72-million desalination plant (pictured) to South32's Hillside aluminium smelter in the same town. New technology has been installed at the Verulam Wastewater Treatment Works of the eThekwini Municipality. Murray & Roberts Water and its European technology partner, Organica Water, has installed an environmentally-friendly system that uses 30% less energy and produces 30% less sludge. The area north of the Durban central business district is one of the fastest-growing urban areas in South Africa, with a number of large office and accommodation projects going ahead simultaneously. This is a welcome development for the economy, but the new buildings also create pressure on infrastructure. The multi-year, R250-million Northern Aqueduct Augmentation project was initiated in 2014 and the fifth phase of the project has recently begun. This will provide water for Durban North, Umhlanga, Newlands, KwaMashu, Phoenix and Cornubia.

ONLINE RESOURCES Mhlathuze Water: www.mhlathuze.co.za National Department of Water and Sanitation: www.dwa.gov.za Umgeni Water: www.umgeni.co.za Water Research Commission: www.wrc.org.za

One of the many challenges faced by the South African water sector is a shortage of engineers. A study jointly commissioned by the Water Research Commission and the South African Local Government Association (SALGA) found that the country's four-in-a-million ratio of engineers is a long way from the required 50-per-million. Umgeni Water currently supplies more than 400m³ of potable water to its six large municipal customers: eThekwini Metropolitan Municipality, iLembe District Municipality, Sisonke District Municipality, Umgungundlovu District Municipality, Ugu District Municipality and Msunduzi Local Municipality. The company has five dams, 10 waterworks, five watertreatment plants and two wastewater works. Large parts of the northern part of the province are served by Mhlathuze Water. The utility has assets valued at more than R3-billion and its area of supply covers 37 000m². Nedbank is putting R9-million over five years into clearing alien vegetation in the country's watercatchment areas, including in KwaZulu-Natal. The Nedbank sponsorship of the WWF's Water Balance Programme has seen water flowing more freely in the Umgeni catchment area. KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW

Manufacturing The Blue and Green economies hold potential for KZN manufacturers.

SECTOR INSIGHT ArcelorMittal SA turned a profit for the first time since 2010. • Africa Bespoke Apparel has opened in Verulam.

he manufacturing sector contributes 17.7% to the provincial Gross Domestic Product (GDP) of KwaZulu-Natal. The strongest export sectors are base metals (32% including aluminium), mineral products such as ores, vehicles and chemical products. New opportunities in the Blue economy (ship-building and maintenance, oil rig repair and servicing) and the Green economy (solar panel manufacture, solar, biogas and wind energy plant construction, management and maintenance, heating and cooling devices) are set to grow in KwaZulu-Natal with the allocation of geographical hubs to support these sectors, and the introduction of policies and incentives designed to make them competitive. The Richards Bay Industrial Development Zone has been identified as an area that can attract investment in both of these sectors while the Port of Durban already has a strong boat-building and maintenance sector. The nine-tug contract put out by Transnet National Ports Authority (TNPA) is worth R1.4-billion and was won by Durban-based Southern African Shipyards in Durban. Most of the tugs have been built and sent to ports around the country. iLembe District Municipality is intended as the renewable energy hub of the province, with renewable energy components manufacturing as a key subsector. The first beneficiary of national government’s black industrialist support programme was revealed in January 2019 when Africa Bespoke Apparel launched its R81-million factory (pictured) in Verulam. Various interventions in the textile, footwear and clothing sector have helped to revive the industry. The footwear sector in particular is showing good recovery after taking a battering from Chinese imports. The purchase of 39% of KWAZULU-NATAL BUSINESS 2019/20

Eddels Shoes by management and staff has paid off, with 385 staff employed in making 2 700 leather shoes every day. Two international safety footwear firms operate out of Pinetown: Bata Industrial and Beier. The latter company has joined forces with three other South African safety footwear manufacturers to form the BBF Safety Group. Shanghai, with which KwaZulu-Natal has signed a memorandum of understanding, has agreed to run an exchange p ro gr amm e fo cussin g o n clothing and textiles. Canvas and Tent Manufacturing (Pty) Ltd has more than 400 employees in Ladysmith. There are 219 clothing companies in the province (Coface). Ninian & Lester has about 1 500 employees. Carpet manufacturers Belgotex Floorcoverings and Ulster Carpets have facilities in Pietermaritzburg and Durban respectively. Home appliance manufacturer Defy, which is part of the Turkish group Arçelik, employs about 2 600 people. Böhler Uddeholm in Pinetown produces tooling materials and welding consumables.

