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2016/17 EDITION

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

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KWAZULU-NATAL BUSINESS 2016/17

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KWAZULU-NATAL BUSINESS 2016/17


CONTENTS

CONTENTS KwaZulu-Natal Business 2016/17 Edition

Introduction Foreword

9

Welcome to KwaZulu-Natal, one of Africa's tourism and trade powerhouses.

Features Regional overview of KwaZulu-Natal

10

Energy generation and the Oceans Economy hold great promise in KwaZulu-Natal.

KWAZULU-NATAL BUSINESS 2016/17

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CONTENTS

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KWAZULU-NATALBUSINESS 2016


CONTENTS

Introducing the province of KwaZulu-Natal

18

The second-largest provincial economy has much to offer local and international investors.

Major events promoting KwaZulu-Natal as a trade and investment destination

26

The east3ROUTE initiative is playing a major role in boosting trade and investment in the province.

Commonwealth Games 2022 For the first time in its 85-year history, the Commonwealth Games will be held in Africa.

A period of positive growth and development 54 An overview of South Africa's social, political and economic progress and potential.

Growing agri-business in KZN

58

Agri-parks and trade agreements form the backbone of the province's future.

Economic sectors Agriculture

62

The diversity of KwaZulu-Natal's agricultural sector is providing new sources of income. KWAZULU-NATAL BUSINESS 2016/17

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50


CONTENTS Forestry and paper

64

KwaZulu-Natal makes huge amounts of dissolving wood pulp and paper.

Sugar

72

Sugar production levels have been affected by the drought.

Oil and gas

74

Oil and gas companies are exploring off the coast of KwaZulu-Natal.

Mining

78

The rich mineral sands of northern KwaZulu-Natal underpin the province's mining sector.

Manufacturing

80

KwaZulu-Natal makes aluminium, steel, chemicals, vehicles and footwear.

Automotive

84

Bell Equipment and Toyota anchor a strong automotive sector.

Water

86

New dams and pipelines are under construction in KwaZulu-Natal.

Renewable energy

88

Bio-mass is leading the way in KwaZulu-Natal.

Banking and financial services

90

Merchant banking is very competitive in KwaZulu-Natal.

KWAZULU-NATAL BUSINESS 2016/17

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EMNAMBITHI/LADYSMITH MUNICIPALITY Your Partner in Growth and Prosperity VISION By 2020 the Emnambithi/Ladysmith Municipality will be KwaZulu-Natal’s vibrant, industrial, commercial, trade and tourism interlink, where all residents enjoy a prosperous, caring, safe and secure environment which promotes cultural diversity.

MISSION To provide a well-serviced, safe, healthy and economically viable environment that enables all residents to take action so that all communities can enjoy a high quality of life.

LOCATION Emnambithi/Ladysmith is situated halfway between South Africa’s key domestic markets in Gauteng, Bloemfontein and the major export harbour in Durban. The N3 and the N11 national roads provide an easy access to all neighbouring provinces and countries.

ELM Mayor: Cllr M V Madlala

AN ATTRACTIVE INVESTMENT DESTINATION The Emnambithi/Ladysmith town is known for its history in the Promotion of Industrial Development since the early nineteenth century. This is demonstrated through the Municipality’s Incentive Policy for new and expanding businesses, as well as for its Business Retention and Expansion Programme. Ladysmith offers several industrial areas, such as Acaciavale, Danskraal and Colenso, with the largest being the Ithala Industrial Estate located a short distance from the CBD. Factories, industrial sites and affordable labour are readily available and industrial stand sizes vary from 2 000 to 8 000 square metres. The town is a major agricultural zone for dry crops and has abundant water resources, with the largest river (the UThukela River) running through the town. These sites are all easily accessible by road and rail, although the town also has a mini-airport which is designed to serve transportation of goods and small passenger planes. Subdivisions and stand sizes can be negotiated to meet your particular requirements. Assistance will be provided with rezoning and EIA applications. Ladysmith has a wellestablished commercial and social infrastructure. Its residential areas are situated away from the commercial and industrial centres to ensure quiet and pleasant living conditions, it has an array of top schools and Higher Education Institutes which include TVET Colleges, Nursing Schools and so on.

Location

Ithala Industrial Estate

ATTRACTIONS Ladysmith rests on the open floodplains of the Klip River in the foothills of the mighty Drakensberg. It forms a natural gateway to many mountain resorts and the Okhahlamba Drakensberg World Heritage Site is set in some of the most scenic areas in the country. Ladysmith forms part of the heart of the KwaZulu-Natal, “The Kingdom of the Zulus”. The Town is known as the “City of Music” because it’s the birthplace for the multi-Grammy Award winning Isicathamiya Group known as Ladysmith Black Mambazo. It also has various attraction sites such as the Long Tom Cannon in front of the Majestic and Historical Town Hall. Ladysmith lies in the heart of the Battlefields Route and has the province’s greatest number of Battlefields sites and memorials. These sites are brought to life for visitors when accompanied by the qualified tour guides. Major events include the Ladysmith Show, Arthur Creswell Marathon, Van Reenen / Swirnburne Yenza Community Festival, the Annual Battlefields Festival, Nyusi Volume and the Annual Heritage Festival, which provide a vibrant events tourism platform for the town to showcase its rich historical and cultural heritage.

Mr T E Ndlovu Assistant Manager: Local Economic Development Tel: 036 637 2104 / 2090 Cell: 082 497 8743 Email: tendlovu@ladysmith.co.za Mrs R Thomas Assistant Manager: Tourism Tel: 036 637 2231 / 2992 Cell: 083 633 7462 Email: rthomas@ladysmith.co.za


CONTENTS

Development finance and SMME support

102

Funds are available for entrepreneurs in KwaZulu-Natal.

Education and training

104

The education sector in KwaZulu-Natal needs to grow.

Tourism

106

Two international airlines have announced new routes connecting to Durban.

Government 110

KwaZulu-Natal Provincial Government

114

KwaZulu-Natal Local Government

115

MOZAMBIQUE

South African National Government

MUNICIPALITIES IN KWAZULU-NATAL SWAZILAND Mpumalanga

Reference

Umhlabuyalingana Jozini

uPhongolo

eDumbe eMadlageni

Sector contents

58

Newcastle

uMkhanyakude

Abaqulusi

Amajuba

Free State

Index

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KWAZULU-NATALBUSINESS 2016/17

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Ulundi

Endumeni

uMzinyathi

Mtubatuba Mthonjaneni Nkandla

Msinga

Ntambanana

uThungulu

Ukhahlamba uMtshezi

Mbonambi

uMhlathuze

uMlalazi

Imbabazane

uMvoti

KZDMA23

LESOTHO

KZDMA27

Hlabisa

Nqutu

Indaka

uThukela

13 14 117

KZDMA27

Emnambithi/ Ladysmith

KZDMA23

Maps Locator map Regional map Municipal map

The Big Five False Bay

Nongoma

Zululand

Dannhauser

Mpofana

KZDMA22

Maphumulo

uMshwathi

uMngeni

iLembe

uMgungundlovu Impendle

KZDMA43 Kwa Sani

Ingwe

Sisonke

Maphumulo

Msunduzi Richmond Mkhambathini

eThekwini Metropolitan Municipality

uBuhlebezwe

uMzimkulu Greater Kokstad

Umzumbe uMuziwabantu

INDIAN OCEAN

N

Vulamehlo

Ugu

KwaDukuza Mandeni

Umdoni


FOREWORD

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse Editor: Simon Lewis Writing: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter Production: Lizel Oliver Ad sales: Sam Oliver, Gabriel Venter, Jeremy Petersen, Nigel Williams, Veronica DeanBoshoff and Sydwell Adonis Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution and circulation manager: Edward MacDonald

KwaZulu-Natal Business A unique guide to business and investment in KwaZulu-Natal.

T

he 2016 edition of KwaZulu-Natal Business is the eighth issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide to the KwaZulu-Natal province. The province is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy. To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), 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 other business-to-business titles that cover all nine provinces, complemented by our flagship publication, South African Business.

Printing: FA Print

Chris Whales Publisher, Global Africa Network Media

DISTRIBUTION KwaZulu-Natal Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; 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 and companies.

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 flickr.com, Wikimedia Commons, MAN.co.za, icc.co.za, Rio Tinto, SA Tourism, Skyscrapercity, Jackson's African Safaris and Pixabay. Cover image: Grant Pitcher Photography.

chris@gan.co.za

PUBLISHED BY 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

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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A REGIONAL OVERVIEW OF

KWAZULU-NATAL

Energy generation and the Oceans Economy hold great promise in KwaZulu-Natal. By John Young

T

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 second-biggest contributor 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.

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SPECIAL FEATURE In recent months, Samsung Electrics has chosen the province as the site of a $20-million television factory, a Chinese company intends establishing a multi-billion-rand steel plant at Richards Bay and a pipe-manufacturing concern has put R300-million into a new plant. Provincial exports rose to R92-billion in 2013 (up from R85-billion in 2012) and will have done even better in 2015 because of the relatively weaker rand. 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. 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. Toyota and Bell Equipment play a big role in the automotive sector, while the Engen Oil Refinery and dissolving pulp manufacturer Sappi are amongst other strategically important entities in the provincial economy. Sugar, tourism and forestry and paper are the other important sectors driving growth and employment in KwaZulu-Natal and these will be referred to again later in this article. The King Shaka International Airport (with its own trade port and industrial development zone) is another of the province's logistics key points which has the potential to boost the regional economy in a number of sectors, particularly agricultural export and tourism.

KWAZULU-NATAL BUSINESS 2016/17

The province's other zone is the Richards Bay Industrial Development Zone (RBIDZ). In his State of the Province address in February 2016, Premier Mchunu announced these recent investments: titanium plant (R4.5-billion); bio-mass plant (R2billion); pipe manufacturing plant (R300-million); paint manufacturing (R16-million); logistics services (R20-million).

New opportunities KwaZulu-Natal province has a very long coastline that stretches from Port Shepstone 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 located at 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 massive quantities of coal, while the Port of Durban is the busiest port in Africa. However, planners want to massively increase the economic benefits that the ocean can bring. An Oceans Economy Review Workshop has come up with a range of sub-sectors that can help to 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 so-called Oceans Economy will easily dovetail with any and all of the plans to boost the capacity of the harbours at Durban and Richards Bay, as well as to explore for gas and oil in the Indian Ocean. Ship-building and ship repairs is an existing industry but it is not very big in the province at this stage. If oil rigs were to start visiting the KZN coastline on a regular basis then this industry would grow exponentially.

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SPECIAL FEATURE KwaZulu-Natal is anxious to get with the programme and is targeting the forestry sector (waste and pulp) and sugar sector (cane and beet) to provide feedstock for bio-mass energy generation. One project that is part of the national programme is under way using these materials, but many more are planned. The forestry and sugar sectors in the province actually generate enough of their own power that they could be selling power to the grid, but the framework does not yet exist for that to happen. The creation of that legislation or regulation must be a priority. The Mondi Group are leading the way with 58% of the fuel consumption of their operations being derived from renewable sources. 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 continent leader in sugar production. Sappi's export of dissolving wood pulp makes it a world leader in its field.

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 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 is nicely in line with an 'Oceans Economy' approach. By mid-2016 a bill will be put before the provincial legislature to bring into existence the KwaZulu-Natal Maritime Institute. This will be run out of the restructured Sharks Board and training programmes will be coordinated with Transnet to make sure that relevant courses are offered. Since 2012, 800 students have been studying maritime-related courses. The other big potential growth area in KwaZuluNatal is energy. Several licences have been granted for offshore exploration and the hope exists that something will be found – the vast gas fields off the coast of Mozambique are so close after all! However, if energy does not come from the sea through offshore drilling for oil or gas, there remains plenty of potential on land. So far KwaZulu-Natal has trailed the rest of South Africa when it comes to the innovative and exciting Renewable Energy Independent Power Producers Programme (REIPPP). Tens of billions of rands and hundreds of megawatt hours have been allocated to dozens of projects (some of which are already connected to the grid) but these have mostly been solar in the Northern Cape and wind in the Eastern Cape.

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 ZIMBABWE MOZAMBIQUE

BOTSWANA Limpopo NAMIBIA Mpumalanga Gauteng

North West

SWAZILAND

Free State Northern Cape

KwaZuluNatal

LESOTHO

Eastern Cape Western Cape

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SPECIAL FEATURE 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.

Regions KwaZulu-Natal has 11 district municipalities, the most of any province in South Africa and, in economic terms, the province offers diverse opportunities. Southern 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 could become another port, if the money can be N17

Bethal

N17

SWAZILAND

KWAZULU-NATAL PROVINCE Ermelo Standerton

Mpumalanga

Piet Retief

N11

N2

Volksrust

Paulpietersburg

Vrede

Pongola

R33

Utrecht Newcastle

R69

R34

Vryheid

Free State N3

R34

Dundee R68

uLundi

R33

Ladysmith N3

R74

eMpangeni

Kranskop

KWAZULU-NATAL BUSINESS 2016/17

RA LESOTHO KE NSB ERG

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Mooi River

R33

Stanger

Howick

Ballito

N2

Eastern Cape

uMhlanga

N3

Pinetown R56

iXopo

Harding

Darnall

N2

Tongaat

Underberg

Kokstad

Richards Bay

Gingindlovu

Greytown

PIETERMARITZBURG

D

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

St Lucia

Mtubatuba

Melmoth

Colenso

Winterton

Hluhluwe N2

R65

N11

R74

Mkuze

Hlabisa

Glencoe

Harrismith N5

Bergville

R66

Nongoma

Estcourt

Geography

MOZAMBIQUE

Convention Centre Complex, which hosts the annual Tourism Indaba. The province's 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 the 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. The building of the King Shaka International Airport to the north of Durban allows tourists to get to superb beaches and game farms very quickly, and the airport has its own industrial development zone, the Dube TradePort. New international direct flights have been announced; 4.5-million passengers passed through the airport in 2014/15, almost 300 000 of whom were foreign visitors or tourists (ACSA).

DURBAN aManzimtoti

uMzinto

uMkomaas

N2

INDIAN OCEAN

N

Hibberdene uMtentweni Port Shepstone Margate Southbroom Port Edward

Motorway

Main Road Railway


SPECIAL FEATURE 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. 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 is 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, 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. Northern region 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 demand for the fuel from the country's power stations. 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.

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PROFILE

Trade & Investment KwaZulu-Natal Your knowledge partner in business.

South Africa is rated among the top 10 in the world in the category of investor protection and good fiscal governance, and the World Bank has rated South Africa among the top 30 countries in terms of its ease of doing business. South Africa is also regarded as one of the least costly areas in which to establish a business. In line with this, the province of KwaZulu-Natal has established itself as a premier domestic and international investment and tourist destination. With two of the busiest ports on the Sub-Saharan African continent, in addition to its world-class road and rail infrastructure, KwaZulu-Natal enjoys the strategic and competitive advantage of being a global gateway for trade into Southern Africa and to the world. Its strategic location and highly developed industrial sector ensure a competitive edge for both local and foreign investors and offer unique advantages for local exporters.

tional markets. The organisation identifies, develops and packages investment opportunities in KwaZuluNatal and provides a professional service to all its clientele. It also brands and markets KwaZulu-Natal as an investment destination, retains and expands trade and export activities and links opportunities to the developmental needs of the KwaZulu-Natal community.

Investment in KwaZulu-Natal continues to emerge as a major contributor to South Africa’s growing economy, with the province’s contribution to national GDP amounting to 16%, and it is statistically the secondlargest GDP per region in South Africa.

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

The favourable business environment has made the province a sound investment destination for investors from around the world.

Mission

Mandate

• Brand and market KwaZulu-Natal as an investment

• Identify and package investment opportunities in KwaZulu-Natal.

Trade & Investment KwaZulu-Natal is a South African trade and inward-investment promotion agency that was established to promote the province of KwaZuluNatal as an investment destination and to facilitate trade by assisting local companies to access internaKWAZULU-NATAL BUSINESS 2016/17

destination.

• Link opportunities to the developmental needs of the KwaZulu-Natal community.

• Ensure easy access to investment and export trade opportunities.

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PROFILE • The provision of assistance to emerging interna-

Objectives

tional traders.

• Assistance with international trade enquiries. • Assistance to investors with regard to locating

Trade & Investment KwaZulu-Natal’s business objectives include: • To meet shareholder and stakeholder expectations, TIKZN aims to deliver exceptional professional service levels and support to clients and stakeholders through the following initiatives: • Attracting, developing and retaining highperformance employees with skills and competencies to manage key internal business processes, including marketing TIKZN as an investment promotion agency. • Enhancing TIKZN’s research and knowledge capabilities and using technology as an enabler for its business. • Ensuring corporate governance and finance reporting standards compliance. • Advocating for a conducive business environment in KwaZulu-Natal, in addition to marketing the province as a premier business destination.

suitable premises.

• Assistance to investors in terms of securing project and operational finance. The key priority sectors of focus for the organisation include: • ICT and Business Process Outsourcing • Transport, Maritime and Logistics • Infrastructure Development • Agriculture (Primary and Secondary) • Manufacturing • Mining • Renewable Energy • Tourism Development

Municipal involvement Trade & Investment KwaZulu-Natal (TIKZN) continues to stamp its authority on the trade and investment sector and has been partnering with all spheres of government to support local trade and businesses to create and sustain employment for the people of KwaZulu-Natal. The organisation embarks on municipal roadshows aimed at promoting districts as an investment and trade destination in order to strengthen relationships and the flow of communication between TIKZN and all spheres of government.

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

• The facilitation of joint ventures. • The facilitation of business linkages between small and big business.

CONTACT INFO

mation to both potential and existing investors and traders. Assistance to existing and new investors regarding applications for investment as well as exportmarketing incentives. Assistance to foreign investors in terms of applications for business permits. Negotiations for local government incentives on behalf of investors. The provision of project support and aftercare services to investors.

Durban Office: Physical address: Trade & Investment House, 1 Arundel Close, Kingsmead Office Park, Durban 4001 Tel: +27 31 368 9600 | Fax: +27 31 368 5888 Email: info@tikzn.co.za Gauteng Office: Physical address: 99 George Storrar Avenue, Groenkloof, Pretoria 0181 Tel: +27 12 346 4386 / 6763 | Fax: +27 12 501 1788 Website: www.tikzn.co.za Export Portal: www.exportkzn.co.za

• The timely provision of relevant and reliable infor• • • •

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KWAZULU-NATAL BUSINESS 2016/17


FOCUS

Introducing the province of KwaZulu-Natal The second-largest provincial economy has much to offer local and international investors.

S

outh Africa is one of the world’s top business destinations and is strongly supported by well-developed infrastructure; the province is equipped with every convenience and delivers high levels of service expected by the business world. South Africa is rated number one in obtaining credit and is also rated among the top 10 in the world in the category of investor protection and good fiscal governance. The World Bank has rated South Africa among the top 35 countries for ease of doing business. It is also regarded as one of the least costly areas in which to establish a business. KwaZulu-Natal is a major role-player in the manufacturing and transport and logistics sectors in South Africa and is a premier domestic and international tourist destination. Dube TradePort Aerotropolis, KWAZULU-NATAL BUSINESS 2016/17

which includes King Shaka International Airport, the Inkosi Albert Luthuli International Convention Centre and two of the largest ports on the SubSaharan African continent (the ports of Richards Bay and Durban), are proof of the province’s world-class infrastructure. Investment in KwaZulu-Natal continues to emerge as a major contributor to South Africa’s growing economy and its favourable business environment has made the province a sound investment destination for investors around the world.

Economic overview The province of KwaZulu-Natal has South Africa’s second-largest local economy, contributing 16% to the national economy, and is deemed to be one of

18


FOCUS the country’s leading economic and business hubs. According to Statistics South Africa’s 2011 population census, the province of KwaZulu-Natal is the second most populous province following Gauteng Province.

suppliers at world-competitive prices, provides a real opportunity for investors in these sectors.

Industry Richards Bay is the centre of operations for South Africa’s aluminium industry. The Richards Bay Coal Terminal is the second-biggest exporter of steam coal in the world and the world’s largest single coal terminal, while Richards Bay Minerals is the largest sand-mining and mineral-processing operation in the world. The vehicle manufacturing industry has created a considerable multiplier effect in terms of component manufacturing and aftermarket service. The automotive leather industry has grown rapidly, with exports significantly boosting foreign exchange earnings. KwaZulu-Natal has also recently benefited from rapid industrialisation, thanks to its abundant labour resources and Sub-Saharan Africa’s economic expansion. Numerous industries are located at Newcastle, Ladysmith, Dundee, Richards Bay, Durban, Hammarsdale, Richmond, Pietermaritzburg and Mandeni. The King Shaka International Airport became operational in May 2010, and planning is progressing aggressively to implement Africa’s first green aerotropolis around this airport.

KwaZulu-Natal at a glance Capital city: Pietermaritzburg Main cities and towns: Durban, Ladysmith, Newcastle, Port Shepstone and Richards Bay Provincial head: Mr ES Mchunu Population: 10.3-million (census – 2011) Economically active population: 3.3-million (Q4 2015) Unemployment rate: 23.2% (Q1 2016) Area: 94 361km2 Real GDPR: R480.3-billion (US$37.7-billion) GDPR growth: 2.1% (2014) Per capital GDPR: R44 880 (US$3 520) (2014) CPI: 6.7 (March 2016) Exports: R116.9-billion (US$9.2-billion) (2015) Main ports: Port of Durban, Port of Richards Bay, King Shaka International Airport

Doing business in KwaZulu-Natal KwaZulu-Natal is an important hub of industrial development in Sub-Saharan Africa thanks to its rich natural resources and well-developed infrastructure. Economic activities in the province are mainly concentrated around the Port of Durban and the inland city of Pietermaritzburg, with further significant contributions in the Richards Bay/ Empangeni area, the Ladysmith/Ezakheni area and the Newcastle/Madadeni regions, as well as in the Ugu/Port Shepstone region. KwaZulu-Natal is a competitive region for foreign investment, and more especially export opportunities through the Port of Durban. The province has identified prime targets for inward investment, including textiles, clothing, plastic products, chemicals, fabricated-metal products, automotive components, wood and wood products, footwear, machinery and appliances, business process outsourcing and boatbuilding. The ease with which primary and processed aluminum can be obtained from local

Tourism Tourism is a key driver of the KwaZulu-Natal economy. The province’s tourism attractions are structured around eight tourism destinations, namely Durban, Dolphin Coast (North), South Coast, Zululand, Pietermaritzburg and Midlands, Drakensberg, Elephant Coast and Battlefields. Better known by tourists as the 'Zulu Kingdom', KwaZulu-Natal is a tapestry of warm, subtropical coastal areas, Big Five game reserves, two World Heritage Sites (the uKhahlamba-Drakensberg Park and the Isimangaliso Wetlands Park), authentic cultural routes and worldrenowned historical battlefields. The province enjoys the lion’s share of the domestic tourism market and a growing share of South Africa’s international tourism market, attracting

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approximately one-million foreign visitors and 10.9-million domestic tourists annually. Tourism growth is underpinned by innovative tourism marketing, new and existing tourism-product development and a well-established tourism service industry.

investment advantages and opportunities, enhancing this region’s status as a preferred investment destination. Dube TradePort

KwaZulu-Natal’s continued success in international trade is enhanced through improved transport and logistics infrastructure. The Dube TradePort, which is home to the King Shaka International Airport, incorporates an industrial development zone and will be linked with the existing sea ports of Durban and Richards Bay. This new development will include key components such as a cargo terminal, Tradezone, support zones and the Agrizone. It will present a new-generation, multi-faceted economic hub for the province and the country at large. The multi-nodal, integrated logistics platform bodes well for sustainable job creation and the attraction of further fixed investment. The expanded capability of the new international airport, a key component of the development, will create enhanced levels of service in the movement of time-sensitive manufactured goods and perishables to the global market.

Reasons to invest in KwaZulu-Natal • • • • • • •

Two of the largest and busiest ports in SubSaharan Africa – Durban and Richards Bay Large labour pool Diverse culture Idyllic climate Access to basic services Excellent infrastructure and logistics Gateway to other African countries.

KwaZulu-Natal’s Information Communication and Technology, machinery and equipment sector absorbs roughly half of the total investment flowing into the region while manufacturing attracts about a third of all investment. Tourism is a key driver of economic growth and an important catalyst for future economic development.

Durban harbour

The Durban harbour is one of the busiest in SubSaharan Africa and has one of the world’s largest and best-equipped container terminals, handling 3.6-million TEUs (twenty-foot equivalent units) a

Investment opportunities The province of KwaZulu-Natal offers competitive KWAZULU-NATAL BUSINESS 2016/17

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

Special Economic Zones (SEZs) are loosely defined as designated areas in countries that possess special economic regulations that are different from other areas in the same city. Moreover, these regulations tend to contain measures that are conducive to foreign direct investment. Conducting business in an SEZ usually means that a company will receive tax incentives and the opportunity to pay lower taxes. In KZN, SEZs are viewed as critical, not only in stimulating export growth, but also job creation, foreign exchange earnings, industrial decentralisation, access to foreign manufacturing technology and know-how. The approach to growing the KZN economy firmly revolves around infrastructure development,

year. The harbour’s motor vehicle terminal handles two-thirds of all motor vehicles entering or leaving South Africa. In February 2013, the terminal set a new record in Transnet Por Terminal’s automotive history handling 39 749 units in a single month. The port also boasts a sugar terminal that is responsible for 65% of all the country’s sugar exports. Durban’s direct link to worldwide ports and its reputation for serving the shipping industry is unmatched by any other port in South Africa. Richards Bay harbour

The port is one of South Africa’s eight operational commercial ports under the auspices of the National

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FOCUS enterprise support, investment and trade linkages, and support to key priority sectors (manufacturing, agriculture, tourism, ICT and the green economy). SEZs provide opportunities to exporters located throughout the province – businesses do not necessarily have to be next to the sea and airport to benefit. Simply put, the theory of comparative advantage would position each of the 11 identified districts, so that there is at least one area of economic activity which, relative to other districts, has an advantage by having a lower opportunity cost of production. Some examples of SEZs are Industrial Development Zones, Free Ports, Industrial Parks/Estates, Science and Technology Parks, Sector Development Zones and Spatial Development Corridors. The Oceans Economy

The KwaZulu-Natal province is ideally situated to capitalise on the blue economy, as it boasts two of the Sub-Saharan continent's largest ports as well as vast unexploited inland waterways, and incorporating a 600km coastline. Studies have shown that the country’s oceans could generate an estimated GDP contribution of between R129- and R177-billion by 2033. Freight and logistics are centred primarily around two major transport hubs, namely the ports of Richards Bay and Durban, which are in turn connected to national and regional road and rail networks. Present estimates indicate that the local shipbuilding sector currently generates in excess of R1-billion per annum of which 68% is in foreign currency. KZN is the country’s second most prolific boat-building province and close to 6 000 vessels visit the ports of Durban and Richards Bay each year, thereby providing a steady stream of potential vessel repair opportunities. KZN is growing in the freshwater aquaculture sector; most of the trout farms are located within the Midlands, while ornamental koi carp, catfish and tilapia are also evident throughout the province. The province’s large number of inland cold water tributaries is another contributing factor towards its potential status as a prominent aquaculture centre.

is the second largest in South Africa, and is geared for export, with nearly a third of South Africa's manufactured exports being produced in KwaZulu-Natal. Its diversified nature is significant in the KwaZuluNatal's economic growth rate, and generates 20 % of provincial employment. Manufacturing production increased by 1.9% in February 2016 compared with February 2015. The largest manufacturing industries are the automobile and component sector, pulp and paper products, chemicals and petrochemicals, and food and beverages. The mining sector, which includes titanium dioxide, zircon along with iron, steel and ferroalloys is important. The automotive manufacturing industry in KwaZulu-Natal is largely concentrated within the eThekwini Municipality, but includes firms in Pietermaritzburg, Stanger, Ladysmith and Richards Bay. The industry employs approximately 20 000 people and contributes roughly R21-billion to the local economy per annum. The key automotive player in the province is Toyota South Africa, which has been the market leader for 30 years, and is the number one-selling vehicle brand in South Africa, and is gearing up for a major vehicle export programme. The current production capacity of Toyota South Africa's plant in Durban is in excess of 100 000 vehicles annually. The South African operation now exports built-up units to both Australia and Europe.

Manufacturing

KwaZulu-Natal's manufacturing sector forms part of a significant share of the South Africa economy and KWAZULU-NATAL BUSINESS 2016/17

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Renewable energy

industries: electricity cogeneration and fuel-ethanol production and would lead to the creation of numerous jobs in the rural community.

Globally, the case for the green economy is being made abundantly clear. Renewable energy is the only electricity-generation technology whose price has decreased dramatically, solar PV module prices have fallen by 80% over the last five years while wind turbines have become 30% less expensive. South Africa’s wind resource is regarded as among the top five in the world and could sustain 25% of our grid’s capacity. The province’s renewable energy sector incorporates a whole host of sustainable solutions and includes the installation and supply of solar water heaters and heat pumps, solar energy, biomass, biogas, biofuels, wind, hydro, and energy-efficiency measures. This is further stimulated by publicsector initiatives and research services that incentivise investment in the renewable sector. Major solar, biogas and hydropower projects are also paving the way for future development and investment and currently, the net cumulative value of potential renewable energy investments in KZN stands at R3.2-billion. Possibly the biggest competitive advantage that the province possesses is that which emanates from the sugar and timber industries, which are among the largest in the country. The South African Sugar Association (SASA) is ready to engineer an investment of R20bn-R30bn that would not only maintain sugar production but result in two major new energy

Water

Water is now regarded as the highest global risk in terms of devastation, ahead of nuclear war or a global pandemic. South Africa, the 30th-driest country in the world, not only experiences extreme climate and rainfall fluctuations but its average annual rainfall is half the global average. This rainfall is unevenly distributed throughout a country which currently has access to surface water (77% of total use), groundwater (9% of total use) and recycled water (14% of total use). Water is not only a crucial component for food production, but is also integral to the country’s industrial, mining and powergeneration sectors. It is predicted that over the next five years there will be significant growth in the water infrastructure, wastewater treatment and water recycling sectors. This will become particularly prevalent as the debilitating effects of climate change become more pronounced and the global water industry changes. Consequently the KZN province is investing more in water technologies and infrastructure. Similarly, smart water meters will replace existing ones and huge investments to be made in water infrastructure that includes pumps, pipes, valves,

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FOCUS irrigation equipment, filtration and membrane technology. While it is envisaged that rain and grey water harvesting will be practised countrywide, another area of possible investment will be in wastewater treatment plants that are located in every municipality and which can be retrofitted to produce energy.