OVERVIEW

Chemical assets 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. Steel and aluminium are other heavy manufacturing products. The automotive industry is covered in a separate article. Newcastle is a chemical manufacturing hub. The big steel works of ArcelorMittal SA produce by-products such as ammonium sulphate, and large companies such as Karbochem, Bayer, African Amines and SA Calcium Carbide also operate in the area. ArcelorMittal SA turned a profit in 2018 for the first time since 2010, based on increased demand from other parts of Africa. To take advantage of the existing strengths of cities and districts in the province, a network of Industrial Economic Hubs (IEHs) is being developed in KwaZulu-Natal. Leading the process is the Department of Economic Development, Tourism & Environmental Affairs (DEDTEA). A Halaal Manufacturing Park is being considered by DEDTEA, finance institution Ithala, the South African National Halaal Authority and business leaders. Hulamin is a leader in aluminium finished products. The company makes rolled products at Edendale, Pietermaritzburg and Camps Drift while its Pietermaritzburg facility for making extrusions is one of the three in the country. The group headquarters of Africa’s biggest pharmaceutical manufacturer, Aspen, are in La Lucia Ridge. German chemicals group Lanxess has built a carbon dioxide concentration unit at its existing plant in Newcastle. The company makes tanning raw materials at Merebank in Durban and rubber chemicals in Isithebe north of Durban. AECI has a big presence in the province under the Chemical Services

ONLINE RESOURCES Aluminium Federation of South Africa: www.afsa.org.za Chemical and Allied Industries’ Association: www.caia.co.za Enterprise iLembe: www.enterpriseilembe.org.za Manufacturing Circle: www. manufacturingcircle.co.za Plastics SA: www.plasticsinfo.co.za

banner. Chemical Initiatives runs an elemental-nutrient sulphur plant in Umbogintwini. SA Paper Chemicals operates a big plant at Isithebe. Protea Chemicals, has a large manufacturing plant at Mobeni. Sappi Saiccor's Umkomaas plant is the biggest producer of specialised cellulose in the world with production edging upwards every year towards full capacity of 800 000 tons per annum. Illovo Sugar manufactures downstream products such as furfural (used in lubrication oil), furfuryl alcohol, diacetyl (a flavouring in margarine) and ethyl alcohol. Kynoch makes fertilizer at plants in Durban and Richards Bay. Foskor's acid division manufactures sulphuric acid, phosphoric acid and granular fertilizer in Richards Bay. ChemSpec makes paint at Canelands. KwaZulu-Natal produces nearly a third of South Africa’s plastic requirements. Nampak has several packaging facilities in the province and MPact’s Pinetown facility specialises in FMCG containers. Macbean Beier Plastics and PCI also operate out of Pinetown. Packaging and paper group Mondi’s Richards Bay mill and its paper plant at Merebank are among the province’s most significant manufacturing sites.

KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW

Automotive Quality

throughout

CREDIT BELL EQUIPMENT

Mahindra bakkies are being assembled at the Dube TradePort.