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

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

KwaZulu-Natal has two universities, including one of the country’s largest universities, the University of KwaZulu-Natal, it spans five campuses, one in Pietermaritzburg and the remainder in the greater Durban area. There are several technical colleges, the flagship being the Durban University of Technology. There are also a large number of training institutions offering career training. Elementary, primary and secondary schools may be found throughout every urban neighbourhood in KwaZulu-Natal, some of which are ranked among South Africa’s best schools. For further information, see www.kzneducation. gov.za or www.kzneducation.gov.za. Health and welfare

Throughout South Africa, both public and private healthcare is offered. Many corporate employers KWAZULU-NATAL BUSINESS 2016/17

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FOCUS

offer a subscription or a partially subsidised subscription to a medical insurance fund or medical aid fund. Primary healthcare is available free of charge at all government hospitals. For more information on the KwaZulu-Natal Health Department, you can visit www.kznhealth. gov.za.

land is swept by sweet savannah and the province is protected by the towering magnificence of the Drakensberg Mountains. The province generously caters for almost every taste imaginable from historical sites, game reserves and country meanders to arts and crafts, the infamous bunny chow and fascinating cultural experiences. KwaZulu-Natal is also home to award-winning golf courses and a host of world-class festivals and events.

Leisure

KwaZulu-Natal’s subtropical coastline is washed by the warm waters of the Indian Ocean, the hinter-

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FOCUS

Major events promoting KwaZulu-Natal as a trade and investment destination programmes that benefit society. For the first time, the east3ROUTE investment seminar was staged as a standalone event in the Mahé Island, Seychelles, on the 31 July 2015. The role of the east3ROUTE Investment Seminar is to provide a platform for engagement on tourism and related economic activities in this region. Key to this is creating a dialogue between economic role-players in the public and private sectors, thus enabling debate on the key issues facing development in the cross-border regions. Tourism and trade have been identified as the central aspects of this debate with related sectors such as infrastructure development, services, retail and entertainment providing important contributions.

east3ROUTE The east3ROUTE started five years ago and included KZN, Mozambique and Swaziland. The initiative facilitates cross-border tourism for economic development and job creation. The member countries are united by regional geographic proximity as well as their respective developmental agendas. East3ROUTE is not just about trade and tourism. It is about creating trade corridors and commercial platforms that require infrastructure, and it is about these platforms and infrastructure requiring the employment of our people. Ultimately this manifests in job creation, economic development, the reduction of budget deficits, improving the quality of spending, reducing economic constraints and improved support for

and sustain business operations; it enables the Province of KwaZuluNatal to attract investments and new business, thereby creating employment opportunities. Some of the topics covered in the 2015 Export Week programme were: • Trade agreements and their impact on Africa. • Emerging African export markets. • Blue economy relevant to a KZN trade perspective. • Export climate statistics Keynote speakers are invited to the summit to impart their expertise; these include representatives from Trade and Economic Councils, Consul Generals and country representatives, both private and public, captains of industry and industry associates. Export Week highlights the significance of exporting to the KwaZulu-Natal economy and aims at recognising the success of KwaZulu-Natal exporters. Export Week will be held in October 2016.

KZN Export Week The KZN Export week is an annual flagship event hosted by Trade & Investment KwaZulu-Natal that was developed to recognise, promote and assist with growing KwaZulu-Natal’s export businesses and industries. Through the comprehensive programme of activities, it provides professional development and information on growth sectors and market opportunities to KwaZulu-Natal’s new and existing exporters and internationally focused businesses. The essence of this week is to establish an understanding and awareness of exporting and its importance in the economy. The motive behind Export Week is to encourage more companies, especially small companies, to export more and diminish the trade deficit. Exporting creates many opportunities for the company and the economy. Other benefits include: the advantages of a larger market with greater economies of scale it provides an opportunity to grow KWAZULU-NATAL BUSINESS 2016/17

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NEW ONLINE PORTAL MAKES EXPORT SUPPORT JUST A CLICK AWAY w w w . e x p o r

t k z n . c o . z a

The export sector is one of the critical pillars underpinning the economic growth trajectory in KwaZulu-Natal. Exports play a fundamental role in making business thrive both domestically and on a global scale, and are critical not only for foreign exchange earnings but also employment creation and poverty alleviation. It is in this vein that the KwaZulu-Natal Information Portal has been developed, to be a conduit towards the improvement of provincial export promotion efforts, and to act as a one-stop information shop for export role-players in the province. The KwaZulu-Natal Export Information Portal is an easyto-use online resource that not only showcases products and services that are exportable from KwaZulu-Natal but also provides a streamlined access point to acquire all relevant export-related information. The KwaZulu-Natal Export Information Portal is funded by the Department of Economic Development, Tourism and Environmental Affairs (EDTEA) and implemented by Trade & Investment KwaZulu-Natal (TIKZN). The key deliverable of the project is the development of the web portal that will support the drive to promote export activity and thus increase the generation of foreign revenue for the province and for South Africa.

Some of the key features of the portal include: • Product and sector fact sheets • Information on INCOTERMS • Useful export journals • Trade tariffs • Country profi les and information on trade blocs • Information on export councils and industry associations • The opportunity to upload company profi les • Products and services on a self-managed platform • Online trade enquires routed directly to the company of interest • Search capability for exporters, freight forwarders and handling agents, etc. The portal will also provide access to useful export tracking tools and a calendar of export-related events. Key features of the portal include multi-level search capabilities, effi cient access to resource information and an easy-to-use interface. To register on the Export Information Portal go to www.exportkzn.co.za


INTERVIEW

Managing the Port of Durban Moshe Motlohi, Transnet National Ports Authority’s Port Manager: Port of Durban, provides an overview of the Port’s infrastructure and economic potential.

Moshe Motlohi

BIOGRAPHY Motlohi is a graduate of Wits Business School's Advanced Management Programme and holds an Executive MBA from Graduate School of Business at the University of Cape Town. He has operated in the field of logistics for 17 years after beginning his career in the corporate world as an Ops trainee at South African Breweries in 1996, where he worked for seven years as Distribution Manager, Warehouse Manager and Depot Manager. He joined Transnet Port Terminals as Chief Ops Manager in Port Elizabeth before being promoted to head a more complex operation in the Durban Container Terminal, later heading up their new People Transformation and Development Unit. He was later appointed to Head of Strategy at Transnet Port Terminals and Port Manager of the Port of Durban.

How did you get to the position of Port Manager? I am not new to the port environment and logistics space. Over the last 11 years I have held some key positions in the field of Port Operations. I held the following positions at our sister division, Transnet Port Terminals: Chief Operations Manager, Terminal Executive Manager, Head of People Development and Divisional Head of Strategy. Before that I held managerial positions with one of South Africa’s bluechip companies, South African Breweries, where I was a Distribution Manager, Warehouse Manager and Depot Manager. Where do you see potential areas for growth and expansion at the Port of Durban?

At this point the liquid bulk precinct is poised to grow, and this will be followed by the auto sector. Containers will continue following the shifts and performance of the country's GDP. Our ship-repair business is reawakening and is poised to be a game-changer for the Port. Lastly, the passenger cruiseliner business is a growing sector and it is one area where there will be expansion. What are the major investment drives that the Port is promoting?

Transnet is currently in the fourth year of its Market Demand Strategy (MDS), which aims to significantly contribute to the growth of the South African economy. Transnet has budgeted to spend in excess of R300-billion in capital investment over the seven years from 2012 to 2019, of which TNPA’s investment in the South African port system over the next 10 years is estimated at around R56-billion. The South African government’s focus on the Oceans Economy under its Operation Phakisa initiative will be a major driver to invest in the port system. In terms of section 56 of the National Ports Act 12 of 2005, TNPA is mandated to enter into agreements with companies to design, develop, construct, maintain and operate facilities to ensure the provision of port services. The proposed new state-of-the-art Durban cruise terminal is one of the Section 56 initiatives that Transnet National Ports Authority

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has identified to encourage private sector participation as a key element of the MDS. This project is open to investors to come and bid for this opportunity. We also have a few Section 56 opportunities in the bulk liquid precinct. What are some of the Port’s major successes?

strict transformation criteria. We are developing our suppliers and trying to ensure that the Port provides opportunities to local suppliers and the previously disadvantaged. What is the Port of Durban’s competitive advantage?

This Port is in a city that has a well-developed logisDurban has been making strides towards being tics services sector. It is one of the most connected a smart people's Port. We have launched an elec- ports in the world, with the best railway and road tronic data interface system called the Integrated networks to the country's economic hub, Gauteng. Port Management System (IPMS). This is a single Lastly, the Port of Durban has knowledgeable and point of interface for all shipping-related Port engaged employees. activities. We have recently launched the Port Joint Operations Centre. This is designed to house all What features of the Port do you feel are Port users so that vessel planning and monitoring most important to highlight for the overcan be done optimally. We are monitoring Port seas market? efficiencies and have implemented performance The Port has state-of-the-art equipment and is the operating standards for all operations at the ter- most connected port in the country. It is a one-stop minal, marine, haulier / road and rail interfaces. port that offers full services to calling ships. Durban We are exploring ways to re-integrate our Port is the most attractive port (businesswise) because of with the city and communities. Transformation its close proximity to South Africa’s economic hub. of the Port system is another priority and all new Even for the cruise sector, Durban is the closest port Port projects, contracts and leases are subject to to most potential tourists.

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PROFILE

The Port of Durban Often referred to as Durban Harbour, the Port of Durban is the largest (and busiest) shipping terminal in sub-Saharan Africa, handling 80-million tons of cargo each year.

• Pipe racking expansion at Island View and

What infrastructural improvements have been created in the last few years?

Fynnland

• Repairs to the Outer Caisson at the Prince Edward Graving Dry Dock (part of Operation Phakisa)

• Urgent remedial repairs at the BAT Centre, an arts and cultural centre in the Port of Durban

• Procurement of a 6-Ton Forklift for the Prince

Completed work:

• Reconstruction of Island View Berths (2, 5 & 6)

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Edward Graving Dry Dock (Operation Phakisa)

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PROFILE

• Procurement of Welding Equipment Set for Shop •

• Upgrade of employee facilities • Security infrastructure fencing in the Port of

24 (Operation Phakisa) Bayhead Road Upgrade (From Langeberg Road to Pier 1) and Truck Staging Areas

Durban Tug Jetty Extension M and L Shed Structural Repairs Upgrade Island View sea walls FEL3 Island View berth 1 Upgrade Replace Water Pipelines & Billing System Operation Phakisa Projects Note: not all projects in the corporate plan have been included.

• • • • • •

Ongoing Execution:

• Reconstruction of Sheet-Pile Quay Walls at • • • • • •

Maydon Wharf Permanent sand supply system Firefighting infrastructure at Berth 9 Island View Replacement of Potable Water Pipe at Island View Dry dock concrete repair (Operation Phakisa) Electrical Upgrade on Two Overhead Cranes at Shop 24 (Operation Phakisa) Upgrade of Remainder of Port HV Electrical Infrastructure Phase 2

What are some of the Port’s success stories? In terms of people, the Port boasts the first Black Female Engineer with a Government Certificate of Competency (GCC), one of only two engineers in the Port of Durban to have this highest academic qualification in engineering.

What future developments are on the cards? • DCT berth deepening 203 to 205 • Pier 1 Phase 2 Infill (Salisbury Island) • Roads Upgrade Projects

Our system successes include being the first South African Port to go live with the Integrated Port

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PROFILE • Durban has direct shipping connectivity to all of

Management System (IPMS) and Joint Operations Centre (JOC). Completing the Caisson repair project at the Prince Edward Graving Dry Dock was another tremendous achievement.

SA’s major trading partners

What have been some of the important milestones for the Port?

What are the logistical advantages of your Port for the international shipping industry?

Dry Dock

• First SA Port to go live with the Integrated Port •

Logistics Industry

• Durban has one of the best developed logistics industries

• Durban has the best rail and road networks

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Management System (IPMS) & Joint Operations Centre (JOC) Outer caisson refurbishment at Prince Edward Graving Dry Dock


PROFILE STORAGE

CAPACITY

QUANTITY

Containers

Theoretical Berth Capacity (Installed Capacity 3 400 000)

3 500 000

Dry Bulk

Theoretical Berth Capacity (Also Installed Capacity)

12 100 000

Bulk Liquid (Kilolitres)

Theoretical Berth Capacity

19 500 000

Vehicles

Theoretical Berth Capacity (Installed Capacity 520 000)

900 000

Break Bulk

Theoretical Berth Capacity (Also Installed Capacity)

4 000 000

Present capacity of Port of Durban, measured per commodity. SOURCE: NATIONAL DEPARTMENT OF TOURISM

CONTACT INFO Port of Durban Transnet National Ports Authority Tel: 031 361 8527 Website: www.transnet.net

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INTERVIEW

Port of Richards Bay Preston Khomo, Port Manager of the Port of Richards Bay, sees the potential for his deep-sea port to claim a large slice of the international logistics market.

Preston Khomo

BIOGRAPHY A qualified geologist, teacher and community leader, (born and bred in Port Shepstone, KwaZulu-Natal), Preston Khomo was previously Chief Executive Officer at the Phalaborwa Municipality, he holds a B.Sc Honours from the University of Fort Hare, and a MBA from De Montfort University, Leicester in United Kingdom, and M.S from Alabama, USA. Preston has undergone a number of marine-related and executive leadership courses, including the Executive Development Programme at the Gordon Institute of Business Science (GIBS). Served Transnet at different OD’s, Terminal Manager at (SAPO) TPT, TNPA Head of Infrastructure and Port Operations Portcon and Senior Manager at the Port of Durban. As from mid-2012 was appointed as Port Manager.

How did you reach the position of Port Manager? I spent some time teaching and working as a management consultant in South Africa and around the world as a qualified geologist. In 2002 I joined the port environment as Terminal Manager, Transnet Port Terminals, which was then known as South African Port Operations. In July 2004 I was appointed as Head of Infrastructure Development: Port Operations and Consulting, TNPA, Richards Bay. Thereafter, I moved to the Port of Durban as Real Estate Manager. Prior to taking up the position as Port Manager, TNPA, Port of Richards Bay, I was in charge of the TNPA Ship Repair Business Unit at the Port of Durban. What is the present capacity of your Port? The Port of Richards Bay currently imports and exports a capacity of over 80-million tons per annum in commodity volumes across our terminals. The Port of Richards Bay has set itself up as a Port of continuous growth within South Africa. The potential areas for growth and expansion lie in the South African ocean economy, focusing on development as well as technology, thereby ensuring that the port contributes towards the development of the country's economy. Hence, it is poised to become one of the largest freight logistics groups and freight hubs. What major investment drives is the Port promoting? Transnet is investing more than R15-billion on immediate and mediumto long-term capacity improvement initiatives in order to expand and upgrade the Port of Richards Bay to ensure that the bulk port accommodates the growth in export demand. The intention for the investment is to expand the country’s main bulk port up until 2020. The investment opportunities range from agro-processing, chemicals and allied industries, aluminium production, metals, energy, mineral processing and forestry to timber-related products.

KWAZULU-NATAL BUSINESS 2016/17

What are some of the Port’s major successes?

I am proud that the Port is enjoying the success of handling more than 60% of South Africa's seaborne cargo and is continuing to grow from strength to strength, in addition to introducing the National Ports

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convenient location brings it nearer to some of the major international trade routes linking the rapidly growing economies of China and India. Investors seeking efficiency and wishing to utilise South Africa will find that Richards Bay offers an all-in-one official gateway to well-off African markets. What features of the Port are most important for the overseas market?

Authority into separate landlord and operator businesses. A multi award-recipient port, I am also proud of its successful contribution in the development of the country's economy as it has taken two schools under its wing. Prompted by the development of the Port, it has been able to increase their staff complement at these schools by a desirable number, in the process creating huge employment opportunities for the local and surrounding communities. What is the Port of Richards Bay's competitive advantage?

The Port’s advantages are its connectivity in addition to top-notch infrastructure such as roads, rail, telecommunications, electricity, gas, water and accessibility to international air and sea ports, all of which reinforces the Port of Richards Bay’s prestige as a preferred investment hub in the mind of investors. Facing the trading currents of the Indian Ocean, its

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Positioned at one of the world’s few deep-sea ports, the Port has a comprehensive range of covered and open storage facilities. It has set a world record by loading 409 809 tons of coal and exporting it within a 24-hour period. Over the last decade Transnet has entrenched itself as a monolithic company with five distinct operating divisions, including port divisions Transnet National Ports Authority and Transnet Port Terminals. It recommenced an upgrade of the surrounding roads and completed its Truck Staging area for the convenient buffering of trucks in order to improve port efficiency. Other infrastructure upgrades include the implementation of energy saving initiatives and a 132Kv upgrade to the harbour’s west substation. Most recently, the Port of Richards Bay is benefitting from TNPA’s continued drive towards creating ‘smartpeoplesPORTS’ — aiming to foster progressive and sustainable ports that co-exist and evolve with their surrounding communities.

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PROFILE

The Port of Richards Bay A catalyst for growth – ‘From Fishing Village to Port City'.

Forty years ago ‘A Giant Arose’ and ‘Continues to Soar!’

Three possible sites for a new harbour had been considered including: Kosi Bay, Sodwana Bay and Richards Bay. Richards Bay was selected due to the large lagoon; ease of dredging; its direct link to the national rail network; the bay’s proximity to the town of Empangeni to stimulate initial development and the availability of ample fresh water.

The Port of Richards Bay began its trajectory when the first phase of the harbour was officially opened on 1 April 1976, primarily for the export of coal. Anchor terminal operators were the then South African Railways and Harbours and the Richards Bay Coal Terminal Company Limited (RBCT), which later became the largest single coal terminal exporter in the world. KWAZULU-NATAL BUSINESS 2016/17

The Port, which commemorated its 40th Anniversary on 1 April 2016, has developed Richards Bay from a small fishing village into an internationally recognised

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PROFILE

industrial hub and Port City, thanks to the efforts of key role-players over the past four decades.

eign exchange earner for the South African economy after gold.

Today the Port of Richards Bay is South African’s largest Port in terms of volumes, importing and exporting more than 60% of South Africa’s seaborne cargo, having achieved almost 100-million tons in 2015/16, with a turnover in excess of R1-billion. It is also the largest Port in South Africa in terms of size, covering an area of 3 773 hectares – a large portion of which is still undeveloped, providing great potential for future growth.

The Port currently hosts six licensed cargohandling terminals:

Initially established to export 26-million tons of coal over the first 10 years, the Port has diversified its operations to handle other cargoes and provides a worldclass service to ensure clients can compete locally, nationally and internationally, playing a key role in shaping South Africa’s future growth and prosperity. Coal, however, remains the single largest commodity in terms of volumes and is the second-largest for-

• Dry Bulk Terminal, operated by Transnet Port •

• •

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Terminals – handles a large variety of ores, minerals and woodchips Break Bulk Terminal, also operated by Transnet Port Terminals – handles a diversity of loose bulk and break bulk cargoes, as well as heavy lifts and abnormal loads Richards Bay Coal Terminal – with the capacity to export 91-million tons per annum Bulk liquid terminal, operated by Bidvest Tank Terminals – handles a wide range of bulk liquids Richards Bay Bunker Terminal, operated by Engen – imports bunker fuel from Durban and Cape Town. Bunkering is also carried out by a bunker barge operating in the Port KWAZULU-NATAL BUSINESS 2016/17


PROFILE

• Liquid Pitch Import Terminal, operated by Hillside

• Upgrade of roads • A fully operational Truck Staging Area to improve

Aluminium The Port also boasts a phosphoric acid export loading facility and a liquid pitch import facility.

Port efficiency and productivity – a first for South African ports A 132Kv upgrade to the harbour’s west substation – a first in the port system Initiatives to reduce consumption of water and electricity Implemented an Integrated Port Management System and Joint Operations Centre – enabling port users to track their cargo from port of origin to destination, amongst other functions Revival of the Port Festivals Corporate Social Investment projects

The combination of specialised cargo handling facilities, fast vessel turnaround, deep-water infrastructure, excellent rail links to the hinterland and the large greenfield development potential contributes positively to the Port’s logistical advantages. In addition, the Port has a 300m-wide entrance channel. The deep-water Port is also able to handle Cape Sized Vessels.

Milestones: 2006 to 2015

The Port is driven by the Port Development Framework which is updated annually. Over time the Port will develop into one of the largest global ports through expansion alongside the Mhlathuze River floodplain, towards the N2 highway, bringing with it economic growth and upliftment.

• •

Milestones achieved over the past decade include: • RBCT Phase V expansion project • Acquisition of a new helicopter (ZS-RRB) • Commissioning of coal berth – Berth 306 • Commissioning of liquid bulk berth – Berth 208 • Acquisition of a new tug “Lilani” • Opening of a rail line between Swaziland and the Port • Construction of breakwater floating pontoons – erosion control structures to protect the area from the full force of incoming waves – a first for South Africa • ISPS Compliance KWAZULU-NATAL BUSINESS 2016/17

Numerous capital investment programmes are in the pipeline to enhance the capacity of the Port, especially in the area of liquid bulk. Future plans under consideration include:

• Development of the South Dunes Precinct • Richards Bay Clean Cargo Rail Yard Port Expansion • Power Barges 38


• LNG Facility • Tidal Bridge Upgrades • Ship Repair Facility

Transnet’s Market Demand Strategy (MDS) will expand and modernise the country’s ports, pipelines and rail infrastructure to promote economic growth in South Africa. The MDS will enable the ports to transport goods in a reliable, efficient and cost effective manner.

Transnet National Ports Authority, Port of Richards Bay, is committed to protecting both the environment and the health and safety of its employees, contractors and other stakeholders. Echwebeni (Zulu word meaning “at the Port”), a 54ha mangrove swamp site, was declared a Site of Conservation Significance by Ezemvelo KZN Wildlife in 2005. Initiatives are in place to entrench a safe working environment.

PORT OF RICHARDS BAY

1976

2015/16

136

2 000

6.9

99

5 2 14 38.5 2 107

23 82 1 746.6 2 026

Total quay length in meters

1 500

6 389

Total length of conveyor belting for bulk cargo

8.3km (RBCT)

104km

Vessels entered the Port Million tons of cargo handled Cargo berths Leased sites Water surface area Ha of land

To the next 40 years!

CONTACT INFO Port Manager: Preston Khomo Harbour Master: Captain Sabelo Mdlalose Customer Relations Manager: Sinamile Zuma Physical address: Bayvue Centre, Ventura Road, Port of Richards Bay Postal address: PO Box 181, Richards Bay, 3900 Tel: +27 35 905 3440 | Fax: +27 35 905 3199 Email: Preston.Khomo@transnet.net Sabelo.Mdlalose@transnet.net Sinamile.Zuma@transnet.net Website: www.transnet.net

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KWAZULU-NATAL BUSINESS 2016/17


PROFILE

Financing KZN businesses to grow the economy Pat Moodley, Regional Manager of the Industrial Development Corporation's (IDC) KwaZulu-Natal region, shares his insight on the potential for small and large businesses in the province. The IDC is South Africa’s largest development finance institution. Since its inception in 1940, it has helped to build the industrial capacity that fuels the country’s economic growth by funding viable businesses. For more than 75 years, the IDC has been instrumental in implementing South Africa’s industrial policy, establishing some of the industries that have since become the cornerstone of the country’s manufacturing sector. Apart from large industrial projects, the IDC has also been instrumental in the establishment of other industries, such as fabricated metals, agro-industries, clothing and textiles, to name but a few.

BIOGRAPHY

Pat Moodley, Regional Manager of the IDC for the KwaZulu-Natal region, states that the corporation's mission has always been to be the primary driving force of commercially sustainable industrial development and innovation for the benefit of South Africa, in addition to the rest of the African continent. The IDC strives to contribute to the generation of balanced, sustainable economic growth and the economic empowerment of South Africans. The IDC has undergone numerous changes since its inception and Moodley affirms that, “although our priorities have evolved in line with policy direction over the years, we remain committed to developing the country’s industrial capacity and, in doing so, playing a major role in job creation.”

Pat Moodley is the Regional Manager of the Industrial Development Corporation (IDC) for the KwaZulu-Natal Region. He has been with the IDC for 10 years and is passionate about economic development in the KZN province. He previously worked for a commercial bank, specialising in the SME market prior to joining the IDC. Moodley holds a B Com degree in accounting and a National Diploma in Commerce. He is presently completing his MBA.

Rapid growth In recent years, KwaZulu-Natal (KZN) has experienced rapid economic growth and the province's KWAZULU-NATAL BUSINESS 2016/17

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PROFILE

Opus1 & Mooi River Textiles, a home textiles company in Tongaat, KwaZulu-Natal.

economy is now the second-largest provincial economy, with growing tourism, manufacturing and agro-processing sectors.

the province is experiencing a sluggish economic performance. The KwaZulu-Natal Treasury reported during the March 2016 Budget Vote, that the province’s economy is expected to grow by 0.6% in 2016, gradually improving to 1.3% in 2017.

“The provincial government of KZN has recognised that investment is critical for the growth of the province's economy. It therefore aims to create an environment that is conducive for investment. Both the provincial and local government have invested in infrastructure to promote a supportive environment for businesses and entrepreneurship to flourish.

The IDC aims to provide further funding in support of industrial capacity development as this is a key component for future growth of our economy. According to Moodley, the IDC’s mission in KwaZulu-Natal is to promote entrepreneurship through building competitive industries and enterprises based on sound business principles.

"The KZN economy is driven largely by manufacturing, which includes key economic sectors such as metals, chemicals, textiles, tourism and agro-processing,” says Moodley.

“The IDC has been stimulating KZN's economy by extending its reach and focusing on smaller municipalities in rural and outlying areas within the province. We work closely with key stakeholders to be at the centre of industrial development and job creation across the province,” says Moodley.

Despite the numerous activities taking place in KZN, like the rest of the South African economy,

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KWAZULU-NATAL BUSINESS 2016/17


PROFILE and youth-owned businesses to enable them to access funding from the IDC. In addition, the IDC provides business support to offer guidance on essential business skills to its clients. This support is available during the pre- and post-approval stages and includes assistance to distressed clients,” says Moodley.

Somta Tools, a cutting tool manufacturer in Pietermaritzburg.

Forward planning The IDC has identified numerous projects across the entire province as possible funding opportunities to be pursued within the coming months.

“We welcome all stakeholders to engage with the IDC in KwaZulu-Natal, at any of our offices in Durban, Pietermaritzburg or Richards Bay. We have a team of highly skilled and dedicated staff with vast experience, who are committed to fulfilling the IDC's mandate of driving industrial development and job creation and growing the local economy.”

“We will continue to partner with local and provincial government, organised business, chambers of commerce and other provincial development finance institutions to provide funding for businesses,” says Moodley. Consequently, he is confident that the IDC’s strategy of proactively identifying and funding high-impact projects in KZN, using the organisation’s diverse industry expertise, will bear fruit in creating viable industries.

CONTACT INFO KwaZulu-Natal: Durban Physical address: Suite 2101, 21st Floor, The Embassy Building, 199 Anton Lembede Street, Durban Postal address: PO Box 2411, Durban 4000 Tel: 031 337 4455 | Fax: 031 337 4790 KwaZulu-Natal: Pietermaritzburg Physical address: 1st Floor, ABSA Building, 15 Chatterton Road, Pietermaritzburg Postal address: PO Box 2411, Durban 4000 Tel: 033 328 2560 | Fax: 033 342 5341 Email: callcentre@idc.co.za Website: www.idc.co.za

Sector-specific workshops, presentations, training and coaching consultants who work closely with the IDC’s KZN office, further strengthens the corporation's partnerships. Another key focus for the IDC in KZN is to support women and the youth entrepreneurs in the province. “Our focus is definitely geared to getting more women and young people into the mainstream economic activities of the economy. We have various initiatives within the IDC to assist women-

KWAZULU-NATAL BUSINESS 2016/17

Working with the National Youth Development Agency (NYDA) and other stakeholders enables us to identify business opportunities to assist emerging young entrepreneurs to access funding from the IDC,” he adds.

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FOCUS

Making the right things happen Innovation, technological advancement and well-trained staff are keys to Nedbank’s success.

N

edbank continues to build on its client-centred strategy, which is aimed at delivering distinctive experiences and channels of choice. This has seen the bank simplify and enhance its product offering in line with its great-value banking philosophy, based on simplicity, transparency and affordability. Innovation and technological advancements as well as training and development of staff have been key pillars in achieving the bank’s objectives. Nedbank has also placed emphasis on client engagement to better understand the diverse and individual client needs across its personal and business banking base. "Innovation is an integral component of a holistic approach that encompasses our systems and processes and these enable us to deliver distinctive client experiences. Despite the tough economic environment, Retail and Business Banking have delivered value to our shareholders while significantly improving our client experience. Through these milestones, we are well geared to weather the persisting macroeconomic environment, and highly competitive business conditions," says Fayzel Omar: Regional General Manager of KZN at Nedbank. Dedicated Business Managers and Product Specialists working through an empowered "Client Service Team" ensure service delivery with significant benefits. In KwaZulu-Natal we have two regional head offices based in Durban (headed up by Regional Business Head Siphamandla Ndlovu) and Pietermaritzburg (headed up by Regional Business Head John Bush) with further offices situated in Richards Bay, Port Shepstone, Newcastle and Pongola. We service small and medium privately owned businesses and agricultural farming entities throughout the province. To this end, Nedbank has launched several first-in-the-marketplace innovations such as the award-winning Nedbank App Suite™, Home Loans Online Digital Channel and Market Edge, as well as the "Branch of the Future" concept in communities and nationally. "Working with communities is entrenched in our values through community development, skills development, education and job creation as well as environmental conservation. We believe our fast-growing presence in the province goes a long way in enabling greater financial inclusion while contributing towards economic growth," says Omar.