n 2018 AIH Logistics started assembling Mahindra and Bolero SECTOR INSIGHT bakkies kits imported fromunits India on aand site at position the Dube With anfrom annual capacity of 60 000 per year their as a globally respected extra heavy duty truck design and manufacturing company, KAMAZ relies on strong strategic partnerships with have a TradePort. The 5 000m² plant is owned by Automotive Investment • The Bag Ladies premium original component ensure quality, and with the ongoing success of their new home on vehicles. the site of Holdings (AIH), which formedmanufacturers AIH Logisticstospecifically to deal a tow bar manufacturer. the Mahindra contract. The air-suspended seats and cabs create industry-leading comfort that drives productivity, safety and The intention is to make 2 500 bakkies per year, with an option ensures driver satisfaction. to expand production to 4 000 and to increase sales of bakkies in Well matched drivetrains bolster andin the ability toRichards deliver results stronger the South Africanengines market.and The company soldperformance 4 650 bakkies 2018, Bay while facility of heavystructures aboutfabricated half of its vehiclepromote sales in durability. South Africa. equipment manufacturer Bell Brink Towing Systems is not just supporting a local SMME, it Equipment, upwards of 11 000 is hosting one in its Pietermaritzburg factory. Brink has recently people are employed. Both increased annual capacity to 100 000 units which will mean more companies are market leaders. work for The Bag Ladies, who produce protective bags for the tow Bell is in the process of bars. The Bag Ladies previously repaired clothing and did some bag transferring production of its making, but with their own premises within the Brink facility (and current truck range to its factory advice on business management and the purchase of industrial- in Germany, which will double strength sewing machines), they can now set their sights higher. in size to accommodate the Brink’s largest customer is the Ford Ranger. growing demand for trucks in The Mathe Group’s tyre recycling plant at Hammarsdale has Europe and America. The shift quickly increased capacity to 150 000 used truck tyres per year and will not affect employment Inter-wheel and inter-axle Durable ZF gearboxes deal with Air-conditioned ergonomic Over 2 million engines built intends 200 000differential soon. A of theharsh rubber crumb levelscabsatwiththe Richards lockquarter for increased environments. provegoing strength past and reliability. air-suspended seats Bay traction. operator comfort. product goes to Van Dyck Floors. Other applications include modified site for because Bell will start bitumen and as a component of artificial grass. assembling www.bellequipment.com Kamaz heavy-duty l3 Toyota South Africa and Bell Equipment are manufacturing giants. trucks in 2019 for the African Between the Toyota plant at Prospecton south of Durban and the market. Kamaz (pictured), a

Industry leading components

KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW Russian brand that has won 14 Dakar rallies, is known for its reliability in tough conditions. Bell’s intention is to increase the percentage of local components over time. Bell is best known for its heavy equipment which is primarily used in the mining and construction sectors. The listed company reported a 6% rise in revenue for the six months to June 2018, an amount of R3.7-billion. Toyota recently invested a further R6.1-billion into its already very large plant at Prospecton. The company regularly sells about a quarter of the vehicles sold in South Africa, and accounts for the same proportion of export volumes. The Corolla car, the Hilux bakkie and the Fortuner SUV are manufactured at the plant. Powerstar, a Chinese state-owned brand, assembles trucks in Pietermaritzburg on a site formerly used by Super Group. The companies that make Powerstar in Asia are the China North Vehicle Corporation (Norinco Motors) and BEIBEN, who produce about 60 000 heavy-duty commercial duty vehicles every year at their plant in Inner Mongolia.

Automotive components KwaZulu-Natal has a substantial and varied automotive components sector which includes large manufacturers such as Apollo Tyres and GUD Filters. Thirty-nine companies are currently members of the Durban Automotive Cluster which is funded by the municipality. Together, these firms have about 17 000 employees. In line with the policy of developing Industrial Economic Hubs, the Durban Automotive Supplier Park is being built at Illovo, south of Durban and near to the Toyota plant. The Dube TradePort Corporation will manage the project, which covers 1 013ha. Other partners are the eThekwini Municipality, Toyota and the provincial government. The aim is to attract car assembly and component manufacturing companies. Trade and Investment KwaZulu-Natal (TIKZN) estimates that the province's component automotive manufacturers enjoy a combined turnover approaching R10-billion.

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

Keeping MAN and Toyota supplied is the R300-million operation, Duys Engineering Group. This diverse group of companies includes in its business plan the supply of truck bodies and truck components and has production plants at New Germany (Pinetown) and Richards Bay, from where it services the mining industry. Toyota Boshoku manufactures seats and does the interior trim on contract for Toyota. International company GUD Filters has a big presence in the province. Headquartered in Prospecton, where more than 1 500 people work at one of its factories, the company has another plant in Pietermaritzburg and a distribution centre in Pinetown that concentrates on exports. Indian-owned Apollo Tyres SA makes Dunlop products at two large factories in the province: truck tyres are made in Durban where 840 workers are employed and a passenger car tyre plant in Ladysmith (1160 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 (airconditioning and cooling systems) has a factory and its headquarters in Durban. Ramsay Engineering supplies cross-car beams for BMW and Ford. Funding was received from the Industrial Development Corporation (IDC) to buy new tool-making technology to make this possible. KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW

ICT Port Shepstone has a new incubator.