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Siphamandla Ndlovu, Regional Business Head Durban

John Bush, Regional Business Head Pietermaritzburg These are just a few of the ways that Nedbank continues to make the things that really matter with businesses and communities happen. www.nedbank.co.za

KWAZULU-NATAL BUSINESS 2016/17


FOCUS

Accessible onsite banking Nedbank is happy to help its clients learn to better manage their money.

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edbank@Work aims to make a difference in the communities in which we operate through financial wellness education for all employees in both the private sector and government. This is done through tailored financial fitness and consumer education training. Our continuous involvement in corporate social programmes in communities throughout KZN also supports growth and development.

How Nedbank@Work works for you, the employee It’s hard to focus on anything if you are having personal financial challenges like needing a personal loan, providing for school or university fees, or for unexpected costs like funerals. Unfortunately, dealing with a lot of these worrying financial issues takes time and energy, and more often than not they can only be sorted out during office hours, when you don’t have time.

Amrith Bishoon, Regional Relationship Manager

• •

That’s where Nedbank@Work comes in: Nedbank@Work makes convenient banking at your workplace possible. But, we offer more than just the convenience of having a relationship banker on site to open accounts and address queries; we also help you understand your financial position and work with you on a plan to reach financial fitness.

What are the benefits of Nedbank@Work? •

• •

You have access to a dedicated sales consultant, whose role is to establish convenience and ensure the best service delivery for all employees. Our financial fitness and consumer education training provides you with the services and expert advice you need to help you better manage your personal finances, make provision for unexpected circumstances, provide for your children’s education, etc. The Financial Fitness Trainer will also be able to assist you when it comes to improving your credit ratings and managing your budget. You also get great-value banking products as well as immediate

KWAZULU-NATAL BUSINESS 2016/17

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access to your salary if your company banks with Nedbank. Peace of mind as a result of financial well-being. We’re continuously there on site, making it that much easier to access and expand on and/ or enhance your existing suite of banking products. And because we bring the bank to your workplace, you don’t have to waste your lunchtime by going to the bank to wait in long queues.

Any company or government department interested in offering the Nedbank@Work value to their employees can contact the Regional Relationship Manager, Amrith Bishoon, on +27 31 364 1082 or email Amrithb@nedbank.co.za.


FOCUS

Banking on relationships with corporate clients End-to-end banking services are provided for Nedbank’s corporate and public sector clients.

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edbank Corporate and Investment Banking’s KZN operation is based at Kingsmead and provides end-to-end banking services, funding and transactional banking capabilities to all corporate clients and industries across the province. The team is committed to providing excellent client service – a commitment that is confirmed by the high ratings consistently provided in client surveys. The business is focused on JSE-listed companies, large unlisted companies, branches or subsidiaries of inbound multinational entities and public sector entities. Ebrahim Shaik, Divisional Executive: Client Coverage

What we do differently The business provides a differentiated client value proposition, based on established relationships and an in-depth understanding of clients’ businesses and the industries in which they operate. It provides a fullservice wholesale banking offering – including lending, deposit-taking, transactional banking, global trade services and asset finance – by way of dedicated corporate bankers who are the clients’ window into Nedbank. We also have a dedicated team of specialists focusing on public sector needs.

Specific solutions The business provides a variety of funding solutions amounting to between R50-million and several billion rand from short-term and working capital facilities, trade finance and letters of credit and guarantees, to vanilla and complex term debt structures by way of bilateral, club and syndicated transactions. The business assists with the issuance of corporate paper and other debt instruments. Leveraged buyouts (LBOs) and management buyouts (MBOs) are also funded, with NCIB acting as lead arranger, co-arranger or facility agent. Our transactional banking offering consists of the full-spectrum domestic clearing bank services, including current accounts, cash management and electronic banking, through our scalable internet-based NetBank Business system. The high-volume host-to-host platform,

45

Corporate Payments System, and a full range of cross-border and international transactions are part of the offering. The deposittaking and treasury franchise is strong, with a range of investment offerings. We pride ourselves in providing tailor-made solution across private equity, investment banking and capital markets.

Commitment to the community We try to make a difference in the larger KZN community through the Nedbank Foundation. Contact Ebrahim Shaik, Divisional Executive: Client Coverage Tel: +27 31  364 3348 or email: ebrahimsh@nedbank.co.za. KWAZULU-NATAL BUSINESS 2016/17


FOCUS

Making banking accessible to all At Nedbank we believe in delivering a choice of distinctive client-centred banking experiences that create deep enduring relationships with our clients. 

O

ur 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. As such the bank's strong relations with government, organised business and communities remain a key focus in growing its client base of over seven million. Our presence in the KZN community goes a long way in allowing for greater financial inclusion while contributing to social upliftment and economic development. Our growth in distribution will provide accessible banking to all South Africans. Our distribution presence in KZN sees us with 88 traditional branches, 30 kiosks in Boxer stores and six personal loan branches. Nedbank has embarked on a distribution strategy to convert all our branches to "Branch(es) of the Future". We currently have 23 "Branch of the Future" stores in KZN. To make banking convenient we have eight Sunday-trading branches in key centres in the province. We have also increased our ATM distribution to 630 and Intelligent Depositors to 90 in the province for your convenience. Nedbank’s client-centred approach has seen the bank intensify its efforts in delivering a distinctive client experience through innovation. The introduction of the award-winning Nedbank App Suite is evidence of the bank’s progress and its understanding of client needs. The App Suite serves as a virtual extension of our distribution network operating from the palm of your hands. “It makes it easy for clients to do their banking securely – from anywhere, anytime,” says Fayzel Omar: Regional General Manager of KZN Branch Networks at Nedbank. Our offering in Retail expands to Small Business and Professional Banking. We believe that small business is a critical segment of our economy and plays a key role in job creation. To support small business we have initiatives like "Small Business Friday", free small business seminars and simplybiz.co.za KWAZULU-NATAL BUSINESS 2016/17

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Fayzel Omar, Regional General Manager of KZN Branch Networks at Nedbank 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. For more information on our offerings in: Retail, please contact Jason Barron at Jasonba@nedbank. co.za +27 31 364 1000 Small Business and Professional Banking, please contact Melanie Reddy at Melanier@nedbank. co.za +27 31 364 1000.


FOCUS

Make the most of your money with our local and international expertise At Nedbank Financial Planning and Nedbank Private Wealth we care about your financial security and goals.

T

his means ensuring that you have a plan to cater for your circumstances as your needs evolve and change. We provide clients with holistic financial planning and a range of services to support this. As our client, you can build wealth by aligning your decisions with your deepest values and highest aspirations. We offer financial advice that is customised to each client’s needs. For some clients, this is about establishing a financial plan, and for others it may be about customised international estate planning structures and intergenerational wealth transfers. Based on your needs and circumstances, a Nedbank Financial Planner or a dedicated Wealth Manager can help you make the most of your money. To become a Nedbank Private Wealth client, you need to earn at least R1.5-million per year and/or have R5-million of investable assets. But if you don’t yet qualify, you can still benefit from our specialist expertise through Nedbank Financial Planning. We are here to help put a plan in place to grow your money to achieve your financial aspirations. Your Nedbank Financial Planner and Nedbank Private Wealth Manager have access to specialist teams who can help you: • Structure sound estate and succession plans to protect your own interests and the interest of your family • Grow your money by investing in a range of top local and offshore investments, including using our specialist stockbroking service • Protect your personal and business assets against life’s uncertainties through short- and long-term insurance solutions • Access your money whenever and wherever it suits you through a full range of local and international banking services available through a single point of contact; • Give your wealth a life beyond yours by leaving a legacy with our philanthropy services

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Surita Vithal, Head Nedbank Private Wealth KZN

Janet Esterhuizen, Regional Head of Financial Planning Nedbank KZN Contact Nedbank Financial Planning on 0861 238  887 or contact Nedbank Private Wealth on 0860 111 263. Visit www.nedbank.co.za.

KWAZULU-NATAL BUSINESS 2016/17


INTERVIEW

Acceleration Program has been e clients receive training and suppo eligible to receive financial suppo

MASISIZANE FUND

Masisizane Fund: BUILDING SUSTAINABLE BUSINESSES THROUGH empowering small SUCCESSFUL PARTNERSHIPS enterprise

The growth of the Masisizane Fu inception. Although the initial foc the fund has gradually grown to b fund with the vision of being able as a sustainable entity and thereb for many years to come. The fu R1b and it plans to invest R420 SMME’s by the end of 2017.

The development of agri-clusters Masisizane Fund’s approach in entail the clustering of small sca the farmers benefit from economi on value chain financing, agro-p partnerships. of the

Sifiso Myeni, the KwaZulu-Natal Provincial Manager Masisizane Fund, sees huge potential for the growthInof2013 the Fund initiated a p SMMEs, with collaboration of private and public sectors. Harry Gwala municipalities co

Sifiso Myeni

trading in grain and dairy prod focused on development of value mechanization, storage and micro Please could you give us an overview of the Masisizane partnerships with Omnia, Gra Association and municipalities, th Fund’s work in KwaZulu-Natal? their planting significantly in 2014 Masisizane has invested over R60-million and funded more than channeled towards Grain Co as

50 clients in the province. The Fund’s role is so much more than

The Masisizane Fund (NPC), is an initiative of Oldloans Mutual established Masisizane opera just giving – South a key Africa, component of our work is helping small in 2007 following the closure of the Unclaimed Shares Trust. This in consultation with it business owners to fiwas nd done solutions for ways in which they nationally can grow with the National Treasury of South Africa. The mandate of the Fund at inception was Gauteng and r their businesses. We also work with partners such as the in provincial and remains to contribute meaningfully to employment creation, poverty eradication offices in KwaZu and national government, in addition to their own development and reduction of inequality, economic growth and the attraction of investment. This is agencies. Through these relationships we have been ableLimpopo, to ensure Eastern done mainly through promotion of entrepreneurship, enterprise finance and support to that more resources are being made available to SMMEs. Western Although Cape. small, micro and medium enterprises (SMME’s).

BIOGRAPHY

Sifiso Myeni is the Masisizane we only have one office in the province, which is located in Durban, The process to follow when apply Fund’s KwaZulu-Natal Provin- we cover the entire KZN province and will assist whereverfrom wethecan. Masisizane Fund is: The target market is enterprises that are 51% or more owned The Fund provides loan finance in the following sectors: the following documents fo Manager. Previously hepriority Some interesting case studies that we are particularlySubmit proud of by thecial previously disadvantaged individual(s) giving • Agriculture relevant provincial office: to rural and peri-urban/township Masisizane funding • Manufacturing was the Head of areas. Agribusiness relate to businesses such as City of Choice Travel and Tours, which is • Comprehensive business plan is biased towards 51% plus owned women, youth and • Supply Chain Development and a member of a business that, like many others, started from humble beginnings. projections; people with disabilities. Masisizane will target productive • Franchising • For established the Old Mutual Masisizane early stages this business was operating from a garage yet businesses – and labour absorbing sectors as approved byFund the Board In of its • Commercial Enterprise years) and the latest man Directors from time to Management time. Executive Team. managing to create a turnover of close to R1-million per three annum. • For start-up businesses – financ Non-financial value adding services include capacity His career started in 2000 with Through the dedication of its entrepreneur – as well as the• fiTax nancial clearance certificate; The Fund’s success is driven through a focused approach on development, business management and technical support, Sugarcane andfinancial non-fieducation, nancial assistance fromand theproduct/ Masisizane Fund –• the busiOff take agreements and/or l high the impact SA industry sectors, coupled Research with a comprehensive market development SMME finance solution support. standards compliance. Signed consent Institute, andthatinincludes 2005business he joined nessservice has quality grown to theandpoint whereAitBusiness now has turnover •figures in for a credit ch the Organic Farms Group excess of R30-million. and in 2009 he joined the Old Another interesting case relates to the agri-cluster model that Mutual Masisizane Fund. Masisizane is implementing within the agriculture space. This approach He obtained his B.Sc Agri- has necessitated the collaboration of other stakeholders. It is through culture Degree from the Univer- the meaningful collaboration of the private and public sector that we sity of Zululand and his Master’s were able to finance five co-operatives within the Mzimkhulu area. These Degree in Sustainable Agricul- farmers were financed with inputs, tractors and working capital to enture from the University of the able them to plant, cultivate and sell soya beans. To date the project has Free State. He is a 2nd-year been working well, albeit the harsh climate conditions have stunted the PhD student with UKZN. anticipated results. Over R34-million has been invested in this project KWAZULU-NATAL BUSINESS 2016/17

48


INTERVIEW alone on a 50:50 basis (half comprised of a loan from the Masisizane Fund and the other half as a grant from the KZN Department of Agriculture and Rural Development). The project has created more than 150 job opportunities, including seasonal workers, and more jobs will be created as we expand from 1 500 hectares to 3 000 hectares in the next two years. Could you offer some insight into the focus of your agribusiness development unit?

provided through strategic partners such as the Old Mutual Foundation and others. What sort of trends are you seeing in terms of SMME businesses?

In general there has been a rise in the number of small businesses, but what is important is for those SMMEs to remain in business. We are seeing a far greater focus being given to small businesses in particular by government; one example is the establishment of the Department of Small Business Development. When SMMEs are supported in terms of resources, skills and markets it creates a real opportunity for them to assist in creating much-needed jobs in South Africa. The private sector and government naturally have a significant role to play in advancing SMME development. Be that as it may, it has been a tough economic climate for most SMMEs and emerging businesses. This is more so the case in the agriculture sector due to drought, rising inputs, etc.

The Masisizane agribusiness development unit consists of dedicated, experienced hands-on individuals who are tasked to ensure the successful running of the Masisizane Fund’s investment into the agri-clusters and turnkey solutions. The agriunit is responsible for six specific functions: • Establishment of Agri-Clusters. • Value chain-orientated development in agriclusters. • Partnerships and leveraging on partner programmes – grants, loans and technical expertise. • Sector intelligence, which includes providing technical expertise to pre- and post-investment What makes a successful SMME? Although there is no one-size-fits-all when it comes units, markets trends and so on. • Turnkey solutions. to success, there is a general success trait that most • Managing the agri-loan book. entrepreneurs show. These usually are people who The implementation of the flagship initiative started in are hands-on in their business and know how their earnest in 2015, when an amount of R100-million was business operates (or should operate), who have approved to be disbursed over a three-year period. a thorough understanding of the strengths and To date a total of R24.8-million has been disbursed. weaknesses within their business. This is very important as it should feed into the approach an What are the specific ways in which you entrepreneur will take in trying to grow their busiassist your clients? ness while still ensuring that it is sustainable. When The Masisizane Fund measures its impact in three entrepreneurs are financially disciplined they are ways – development impact, financial growth and more likely to succeed. the sustainability of businesses assisted. As such, the assistance we provide is through financial as well as non-financial support. The non-financial, CONTACT INFO value-adding services include: Physical address: 21st Floor, Old Mutual • Capacity development (business management Centre, 303 West Street, Durban and technical support). Tel: +27 31 302 5415 • Financial education. Web: www.masisizane.co.za • Market development. • Product and service quality standards and compliance. Financial support comprises loan financing (provided by the Masisizane Fund) and grants

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KWAZULU-NATAL BUSINESS 2016/17


SPECIAL FEATURE

Commonwealth Games Durban 2022 For the first time in its 85-year history, the Commonwealth Games will be held in Africa, and Durban's successful bid is set to further boost jobs and tourism.

D

o visitors look forward to visiting London or Middlesex? Sydney or New South Wales? Cities are among the most important marketing tools that regions and countries have. Good branding has become a huge issue for the world's great cities, and many of these urban giants are vital to the economic future of regions, and countries. Hosting events is one of the best ways of getting a city's brand into the consciousness of future tourists and potential investors. The City of Durban will have that opportunity in July 2022 – it will host the Commonwealth Games. In hosting upwards of 4 500 athletes from 71 countries and territories from throughout the Commonwealth, Durban will be hoping to imprint a positive message about the city in the hearts of tens of thousands of visitors, in addition to millions of television viewers. The secretary-general of the United Nations has appointed former New York mayor Michael Bloomberg as a special envoy to look at the future KWAZULU-NATAL BUSINESS 2016/17

of cities. His Future Cities forums look into a range of issues, including climate change. The planners behind the successful bid for Durban to host the Commonwealth Games clearly see in the future of this east coast city a role in transforming the economy of KwaZulu-Natal. They are also following international best practice. According to the Institute of International Trade, the areas that are most affected in a city that hosts big events are transport systems, telecommunications, sports facilities, housing provision and urban culture. An improvement in each of these sectors will materially improve the lives of Durban's citizens. The bid put forward by eThekwini (the municipality which runs Durban) has five big goals, all of which are aligned with the National Development Plan: • Improving infrastructure and accelerating the rate of development. • Re-engineering spatial patterns (changing where people live). • Uniting all South Africans around a common

50


SPECIAL FEATURE • •

programme to achieve prosperity and equity. Bringing about faster economic growth, and higher investment. Focusing on key capabilities of people and the state.

level of 95% for the duration of the Games. One research team calculated the tourism impact at £282-million. Durban's bid team are hoping that visitor spend (as it affects GDP) will amount to R6.1-billion when the Games come to South Africa. An estimated extra R20-billion would be delivered to the national economic output, translating into an additional R11-billion in GDP growth. There will be 1 000 full-time staff and about 10 000 volunteers, all of whom would gain valuable work experience and exposure. Reduced crime resulting from heightened security during the Games will have positive spin-offs for the local population and help to improve the region's 'investability.' One of the unique features of Durban's plan is the concept of a 'Compact Games.' Durban is already blessed with a sporting precinct on the coastal plain between the sea and the Berea which contains important sporting venues: Greyville horse-racing track; Moses Mabhida Stadium; Sahara Stadium Kingsmead (cricket); Royal Durban Golf Club; Growthpoint Kings Park rugby stadium and Durban Country Club. The Umgeni River marks the northern edge of this sporting zone, and it is also where the climax is reached of the famous FNB Dusi Canoe Marathon. The Durban Commonwealth Games will have 80% of its activities in a 2.5km radius and this will help to position the former World Cup soccer stadium venue, Moses Mabhida, as a mega multi-sport events precinct and Durban as a highly desirable venue for future global events. Some sports must be offered at every Games (the so-called 'core' sports), but hosts have a certain amount of leeway to offer other sports. Rugby Sevens is a 'core' sport and South Africa are often in the medals in that discipline; hockey is too, but Australia looms large in that sport, as they do in so many others. Cricket has only been offered once before, at the Kuala Lumpur Games in Malaysia in 1998. That was the first time ever that South Africa's cricketers got to wear gold medals – and the team they beat in the final was Australia! Perhaps the Durban committee can be persuaded to offer cricket again.

Two of the measurements that will be used to judge a successful games are tourist numbers and new inward investment. Interestingly, on the website of the Glasgow 2014 Commonwealth Games, the first item under 'Legacy' is 'International business profile.' Glasgow set out to use the international sporting event to 'showcase Scotland's good and services and to build strong relationships with international markets.' Like Scotland, Durban will be looking to improve its 'reputation as an excellent place to do business.'

Benefits Writing for GlobalBrief.org, Sarah Juggins says it is 'nigh on impossible to quantify the impact of major sporting events on a country's economy, and the economic rationale is often questionable.' She goes on, however, to give details of a very successful project carried out by the city of Manchester, host of the Games in 2002. The aim was that disadvantaged communities would benefit from the hosting, and they did, as 6 300 jobs were created; local construction and tourism companies had big increases in turnover; visitor numbers to the area grew by 300 000 annually in the years after the Games, and these visitors spent about £18-million. This is certainly the kind of broad base of new opportunity which the South African bid team will want to emulate. Juggins points to other successful legacies in former host cities: thousands of metres of fibre optic cable laid by Manchester; huge improvements to Melbourne's sports facilities; Delhi's better roads and airport, as well as its newly established business hubs. Tourism in South Africa was greatly boosted by the 2010 Soccer World Cup. The BBC reported after the Glasgow Games of 2014 that 690 000 people travelled to the city and hotels had an occupancy

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PROFILE

Durban Chamber of Commerce and Industry The Durban Chamber of Commerce and Industry aims to create a business environment conducive to investment and growth.

• Certificates of origin • Conference centre • Direct promotion via adverts in the Chamber Digest,

The Durban Chamber of Commerce and Industry contributes towards creating an investment-friendly economic and business environment in eThekwini and provides services relevant to the needs of the business community.

an electronic daily newsletter, free website classifieds, member-to-member discounts, print membership directory and online member directory In December 2014 the Durban Chamber gained status of being an Enterprise Development Beneficiary. Through this status the Chamber is able to raise and administer funds to advance enterprise development programmes, while at the same time contributions made to the Chamber qualify for BEE credits on the Transformation Scorecard.

Main objectives The Durban Chamber aims to achieve the following: • Provide an investor- and business-friendly environment • Facilitate economic and business growth • Provide relevant services to maintain and attract membership • Maintain and sustain its membership • Promote the development of small businesses • Engage in influential advocacy on behalf of business

Working with government The Chamber’s relationship with the local and provincial governments has proven to be positive and fruitful. The Chamber has made significant input into the development of the Provincial Growth and Development Strategy, while maintaining a constant and constructive relationship with the leaders of the eThekwini Municipality.

Services The Durban Chamber provides a broad range of services and opportunities for businesses, especially members of the chamber. These include: • Networking platforms/events such as breakfast and lunch networking functions • Business support, including mentoring, basic human resources advice, HIV and Aids advice and support, and assistance with access to finance and procurement opportunities • Lobbying and representation on behalf of Chamber members • Sourcing of trade leads and local or foreign suppliers or service providers • Local and international credit reference checks • CIPC • Procurement portal • ATA Carnet • Carnet de Commerce KWAZULU-NATAL BUSINESS 2016/17

In addition, having received contributions from member companies, the chamber has made submissions on many proposed policies that will affect business through legislation.

CONTACT INFO Physical address: Chamber Square, Lion Match Office Park, 892 Umgeni Road, Durban, 4001 Postal address: PO Box 1506, Durban 4000 Tel: +27 31 335 1000 | Fax: +27 31 332 1288 Email: chamber@durbanchamber.co.za Website: www.durbanchamber.co.za

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CALL FOR ENTRIES The Durban Chamber of Commerce and Industry is calling for nominations for the KZN Exporter of the Year Awards 2016 based on total turnover and within the following categories: • Category A - exporting for less than 3 years. • Categories B-D - exporting for more than 3 years. • Category E - exports into the African markets. • Category F - for service providers. All KZN based Exporters are eligible to participate in these Awards, irrespective of whether or not they are Durban Chamber of Commerce and Industry members. The closing date for ENTRIES is: 16h00, 31 August 2016 Please forward entries for: KZN EXPORTER OF THE YEAR AWARDS 2016 Attention: Ms Rokeya Valli Durban Chamber of Commerce and Industry, P O Box 1506, Durban, 4000 Physical Address: Lion Match Office Park, Chamber Square, 892 Umngeni Road Durban Tel: 031-335 1000 | Fax: 086 742 2381 Email: vallir@durbanchamber.co.za

THE RULES Entries and the intellectual property of the entrants will be treated in the strictest confidence. Entries will be judged in two stages by an independent and impartial panel of judges. The initial stage will be based on a written submission from which the finalists will be chosen. The award winners will be announced at the KZN Exporter of the Year Awards 2016 Gala Dinner to be held on the 20th October 2016 at the Durban International Convention Centre. Winners may be requested to participate in post event publicity. Entries are open to all exporters within KwaZulu-Natal and NOT restricted to Durban Chamber members only. Applicants must be authorised to enter their organisation into the awards programme. Entries should preferably be in typed format. All entries will be acknowledged on receipt. Information included in entries will become the property of the Durban Chamber of Commerce and Industry. Entries will not be returned. The organisers reserve the right to withdraw an award from any applicant supplying false information within their entry. The Award is held on an annual basis and the ‘floating’ trophies are returnable to the Durban Chamber of Commerce and Industry at a stipulated date prior to the next event. The closing date for entries is 31st Augusy 2016 by which date entries must have been received at the offices of the Durban Chamber of Commerce and Industry. The judges’ decision is final and no correspondence will be entered into. The declaration by the financial manager must accompany each entry form. By registering and completing an entry for the awards you agree to these terms and conditions.


SPECIAL FEATURE

A period of positive growth and development The year 2015 marked 60 years since South Africans from all walks of life adopted the Freedom Charter in 1955, in Kliptown, Soweto, as well as the 25-year anniversary of the release of Nelson Mandela from prison and the unbanning of the liberation movements. “They declared amongst other things, that South Africa belongs to all who live in it, black and white, and that no government can justly claim authority unless it is based on the will of all the people,� said President Jacob Zuma.

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SPECIAL FEATURE

I

4. More effective implementation of a higher impact

n a year that saw world economic and political uncertainty, South Africans still had much cause to celebrate. Great strides have been made nationwide in building schools and hospitals, major efforts are underway in terms of job creation, skills development, SMME growth, the empowerment of women as well as innovation. After a tough period of loadshedding and energy instability, Eskom seems to have the national grid stabilised as well as solid plans for the expansion of our infrastructure.

Industrial Policy Action Plan.

5. Encouraging private sector investment. 6. Moderating workplace conflict. 7. Unlocking the potential of small, medium and micro enterprises (SMMEs), co-operatives, township and rural enterprises. 8. State reform and boosting the role of state-owned companies, information and communications technology (ICT) infrastructure or broadband roll-out, water, sanitation and transport infrastructure. 9. Operation Phakisa, which is aimed at growing the ocean economy and other sectors. "A lot has been achieved in the past year. We believe that our nine-point economic intervention plan on the economy will consolidate the achievements, and ignite much-needed growth," said Zuma. South Africa has the 24th largest economy in the world and contributes 30% of Sub-Saharan GDP despite having only 6.5% of the population. Sound financial management has seen South Africa’s macro-economic fundamentals become very strong off the shaky base that the apartheid regime created. In particular, prudent controls meant that South Africa was able to withstand the shockwaves sent around the world by the international financial-sector meltdown. The country is renowned for an abundance of mineral resources, accounting for a significant proportion of both world production and reserves, and South African mining companies dominate many sectors in the global industry. South Africa produces 10% of the world’s gold (it is estimated that about one-third of the world’s unmined gold still remains in South Africa) and there has been an increase in the beneficiated minerals industry, which the government has targeted as a growth sector.

South Africa also hit the world headlines through the discovery of a new species of human relative ("Homo naledi") at the Cradle of Humankind World Heritage Site, a local doctor successfully completed the world’s first penis transplant, and Trevor Noah captured a slice of America’s cultural empire by taking over as host of Comedy Central’s The Daily Show.

National priorities In his State of the Nation Address in early 2015, President Jacob Zuma said that it had been the year of rededicating ourselves to eradicate racism and all related intolerances in our country. Zuma added that the country’s ambition of achieving a growth target of 5% by 2019 is at risk because of slow global growth as well as domestic constraints in energy, skills, transport and logistics amongst other factors. However, the situation was more promising on the jobs front as Statistics South Africa’s report on the last quarter of 2014 showed that there are now 15.3-million people who are employed in South Africa. "Jobs grew by 203 000," said Zuma, adding that the economy still needed a major push forward. Zuma also presented government’s nine-point plan to ignite growth and create jobs.

Economy

National Government’s nine-point growth plan

1. Resolving the energy challenge. 2. Revitalising agriculture and the agro-processing

The discovery of diamonds and gold in the 19th century laid the platform for the development of South Africa as an industrialised economy. Wool, wine and mohair were the country’s only exports before minerals were discovered.

value chain.

3. Advancing beneficiation or adding value to our mineral wealth.

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SPECIAL FEATURE Although mining plays a far smaller role in the economy than it used to, it still contributes significantly to GDP, employment and taxation income. Demand for platinum, iron ore and manganese from the new global powerhouses of China and India is motivating investment in the sector in South Africa. Mining companies account for about a third of the market capitalisation (R1.86-trillion) of the country’s stock exchange, the JSE. One of South Africa’s fastestgrowing manufacturing sectors, Dube TradePort's head office, 29 0 South. catalytic converters, also owes its existence to the minerals that make up the converters, and one of the central age in the country. We are quite aware of the fact planks of the South African government’s eco- that this is indeed a difficult period, but it shall pass nomic policy is to ensure that value is added to the because we do have strategies in place to deal with country’s mineral resources. The country already this matter," Zuma said. has many steel mills and aluminium smelters, Government has developed a sustainable plan but many thousands of tons of raw materials are that involves short-, medium- and long-term capacity exported in their raw state. A number of Industrial and infrastructure development, beginning with a Development Zones and Special Economic Zones plan for improved maintenance of existing Eskom have been set up and promulgated in order to at- power stations, enhancing the electricity generation tract investment as well as to increase local manu- capacity and managing the electricity demand. The facturing capacity. long-term plan involves finalising South Africa’s longThe automotive industry is one of South Africa’s term energy security master plan. most important sectors and accounts for about 12% "As a priority we are going to stabilise Eskom’s of South Africa’s manufacturing exports, with many of finances to enable the utility to manage the curthe major multinationals using South Africa to source rent period," said Zuma, adding that government components and assemble vehicles for both local and was supporting Eskom with R23-billion for the 2016 fiscal year. international markets.

Energy

Agriculture

The country has been through a challenging period during which there have been serious energy constraints. These have proved to be an impediment to economic growth and a major inconvenience to everyone in the country. Overcoming the challenge was uppermost in government’s programme. "Government is doing everything within its power to deal with the problem of energy short-

Agriculture is a catalyst for growth and food security and there is a strong public-private sector drive to develop an Agricultural Policy Action Plan aimed at bringing one-million hectares of under-utilised land into full production over the next three years. "Among key interventions this year, we will promote the establishment of agri-parks or cooperatives and clusters in each of the 27 poorest district

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SPECIAL FEATURE municipalities to transform rural economies," said Zuma. An initial funding of R2-billion was made available for the agri-park initiative, while the country’s agro-processing exports are attracting positive interest in new markets through Africa and China for the export of South African maize and apples to China. Apple exports alone are projected to yield R500million in foreign exchange over the next three years.