SECTOR INSIGHT Dube iConnect is an accredited service provider.

SmartXchange SMME Incubator has been launched in Port Shepstone on the South Coast. The concept of ICT has been expanded to include media and electronics, so the hub is called an MICTe Incubator. The province’s SmartXchange is an example of a successful publicprivate partnership that supports businesses in the information technology and communications sector. Incubation strategies for startups and skills development (including links to educational institutions) are important parts of the organisation’s brief. After the successful launch of the first such incubator outside Durban in the Ray Nkonyeni Local Municipality, there are now plans to establish three more, at Newcastle, Richards Bay and Pietermaritzburg. Spending on information and communications technology (ICT) has been steadily increasing in the private and public sectors in recent years in KwaZulu-Natal. The eThekwini Metropolitan Municipality, which administers Durban, has actively been promoting ICT since the launch of its MetroConnect programme in 2008. A key component of the strategy has been the sale at hugely discounted rates of spare capacity on the municipal fibre network. The Dube TradePort (pictured) has spent more than R100-million on ICT infrastructure that includes two data centres. Dube iConnect has a licence from the Independent Communications Authority of South Africa to be a service provider. An advanced metro Ethernet network connects businesses within the precinct and surrounding areas with one another and with the world.

ONLINE RESOURCES Dube TradePort: www.dubetradeport.co.za Information Technology Association of South Africa: www.ita.org.za SmartExchange: www.smartxchange.co.za South African Vanguard of Technology: www.savant.co.za

KWAZULU-NATAL BUSINESS 2019/20

KwaZulu-Natal has an established skills base in microprocessors and radio-based systems and a strong manufacturing base. Some companies within the domestic sector specialise in supporting specific systems. In the case of Pinetown-based RN Software, support is provided for Syspro, an enterprise resource software (ERP) system most commonly applied to manufacturing and logistics to enhance performance and control costs. South Af rican Vanguard of Technology (Savant) is a Department of Trade and Industry (dti) programme. It is the marketing and awareness programme for the South African ICT and electronics sector. The aim is to develop South African exports and to attract foreign investment. The State Information Technology Agency (SITA) is a state-owned enterprise that provides ICT services to government and leads projects in the sector. Sentech is the state agency that provides broadband infrastructure and signals for the country's broadcasters. Internet connectivity is provided to government departments, municipalities and other institutions through a VSAT service.

OVERVIEW

Education and training University research is linked to development issues.

he reputation of the University of KwaZulu-Natal (UKZN) as a leading research institution was enhanced in 2018 with the opening of a Chemistry Postgraduate Research Facility at the School of Chemistry and Physics in Pietermaritzburg. The university aims to align its research programme with important areas of development such as food security, health, liveable cities and climate change. The R30-million facility was funded mainly by the National Department of Higher Education and Training (DHET). UKZN also hosts the National Research Foundation. There are two universities and two universities of technology in KwaZulu-Natal, and the national distance university, the University of South Africa (Unisa), has a presence in five locations. USB Executive Development offers business courses for executives. The Durban University of Technology (DUT) has six faculties operating in seven campuses in Durban and in the Midlands. DUT is well known for its outstanding graphic-design school and offers one of only two chiropractic programmes in South Africa. The University of Zululand offers diploma and degree courses on two campuses at Empangeni and Richards Bay. The unbundling from the successful Curro group of a separate tertiary entity which listed on the JSE as Stadio Holdings is a good indicator of the growth of the private sector in education. Stadio currently has three institutions: Southern Business School, AFDA (the School for the Creative Economy) and the Embury Institute for Higher Education which has recently opened a campus in Musgrave, Durban. There are six Curro schools in KwaZulu-Natal. Advtech, the other big private company, has 27 tertiary campuses nationally, in addition to its 78 schools operating under a variety of labels. Advtech operates 10 educational sites in KwaZulu-Natal. The Provincial Government of KwaZulu-Natal, through the national Expanded Public Works Programme (EPWP) and other job creation programmes has committed to providing training to marginalised

ONLINE RESOURCES Independent Schools Association of Southern Africa: www.isasa.org KwaZulu-Natal Department of Education: www.kzneducation.gov.za National Research Foundation: www.nrf.ac.za

SECTOR INSIGHT Training is part of the Expanded Public Works Programme. communities to help people become more employable. In 2018, more than 41 000 full-time equivalent jobs and 166 000 work opportunities were offered, and this is set to increase. Technical and Vocational Education and Training (TVET) Colleges are tasked with bridging the skills gap. TVET colleges are concentrating on 13 trade areas, including bricklayers, millwrights, boilermakers and riggers. KwaZuluNatal has nine such colleges with a total enrolment of about 80 000. R16.5-billion has been allocated by national government to skills development and infrastructure over the medium term. Coastal KZN TVET College gives students practical experience through facilities such as the Nongalo Industrial Park, where school furniture is repaired, and burglar bars and computer tables are made. The college has several sites on the South Coast and caters for 15 400 students. Majuba TVET College focuses on engineering as the coal and steel industries are prominent in Newcastle. The Mnambithi TVET College is located in the Battlefields Route tourism area and offers National Diploma courses in tourism, among other qualifications.

KWAZULU-NATAL BUSINESS 2019/20

OVERVIEW

Banking and financial services New banks are changing the face of the sector.

hen Capitec was granted a banking licence in 1999, it was a rare event. Since 2017, a number of new entrants have started to change the face of South African banking. Tyme, or Take Your Money Everywhere, was granted a licence in 2017. Other prospective new banks are state-related enterprises: Ithala, Postbank and a Human Settlements Development Bank. The Ithala Development Finance Corporation has functioned for many years in the province as the provider of funds for small enterprises, especially in areas where infrastructure is poor and access to traditional banking services is not good. The provincial government, which runs Ithala, wants to launch it as a bank. Three state entities are merging to create the new Human Settlements Development Bank: the National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency. The focus will be on financing housing for poorer households and for large state-funded housing projects. Part of the drive is to integrate cities better and to combat the legacy of the spatial divide that apartheid left behind. Private sector investment will be sought. The Chartered Institute of Government Finance, Audit and Risk Officers

ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Chartered Institute of Government Finance, Audit and Risk Officers: www.cigfaro.co.za Financial Sector Conduct Authority: www.fsca.co.za Insurance Institute of South Africa (KwaZulu-Natal): www.iikzn.co.za South African Institute for Chartered Accountants: www.saica.co.za

KWAZULU-NATAL BUSINESS 2019/20

SECTOR INSIGHT Cigfaro's annual conference is in Durban in 2019.

(Cigfaro) advises institutions, trains its members in public finance and promotes the interests of professionals in the public sector. It also develops and assesses qualifications and advises tertiary institutions on the requirements for course. Cigfaro also runs Public Sector Audit and Risk training sessions and the national conference will be held in Durban in October 2019. The South African Institute for Chartered Accountants International will provide training in KwaZuluNatal (Umhlanga) in financial reporting standards for SMMEs while the the Insurance Institute of KwaZulu-Natal (IISA) holds regular education workshops. One such meeting, a legislative workshop, is jointly hosted by IISA, the Financial Sector Conduct Authority and the South African Institute for Chartered Accountants. The institute’s mentorship programme is run in association with the Musifunde Training Centre.