'Local government is everybody’s business. We have to make it work. We have launched the "Back to Basics" programme to promote good governance and effective administration through cutting wastage, spending public funds prudently, hiring competent staff, and to ensure transparency and accountability in municipalities,' said Zuma.

History Infrastructure One of South Africa’s premier museums and tourist attractions is The Cradle of Humankind, an ancient destination that celebrates the fact that present-day South Africa has been home to the human species for thousands of years. Early on 2015 a team of archeologists, led by Professor Lee Berger of the University of the Witwatersrand, made a discovery that would pose new and vital questions about the origins of the human species and shake up our understanding of the progress of human evolution. Two years after they were tipped off by cavers plumbing the depths of the limestone tunnels in the Rising Star Cave outside Johannesburg, Berger and his team discovered what they say is a new addition to our family tree. The team is calling this new species of human relative "Homo naledi," and they believe that part of their tribal culture was the practice of burying their dead – a behaviour scientists previously thought was limited to humans. The team believes that the chamber, located 30 metres underground in the Cradle of Humanity World Heritage Site, was a burial ground - and that Homo naledi could have used fire for light. The discovery was poignant considering South Africa’s energy crisis, but it was also cause for celebration of South Africa’s position in the story of mankind, starting from the birthplace of man to the evolution of one of the greatest stories of democracy ever told. What lies ahead is an exciting period of growth as the country strives to realise its potential to be the gateway to Africa and, in so doing, helping to unlock the enormous economic and social potential within the continent. Sources: SouthAfricaInfo, BrandSA, Media Club South Africa, State of the Nation Address.

The National Infrastructure Development programme continues to be a key job driver and catalyst for economic growth. Major projects include the Umzimvubu Water Project in the Eastern Cape, Jozini Dam in Umkhanyakude in KwaZulu-Natal and projects in Bushbuckridge in Mpumalanga and phase one of the Mokolo Crocodile Water Augmentation in Limpopo. Progress to improve the water supply to areas affected by shortages are underway, but the war against water losses (which costs the country R7-billion a year) is being waged through the Department of Water and Sanitation’s plan to train 15 000 artisans and plumbers who will fix leaking taps in their local communities.

Internal affairs Cabinet has adopted vigorous and integrated interventions to combat the vicious rhino poaching in the country, including continuous joint operations with key neighbouring countries, improved intelligence gathering as well as enhancing protection in parks and provincial reserves where rhino are present. Government has also made substantial progress in establishing a border management agency to manage all ports of entry and improve security. To further improve access to identity documents, citizens will now be able to apply for the new Smart ID Card at their local bank due to a partnership between the Department of Home Affairs and some banks in the country. In December 2014, Cabinet released the draft National Disability Rights Policy for public comment.

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Growing agri-business in KZN Agri-parks and trade agreements form the backbone of the province’s agricultural future, and will be instrumental in facilitating joint ventures between communities and investors.

A

s South Africa continues to seek market access for agricultural products, an agreement with the US secured its position as an African Growth and Opportunity Act (AGOA) beneficiary. Through the AGOA agreement exports of agricultural goods are facilitated, although cheaper US chicken imports continue to threaten the local poultry industry. The KwaZulu-Natal Executive Council has identified key commodities such as red meat, chicken meat, dairy and dairy products, vegetables, dry beans and soya beans as focus commodities that have the potential to become self-sufficient industries and eventually enter the export market. In his 2015 budget address, Agriculture and Rural Development MEC Cyril Xaba stated that agriculture should be viewed as a business that extends across the entire food and agricultural chain, from farmers all the way through to consumers. The development of Agri-parks was proposed in a bid to attract new business opportunities and investors. An Agri-park is a networked innovation system of agro-production, processing, logistics, marketing, training and extension services, all of which is located within a District Municipality. A total of 10 Agri-parks are planned for KwaZuluNatal at a cost of R45-million per park, and each will centre on the dominant commodity of the surrounding area. Agri-parks represent a 10-year programme and are envisaged to be fully functional by the year 2025.

in so doing, ensure participation in the agricultural economy by the Agri-parks. At present there are 321 national rural development projects, 157 of which are concentrated in KwaZulu-Natal, and these cover 7 235.5 hectares and total 5 446 small-hold farmers. At the ground level, these production sites will be controlled by various forms of enterprise that are owned by local producers, smallholder farmers and manufacturers, all of whom will hold shares in the Agri-parks. One such enterprise (and the first basic component of Agri-parks) is the South African Farmer Development Association (FPSU). As its name suggests, it aims to see growers develop from smallscale to larger operations and, in so doing, to find their place in the first economy. The FPSU is a rural small-holding farmer outreach and capacitybuilding unit that links with farmers and markets. The FPSU does primary collection and some storage, in addition to some processing for the local market, along with extension services such as mechanisation. In March 2016, the Department of Rural Development and Land Reform (DRDLR) handed over R74.5-million towards addressing the needs of distressed small-scale growers. The agricultural economy can expect contraction as a result of the droughts this past year, and in KZN 153 000 farmers were affected by the drought, with 35 731 reported livestock losses. To date 4 750 farmers have been provided with assistance. Measures for farmer relief and recovery in the province started on 11 January 2016 and included feed and medicines to the value of R36million, with R2.1-million in livestock water provided for the drilling and installation of boreholes, in so doing equipping 75 dams and drilling 62 boreholes. Importantly, the DRDLR has taken essential steps

Farmer production as the primary unit A strong Agri-park base of primary production is necessary for the success of this initiative, and this will enable the parks to feed into the value chain and, KWAZULU-NATAL BUSINESS 2016/17

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SPECIAL FEATURE

The Agro-Processing Unit The second component of the Agri-parks is referred to as the Agro-processing Unit, where primary products are processed to add value and bring more revenue into the area. These ‘agrihubs’ (as they are also referred to) are defined as production, equipment hire, processing, packaging, logistics, innovation and training units. The agrihubs have received funding approved by the DRDLR to counter drought damage across all districts, and this includes R80 000 towards auction sale facilities, R8.3-million for feedlots and handling facilities, and R1.1-million towards irrigation schemes. Efficient irrigation practices, technical assistance to farmers and increased investment in research and development are all proposed measures for enhancing the resilience of the agricultural sector against future losses.

Rural Urban Market Centre (RUMC)

Developing Agri-park management structures Governance structures for Agri-parks have already been established, and on 11 December 2015 the District Agri-parks Management Councils (DAMC) and the National Agri-parks Management Councils (NAMC) were launched. In their March 2016 meeting MEC Xaba met with the newly appointed governing bodies for a workshop to address progress. The MEC reminded the DAMCs that Agri-parks had been introduced to kickstart rural economy development and that, should they fail, then they would be failing the poor and the people of the province as a whole.

Production programmes Production plans are currently being implemented, with some plans having to be realigned to address prevailing drought conditions. Agripark construction (Farmer Production Support Units and agri hubs) has commenced in seven of 27 priority districts, although this does not yet include KwaZulu-Natal. The districts are busy completing their own business plans in order to show linkages between farmers, the FPSU, agrihubs and the RUMC. AGRIPARK Commercail Farmer (CF) CF can use the Agripark process established as depicted. However due to their existing experience and product volumes they may choose to enter the AP process at the AH, RUMC or even go directly to the Market.

Small Holder Farmer (SHF) Small Product Support Unit (SPFU) Agri-Hub (AH) Rural Urban Market Centre (RUMC) MARKET

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Produce

Developments in the province around agri-business are effectively incorporating measures to buffer against future economic losses sustained by drought and are geared towards achieving the agreed 0.5% additional contribution to economic growth. At the

far end of the agro-processing value chain this would include the speed that products go through port, decreased export tariffs through trade agreements, advancing capital investment, and increasing market development. This falls under the responsibility of the third component arm of Agri-parks, namely the RUMC. The RUMC has three main purposes: • Linking and contracting rural, urban and international markets through contracts. • To act as a holding facility, releasing produce to urban markets based on seasonal trends. • Providing market intelligence and information feedback to the agrihubs and the FPSU, using the latest information and communication technologies.

Information

to mitigate drought damage in sites identified for Agri-park areas. These identified sites or affected areas are tabled for each district.

Co-operatives SHF's will be encouraged to use the Agri-park process established as depicted. It is within this process that SHF will be supported over the next 10 years. SHF will be able to move produce from the FPSU to the RUMC without going through the AH, if no further value-added of packaging is required. The efficiency of the Agri-park process will determine its use by farmers.

KWAZULU-NATAL BUSINESS 2016/17


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

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Forestry and paper

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Sugar

72

Oil and gas

74

Mining

78

Manufacturing

80

Automotive

84

Water

86

Renewable energy

88

Banking and financial services

90

Development finance and SMME support

102

Education and training

104

Tourism

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OVERVIEW

Agriculture The diversity of KwaZulu-Natal's agricultural sector is providing new sources of income.

SECTOR HIGHLIGHTS • RCL Foods Ltd has become a major player in the food sector • A new marula processing plant promises increased incomes for farmers • An ethanol from sugar project could create jobs near Jozin

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hat used to be Rainbow Chickens is now the rapidly expanding 'RCL Foods Ltd', but the base of the new company is still in Westville, about 12km west of Durban. Having purchased Vector Logistics in 2004, RCL made two large investments in 2013, a majority share of Foodcorp and a 49% stake in Zam Chick of Zambia. The Remgro Group is a 75.9% shareholder in RCL Foods, which for the six months ended 31 December 2015 had revenue of R12.9-billion, which was 7% down on the previous year. The diversification that came with the purchase of Foodcorp means that a large number of brands are now housed in the company – Nola, Yum Yum, Sunbake bread, Farmer Brown, Ouma rusks, A1 Maize Meal, for example – and this spread helped to counter events such as the national drought and the importation of 65 000 tons of poultry from the United States of America. The special trade deal between the USA and South Africa (AGOA) was a cause of tension recently, and poultry by-products were one of the key issues. The trade agreement has since been renewed. KwaZulu-Natal is also home to Clover, one of South Africa's most important agri-processing firms in the dairy sector. In Pinetown Clover has a long-life UHT milk processing and packaging facility; KWAZULU-NATAL BUSINESS 2016/17

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a Queensburgh factory makes fresh pasteurised milk, juice, dairy mix and fermented products; Escourt manufactures milk powder. Revenue for the six months to 31 December 2015 was up nearly 8% to R5-billion but the lack of feed caused by the drought will affect all milk producers in South Africa. Clover buys nearly 30% of all milk produced by South Africa's farmers. KwaZulu-Natal has a large number of food and beverage producers, but there are countless opportunities that still remain in the agri-processing sector. Agri-processing will no longer be the preserve of big companies, thanks to a provincial government initiative in Ngwanase in the uMkhanyakude District Municipality. R30-million has been invested in a marula processing plant, designed to


OVERVIEW produce jams and oils. Most of the funding came from the KZN Department of Agriculture and Rural Development (KDARD) with the national Department of Rural Development and Land Reform contributing a R5-million de-stoner machine. Forty-nine areas will supply primary stock to the plant. Vegetables also grow well in most areas, and some maize is grown in the north-west. Nuts such as pecan and macadamia thrive. The province’s forests occur mostly in the southern and northern edges of the province. TWK is a R6-billion operation that originated in forestry (as Transvaal Wattlegrowers Co-operative) but which is now a diverse agricultural company with seven operating divisions. It has 19 trade outlets in the province and 21 in Swaziland and Mpumalanga. The coastal areas lend themselves to sugar production and fruit growing, with subtropical fruits doing particularly well in the north. KwaZulu-Natal produces 7% of South Africa’s citrus fruit. The Coastal Farmers Co-operative represents 1 400 farmers. 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. 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. The Orange Grove Dairy Farm near Dundee has one of the biggest pedigree Jersey herds in the country.

KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle, which represents 55% of the provincial beef herd, and their goat herds account for 74% of the province’s stock. The Midlands is also home to some of the country’s finest racehorse stud farms. The area around Camperdown is one of the country’s most important areas for pig farming.

Upliftment and investment A KwaZulu-Natal Department of Agriculture and Rural Development initiative to help small farmers become commercial farmers has 3 483 participants and 122 communal estates have been registered as legal entities. Another upliftment project will see R14-million spent on assisting five small-grower collectives to become effective sugar-cane farmers at Qoloqolo (uMzumbe Local Municipality). Massmart, the retail group that has been bought by US giant Walmart, will invest R15-million to 2017 in creating opportunities in its food chain for emerging farmers. TechnoServe, a non-governmental organisation, will oversee the programme. A South African/Brazilian company called Silvapen is set to develop an ethanol-from-sugar plant near Jozini on the Makhatini Flats. The premier of the province announced that the project's value is R1.2billion and it could create 1 000 jobs. Enterprise iLembe, the development arm of the iLembe District Municipality, is looking for investors to further develop an agri-processing hub that is taking shape near the King Shaka International Airport and Dube TradePort. KwaZulu-Natal has two colleges offering higher qualifications in agriculture, Cedara in the Midlands and the Owen Sitole College of Agriculture near Empangeni.

ONLINE RESOURCES Citrus Growers’ Association: www.cga.co.za Coastal Farmers Co-operative: www.coastals.co.za Dry Beans Producers’ Organisation: www.beans.co.za Fresh Produce Exporters Forum: www.fpef.co.za KwaZulu-Natal Agricultural Union: www.kwanalu.co.za KwaZulu-Natal Department of Agriculture and Rural Development: www.kzndard.gov.za Milk Producers Organisation: www.mpo.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za Royal Agricultural Society of Natal: www.royalshow.co.za TWK: www.twkagri.com

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OVERVIEW

Forestry and paper KwaZulu-Natal makes huge amounts of dissolving wood pulp and paper.

SECTOR HIGHLIGHTS • Sappi has transferred production of Typek paper to its Stanger mill. • Durban hosted the World Forestry Conference in 2015. • Mpact recently invested an additional R 200million in production facilities. • South Africa is set to have many more small-growers in the near future.

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or the first time an African country hosted the World Forestry Conference, when thousands of delegates descended on Durban in September 2015. Topics such as climate change, food security, plantations, water supply and conservation (and how these issues relate to forests) were given a full airing at the conference. In her address to the conference, South Africa's Minister of Water and Sanitation, Nomvula Mokonyane, stressed the threat posed by invasive alien plant species to the country’s biological diversity, water security and the productive use of land. She pointed out that alien plants consume 30% of the country's water. Deputy State President Cyril Ramaphosa told delegates that South Africa's forestry sector will, look different in a few years time. Although there are already 24 000 'small growers', this number is set to rise significantly as land restitution claims are settled: Ramaphosa said that '50 to 60% of our plantation land' is under land claims, and he pointed out that these new farmers will need support. This will present an opportunity for entrepreneurs or companies in the agricultural services sector. KWAZULU-NATAL BUSINESS 2016/17

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KwaZulu-Natal is a national leader in the forestry and paper sector. The forest-product export sector in South Africa is made up of paper (45.2%), solid wood (23.3%) and pulp (28.9%). Mpact, the paper manufacturing and plastics packager that was spun out of Mondi, invested a further R200-million in its waste paper and recycling operation at Empangeni. The company collects more than 450 000 tons every year. Mondi and Sappi are both large international companies and both have long-standing ties with KwaZulu-Natal. Sappi Southern Africa currently contributes a quarter of the group’s sales. The pulp and paper sector makes a direct contribution to South Africa’s balance of payments of R4.5-billion, largely due


OVERVIEW to Sappi’s dissolving wood pulp operations. In 2015 Sappi moved the production of its Typek paper from a mill in Gauteng (which it has sold) to its Stanger facility, where office and tissue paper are the key products.