OVERVIEW

Development finance and SMME support Support is available for entrepreneurs.

small business can become a substantial business quite quickly with the right support. Programmes such as the Black Umbrellas offer different levels of support, from early advice about business plans through office support to mentoring. Civtech Engineers, a Richards Bay consultancy, has grown its revenue and staffing levels as a result of being on the full incubation programme of Black Umbrellas. Agriculture is the focus of a wide-ranging initiative in the Ulundi district. A grouping called ULUMA has been formed which aims to help farmers, SMMEs and co-operatives to benefit in a holistic way from the produce they farm. The Zululand District Farmers Association, several other NGOs and Standard Bank are working together with the likes of Mangosuthu University of Technology (MUT) and the Innovation and Technology Business Incubator (Invotech) to expose farmers to new issues and techniques. Operation Vula is a provincial government initiative to ensure that co-operatives and small businesses get a leg-up into the formal economy through state-led infrastructure programmes that assist them, and through procurement policies that favour them. The Coastal KZN TVET College has been training members of cooperatives and people working in small, medium and micro-enterprises (SMMEs) in the skills that will help them do well in business. The Small Enterprise Development Agency (Seda) is active in supporting entrepreneurs. Seda gives non-financial support through training, assistance with filling in forms, marketing and creating business plans. In KwaZulu-Natal, Seda runs 12 Incubators which either help new businesses get started or with the rehabilitation of existing enterprises.

ONLINE RESOURCES KwaZulu-Natal Department of Economic Development and Tourism: www.kznedtea.gov.za National Department of Small Business Development: www.dsbd.gov.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za

SECTOR INSIGHT The Coastal KZN TVET College offers business skills training. Three models are used: Technology Demonstration Centres (demonstration and training); Technology Incubators (where the focus is rehabilitation); and Hybrid Centres, which combine elements of the other two models. The KwaZuluNatal incubators include ICT and construction (three centres each), furniture and hi-tech (two each), chemicals and essential oils. The IDC provides finance across a range of sectors from agriculture to tourism. It has holdings in several companies with a presence in KwaZulu-Natal: 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. All of the major banks have SMME offerings. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership. Toyota South Africa Motors is funding the newly created Toyota Empowerment Trust (TET) to the tune of R42-million. KWAZULU-NATAL BUSINESS 2019/20

INTERVIEW

Selfmed Medical Scheme Christo Becker, the Principal Officer at Selfmed Medical Scheme, outlines the advantages of a self-administered scheme.

How did Selfmed begin and how has it evolved?

The Scheme initially formed part of the Sanlam Life Insurance stable, created in 1965 and formally registered in 1972. This makes Selfmed one of the most experienced medical aid schemes in the industry. At Selfmed we have a handson approach, and this resulted in our taking control of our own Client Services Centre, or Excellence Centre in 2006. We thereafter progressed to taking over the full administration function in 2010; also recently bringing our Managed Healthcare inhouse.

Christo Becker

What is your market?

Historically membership comprised individuals and their families. The introduction of the Selfnet options in 2015 and 2016 allowed us to reach a younger audience. This was also the opportunity to branch out into corporate marketing, offering membership to blue-collar employees. We have seen great success in this area. Is there flexibility for clients?

The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med XXI, and Selfnet and Selfnet Essential. Each product is designed specifically for a life stage, as the needs of a member changes. As the person advances in life and starts a family they will move towards the Med XXI or Selfsure options, for example, which have a wider range of benefits relevant to a young family.

BIOGRAPHY Christo started his 21-year career in healthcare as a paramedic in Fire and Disaster Management Services. In 2001 he completed an MBA with the intention of moving his career towards hospital management. He has worked as hospital manager in several private facilities. His passion for people and strategy has ensured that the hospitals he has managed have grown rapidly while focusing on sustainability. With selfmotivation and a commitment to continual improvement, Christo implements positive changemanagement.

How is Selfmed handling ever-rising costs?

The biggest challenge facing the healthcare industry is the significant rise in healthcare costs, with healthcare inflation exceeding general inflation. This compels us to proactively introduce mechanisms to manage these costs. Selfmed is applying machine learning to the claims database to draw a more accurate picture of a member’s specific needs. The information can then be used to engage members on an individual basis – if we can intervene early it is to the benefit of all parties. How does Selfmed Medical Scheme differentiate from its competitors?

In a traditional medical aid/administrator environment all administered functions rest with an administrator. As such, a medical aid would be fully dependent on its outsourced administrator to inform it of any issues relating to its members. Being fully self-administered allows Selfmed to take total ownership of all its member interactions and address any administrative problems or complaints immediately. We do not have an electronic routing system; you speak to an individual. This personalised hands-on approach is fundamental to our model of building a credible member experience.

KWAZULU-NATAL BUSINESS 2019/20

LISTING

KwaZulu-Natal Provincial Government A guide to KwaZulu-Natal’s provincial government departments. All addresses are located in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kznonline.gov.za. Office of the Premier Premier: Sihle Zikalala

Education MEC: Kwazikwenkosi Innocent Mshengu

5th Floor, Telkom Building, 300 Langalibalele Street Tel: +27 33 341 3300 Fax: +27 33 331 7368

Anton Lembede Building, 247 Burger Street Tel: +27 33 846 5000 | Fax: +27 33 355 1293 Website: www.kzneducation.gov.za

Agriculture and Rural Development MEC: Bongiwe Nomusa Sithole-Moloi

Health MEC: Nomagugu Simelane-Zulu

Cedara College, Cedara Road Tel: +27 33 335 9100 Fax: +27 33 343 8255 Website: www.kzndard.gov.za

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

Arts and Culture MEC: Hlengiwe Goodness Slindile Mavimbela

222 Jabu Ndlovu Street Tel: +27 33 264 3400 Fax: +27 33 394 2237 Website: www.kzndac.gov.za Community Safety and Liaison MEC: Thomas Mxolisi Kaunda

179 Jabu Ndlovu Street Tel: + 27 33 341 9300 Fax: + 27 33 342 6345 Website: www.kzncomsafety.gov.za Cooperative Governance and Traditional Affairs MEC: Sipho Hlomuka

330 Langalibalele Street Tel: +27 33 395 2831 Fax: +27 33 345 6432 Website: www.kzncogta.gov.za Economic Development, Tourism and Land Affairs MEC: Nomsa Dube-Ncube

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

Human Settlements and Public Works MEC: Neliswa Peggy Nkonyeni

203 Church Street Tel: +27 33 392 6400 | Fax: +27 33 392 6490 Website: www.kznworks.gov.za Provincial Treasury MEC for Finance: Ravigasen Ranganathan Pillay

Treasury House, 145 Chief Albert Luthuli Street, Tel: +27 33 897 4200 | Fax: +27 33 342 2486 Website: www.kzntreasury.gov.za Sport and Recreation MEC: Hlengiwe Goodness Slindile Mavimbela

135 Pietermaritz Street Tel: +27 33 897 9400 Website: www.kzn.dsr.gov.za Social Development MEC: Nonhlanhla Mildred Khoza

208 Hoosen Haffejee Street Tel: +27 33 264 5402 Fax: +27 33 341 9610 Website: www.kzndsd.gov.za Transport MEC: Thomas Mxolisi Kaunda

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

LISTING

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

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

uMzimkhulu Municipality

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

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

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

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

eMadlangeni (Utrecht) Municipality

Mandeni Municipality

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

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

Tel: +27 39 259 5000 | Fax: +27 39 259 0427 Website: www.umzimkhululm.gov.za

KwaDukuza Municipality

Newcastle Municipality

Maphumulo Municipality

Tel: +27 34 328 7600 | Fax: +27 34 312 1570 Website: www.newcastle.gov.za

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

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

Ndwedwe Municipality

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

Dr Dlamini Zuma Municipality

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

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

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

uBuhlebezwe Municipality

City of uMhlathuze Municipality

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

Tel: +27 35 907 5000 | Fax: +27 35 907 5444 Website: www.umhlathuze.gov.za

Greater Kokstad Municipality

KWAZULU-NATAL BUSINESS 2019/20

LISTING

Mthonjaneni Municipality Tel: +27 35 450 2082 | Fax: +27 35 450 3224 Website: www.mthonjaneni.org.za Nkandla Municipality Tel: +27 35 833 2000 | Fax: +27 35 833 0920 Website: www.nkandla.org.za uMfolozi Municipality Tel: +27 35 580 1421 | Fax: +27 35 580 1141 Website: www.umfolozi.gov.za uMlalazi Municipality Tel: +27 35 473 3300 | Fax: +27 35 474 4733 Website: www.umlalazi.gov.za

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

UGU DISTRICT MUNICIPALITY 28 Connor Street, Port Shepstone 4240 Tel: +27 39 688 5700 | Fax: +27 39 682 1720 Website: www.ugu.gov.za

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

Ray Nkonyeni Municipality

Mpofana Municipality

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

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

Umdoni Municipality

Msunduzi Municipality

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

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

uMuziwabantu Municipality

Richmond Municipality

Tel: +27 39 433 3500 | Fax: +27 39 433 1208 Website: www.umuziwabantu.gov.za

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

Umzumbe Municipality

uMngeni Municipality

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

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

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

uMshwathi Municipality Tel: +27 33 816 6800 Fax: +27 33 502 0286 Website: www.umshwathi.gov.za

KWAZULU-NATAL BUSINESS 2019/20

LISTING

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

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

Big 5 Hlabisa Municipality

Alfred Duma Municipality

Tel: +27 35 838 8500 | Fax: +27 35 838 1015

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

Jozini Municipality

Inkosi Langalibalele Municipality

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

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

Mtubatuba Municipality

Okhahlamba Municipality

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

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

uMhlabuyalingana Municipality

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

Tel: +27 35 592 0680 | Fax: +27 35 592 0672 Website: www.umhlabuyalingana.gov.za UMZINYATHI DISTRICT MUNICIPALITY Princess Magogo Bld, 39 Victoria St, Dundee 3000 Tel: +27 34 219 8000 | Fax: +27 34 219 1940 Website: www.umzinyathi.gov.za

Abaqulusi Municipality

Endumeni Municipality

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

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

eDumbe Municipality

Msinga Municipality

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

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

Nongoma Municipality

Nquthu Municipality

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

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

Ulundi Municipality

uMvoti Municipality

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

Tel: +27 33 413 9100 | Fax: +27 33 417 1393 Website: www.umvoti.gov.za

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

KWAZULU-NATAL BUSINESS 2019/20

SAVE THE DATE FUTURE EVENTS East london icc

AUDIT&RISK RISK

I N DA BA

10-12 10-12

april april

2 20 01199

PUBLIC SECTOR FINANCE GRAP

SEMINAR

8-9 JULY 2019 EKURHULENI

7-9 OCTOBER 2019

C IG FARO

ANNUAL

CONFERENCE dURBAN icc

INDEX

INDEX Agribusiness Development Agency (ADA)..............................................................................32 Black Umbrellas..................................................................................................................................17 Chartered Institute of Finance Audit and Risk Officers (CIGFARO)..................................63 Durban Chamber of Commerce and Industry.......................................................................... 2 Durban International Convention Centre (Durban ICC) ....................................................... 7 Enterprise iLembe.............................................................................................................................22 Invest Durban.................................................................................................................................. IFC Kemtek Imaging Systems.......................................................................................................... 9, 35 Mondi Group South Africa...................................................................................................... 37-41 Nedbank........................................................................................................................................ 24-27 Petroleum Agency SA......................................................................................................................15 RN Software....................................................................................................................................... IBC Selfmed......................................................................................................................................58, OBC Transnet Pipelines...................................................................................................................... 45-47 University of Zululand ...................................................................................................................... 5

KWAZULU-NATAL BUSINESS 2019/20

LEVEL1 B-BBEE CONTRIBUTOR RN Software is the largest SYSPRO value-added reseller in KwaZulu-Natal with offices in Durban and Sandton with the vision of becoming the largest reseller nationally.

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We assess and determine corrective action in the IT sector supplying ERP services to government agencies and mid to large-sized businesses.

We programme current business reporting into business intelligence and graphical dashboards integrated into the ERP. We provide analytical business insights and sequential upgrades to SYSPRO version 8.

We specialize in industry-specific consulting, IT services, ERP business process implementation, infrastructure and full development centre. We have completed in excess of 130 installed sites.

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CONTACT US Durban: 15 Paradise Place I Cowies Hill I Pinetown Sandton: 42 Tenth Avenue I Rivonia I Sandton +27 (31) 702 6087 | info@rnsoftware.co.za | mnayagar@rnsoftware.co.za

www.rnsoftware.co.za

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