Timber Timber plantations are found in five parts of the province: northern KwaZulu-Natal, Midlands, southern KwaZulu-Natal, Zululand and Maputaland. Close to half a million hectares – 38.5% of the land in the province – is allocated to timber plantations. Of this area, 70% is devoted to hardwoods and the balance to pine, the only softwood grown in large quantities in South Africa. The percentage of privately owned forest land is 93.4%. Merensky has plantations in the Dargle forest, while Sappi and Mondi have holdings across the province. Mondi has 220 000 plantation hectares on 330 000 hectares of land, while Sappi manages and owns about 230 000 hectares. The South African forestry industry is valued at R40-billion per year. The National Department of Agriculture, Forestry and Fisheries reports that South Africa has a shortage of sawn timber and that this problem is set to get worse. Labour writer and researcher Terry Bell reports that 82% of the forestry workforce on the 17 largest operations (36 025 employees) are employed on contract through labour brokers (Business

Times). With a further 5% on fixed-term contracts, Bell believes this has the potential to increase tension between employer and employee.

Processing KwaZulu-Natal is a major centre for the beneficiation of timber products, with more than half the country’s timber coming from the province. The Sappi mill at KwaDukuza produces 110 000 tons of paper and 60 000 tons of pulp annually, and is the only producer of coated graphic paper in the country. Its Tugela Mill, at Mandeni, is the only one in the country to manufacture high-performance containerboard packaging. 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. Dissolving wood pulp is sold as a raw material to converters around the world who produce from it a range of products such as textiles, cellophane wrap and pharmaceuticals. The country’s largest hardboard plant is at Estcourt and South Africa’s only woodchip export plants are located at Richards Bay. Mondi’s Richards Bay facilities produce pulp, linerboard and wood chips and its paper mill at Merebank, south of Durban, has a capacity of 600 tons per day. It produces 400 000 tons of uncoated, wood-free paper per year. Nampak produces crêpe paper at Verulam and Rafalo produces tissue paper. SA Paper Mills is another paper producer. The Merensky Group operates one softwood sawmill in addition to 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. 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.

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

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FOCUS

We are Mondi: In touch every day At Mondi, our products protect and preserve the things that matter.

M

ondi is an international packaging and paper Group, employing around 25 000 people across more than 30 countries. Our key operations are located in central Europe, Russia, North America and South Africa. We offer over 100 packaging and paper products, customised into more than 100 000 different solutions for customers, end consumers and industrial end uses – touching the lives of millions of people every day. In 2015, Mondi had revenues of €6.8-billion and a return on capital employed of 20.5%.

Richards Bay mill.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. For us, acting sustainably makes good business sense and is part of the way we work every day. We have been included in the FTSE4Good Index Series since 2008 and the JSE’s Socially Responsible Investment (SRI) Index since 2007.

The Mondi Group is fully integrated across the packaging and paper value chain – from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions. Our innovative technologies and products can be found in a variety of applications including hygiene components, stand-up pouches, super-strong cement bags, clever retail boxes and office paper. Our key customers are in industries such as automotive; building and construction; chemicals; food and beverage; home and personal care; medical and pharmaceutical; packaging and paper converting; pet care; and office and professional printing.

Mondi's South Africa Division

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In South Africa our business manages upstream forestry operations and manufactures and sells a range of pulp, virgin containerboard, uncoated fine paper (UFP) and newsprint products. We own and manage one of the largest Forestry Stewardship FSC®-certified plantation units in the world. The internationally recognised FSC® accreditation recognises that our plantations are managed in a responsible and sustainable manner. We have 1 600 employees working across three divisions: Forestry operations, a pulp and linerboard mill, and an uncoated fine paper and newsprint mill.

CONTACT INFO Key personel: CEO Mondi South Africa, Ron Traill Physical address: Travancore Drive, Merebank 4052 Postal address: PO Box 31024, Merebank 4059 Tel: +27 31 451 2111 | Website: www.mondigroup.com


INTERVIEW

Mondi Group South Africa Ron Traill, Chief Executive Officer of Mondi SA, talks about how the group achieved its recent strong results while ensuring sustainable development of their forests and local communities.

Ron Traill, CEO of Mondi South Africa

What makes KwaZulu-Natal such a good business location for Mondi South Africa?

Durban is a large business hub with good road and rail infrastructure for our domestically focused business. The location and proximity of the largest port in Africa offers strategic advantages for our export products while the province’s northern and central areas offer a very good climate and environment which is well-suited to a commercial forestry business. Our Richards Bay mill is also very well situated to export products from the Richards Bay port.

BIOGRAPHY Ron joined Mondi in 2003 as managing director of the Štetí ˇ pulp and paper mill in the Czech Republic, also assuming responsibility for the Mondi packaging paper business in Ružomberok, Slovakia. He then relocated to SA, being appointed CEO of the South Africa Division in January 2008. Ron has over 34 years’ experience in the paper industry. He began his career as an industrial engineer with DRG Packaging Group, working in its Scottish paper mill. He went on to hold a succession of posts within the company, leading ultimately to his appointment as general manager. Following DRG’s acquisition by Sappi in 1990, he worked for 10 years in a number of general management roles.

Mondi South Africa had exceptionally good financial results. How important to your financial performance was the successful repositioning of your business?

There are three strategic value drivers for our business in Mondi South Africa. Firstly, maintaining a high-quality, low-cost asset base, keeping a strong focus on performance and the development of our people. We have a philosophy of continuous improvement and a constant focus on operational excellence. The fundamental principle behind operational excellence at Mondi is the desire to do more with less. We continue to invest in and manage our business to ensure that our manufacturing operations maintain their high-quality and low-cost advantages and are well-positioned for growth opportunities. In 2016, we will be focusing on the completion of our strategic investments in the woodyard and brown kraftliner production at our Richards Bay mill. The ability to produce both white top and a brown liner will offer us additional market flexibility. In our graphic paper and newsprint business at Merebank the focus remains on continuing to run our operations well and delivering consistent quality to our customers. In our forestry business, the modernisation of our operations has been a key focus in recent years. We are dependent on low-cost timber from sustainably managed forests. Our research activities focus on increasing the resistance of our trees to pests and diseases, improving their ability to withstand drought conditions and

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INTERVIEW

Uncoated fine paper machine, Merebank.

increasing the rate of growth and yield. As a result of our nursery modernisation investments, we have reduced the time to market and delivered a 10-15% improvement in our timber yield. Another important area is the development of our people. This is evident in the consistently high level of training in our operations. A highlight in 2015 was that four of our employees received their international Pulp and Paper Craftsman qualification in Europe. By investing in our people, our operations have become safer and our people are more skilled, more effective and more productive. Our productivity has improved by 90% over the last three years. What measures have you put in place to ensure the sustainability of your plantations as well as consideration for the environment?

We are well aware of our responsibility to mitigate the impact of our business on the environment, including limiting our water consumption. Water is crucial throughout the paper production process, from growing trees to processing fibre into products and for ‘non-contact’ purposes such as cooling water in our production facilities. We have KWAZULU-NATAL BUSINESS 2016/17

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invested around R5-million in projects to reduce water consumption in our production processes at the Richards Bay mill resulting in a 15% reduction in water consumption in 2015. At our Merebank mill we have replaced more than 90% of the potable water use with second-class treated water and made further investments to reduce the remaining potable water, resulting in a 60% reduction in potable water consumption since 2010.

“WE HAVE DEVELOPED AN EXTENSIVE PROGRAMME OF HIGH-QUALITY TRAINING TO SUPPORT OUR EMPLOYEES IN ACHIEVING THEIR FULL POTENTIAL.” – RON TRAILL, CEO, MONDI SA.


INTERVIEW

Wetland, Mondi Gilboa.

Modernised forestry operations.

We place great importance on proactive and responsible stewardship of forests as well as freshwater ecosystems and maintaining biodiversity and habitats. Responsible forest management involves increasing long-term productivity and preserving ecosystem values in rural landscapes, and protecting high conservation value areas such as wetlands. The Mondi Group is also a long-standing supporter of the WWF-Mondi Wetlands Programme (WWF-MWP), which celebrates its 25th anniversary in 2016. The programme focuses on managing and rehabilitating wetlands with different groups of land-users (including Mondi) where we have improved wetland management on our forestry land while removing commercial trees from ripar-

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ian zones and wetlands. The WWF-MWP is now part of our global partnership with WWF. The programme’s focus is shifting to catalysing water stewardship at the landscape scale, 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. To what extent do you engage with local communities and play a role in development and upliftment of those communities?

We engage with a wide range of stakeholders, including government, NGOs, suppliers and communities, and the latter are a major focus of our investment in health, education and local enterprise. KWAZULU-NATAL BUSINESS 2016/17


INTERVIEW

Mondi’s Sizwe Mtengu with Moses Ntombela, Chairperson of the kwaZiqongwana Community Trust forestry business, Babanango Zululand.

Mondi Zimele, our local enterprise initiative, has an excellent track record of creating sustainable businesses and jobs. In addition, it helps to maintain a steady supply of high-quality fibre from a network of small forest enterprises, and this has continued to make a positive impact on the lives of people in our rural communities. Health and education are key community investment priorities. We have continued to support REAP (Rural Educational Access Programme) which provides bursaries as well as access to tertiary education in rural forestry areas. Our mobile clinics operate in partnership with local NGOs and the Department of Health, and these continue to provide high-quality healthcare for our contractors and communities. In 2015, the clinics received 54 369 visits, which included 8 498 visits by forestry contractors and 45 871 visits by local communities. Our wider community investments continue to assist and empower schools, university students, forest smallholders and entrepreneurs, as well as provide healthcare and support.

Mondi Career Guidance, Science and FET Skills Centre, Piet Retief.

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Contact us for more information on how to participate in our publications, or receive a complimentary copy.

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OVERVIEW

Sugar Sugar production levels have been affected by the drought.

I

llovo Sugar Limited has a presence in six African countries and is the continent's biggest sugar producer. The group's head office is in Umhlanga Rocks, close to the heart of South Africa's sugar industry in northern KwaZulu-Natal. Tongaat-Hulett's headquarters are about 50km north of Umhlanga, close to the King Shaka International Airport. The South African Sugar Association has offices, research laboratories and sugar-cane testing facilities at nearby Mount Edgecombe. Various divisions of SASA are housed in a building called Kwa-Shukela, as are the following organisations: the SA Cane Growers' Association, the SA Sugar Millers' Association, the National Bargaining Council for Sugar, Grocane Fire Insurance, and TSB Sugar (Durban office). The Sugar Milling Research Institute conducts research for each of the 14 raw sugar factories in South Africa and the central refinery of the Tongaat-Hulett Group, all of which are full members of the SMRI. The Institute also provides technical services to some affiliated member mills in Swaziland, Mozambique, Zimbabwe, Malawi, Zambia and Tanzania. 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. Both companies reported reduced production volumes in 2015 because of the drought in South Africa. Tongaat-Hulett's Darnall mill did not open for the season. The Illovo group reported a 10% downturn in production in September 2015. Operating profit for the six months dropped to R881-million, a fall of 36.7%. About 40% of local production is exported. There are six sugar producers who can collectively produce about two-million tons. The general trend has for less sugar to be produced. The South African Cane Growers' Association represents about 24 000 growers who produce about 20-million tons of cane. Fluctuating weather conditions in recent seasons have contributed to overall South African production of sugar declining, but the industry has a strong infrastructure, particularly in KwaZulu-Natal, the province where most of the country's sugar is grown, crushed and processed. Mpumalanga is the other province with significant capacity. Total saleable sugar production dropped below two-million tons for the first time in many years in the 2010/11 season, but has since recovered. Saleale sugar within South Africa fell from 1.649-million tons in 2014/15 to 1.620-million tons in 2015/16. KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS The R14-million Qoloqolo Sugar Cane project will boost co-operatives in the uMzumbe local Municipality. • The SA Cane Growers' Association represents nearly 24 000 growers, who produce in the region of 20-million tons of cane. • Illovo and Tongaat-Hulett are the two giants in the sugar sector. The biggest challenge to South Africa’s sugar industry is the huge subsidies available to sugar producers in the northern hemisphere. In addition to this, the countries of the Southern African


OVERVIEW Development Community have not successfully bargained with Europe as a unit, with the result that individual countries have gained preferential rights. This does not include South Africa.

Small growers Despite government and industry efforts to promote small sugarcane growers, many of these small-scale farmers are finding conditions very difficult. In the 2000/01 season, farmers in the Umfolozi district produced more than 400 000 tons of cane; by 2008/09 that figure had dropped to 142 846 tons. Poor rainfall and high input costs threaten the viability of many small farms, which are often located on land controlled by tribal authorities. The average size of a small farm is 4.74 hectares. Land reform (including the distribution of land to new small growers) is part of the policy of provincial and national government. The South African Sugar Association (SASA) reports that some 21% of freehold land under cane has been transferred from white owners to black owners since 1994 off a base of 5%. With a number of land claims still outstanding, it is clear that this number is set to grow. In 2015 SASA teamed up with the provincial government to support the Qoloqolo Sugar Cane project. This will see R14-million spent in support of co-operatives in the uMzumbe Local Municipality area on fencing, introducing methods for better yields and more cost-

effective harvesting, in addition to expanding the amount of cane under management.

Facilities Three mills in Zululand cater for 4.2-million tons, three North Coast mills take care of 3.2-million tons, the three Midlands facilities crush 3.5-million tons and the South Coast's two mills handle 3.2-million tons. Illovo and Tongaat Hulett are the major operators of sugar mills, and 12 of South Africa’s 14 mills are located in KwaZulu-Natal. Each of these companies operates one mill in the province: Gledhow, ULC, Umfolozi and TSB (the latter has a further two mills in Mpumalanga). Illovo has four mills, three sugar-cane estates, four sugar factories, a refinery and three downstream operations that make products such as furfural, furfuryl alcohol, ethyl alcohol and lactulose. The four mills run by Tongaat Hulett are located on the North Coast, while the central refinery is in Durban and the animal feed plant, Voermol, is near Tongaat. The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and can store more than half-a-million tons of sugar. It also has a molasses mixing plant.

SALEABLE SUGAR PRODUCTION Year

Tons produced in SA for SA and export

2008/09

2 260 244

2009/10

2 178 543

2010/11

1 909 236

2011/12

1 822 488

2012/13

1 951 518

2013/14

2 343 650

2014/15

2 110 550

SOURCE: SA SUGAR ASSOCIATION

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

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OVERVIEW

Oil and gas Oil and gas companies are exploring off the coast of KwaZulu-Natal.

SECTOR HIGHLIGHTS • Statoil has acquired 35% of oil exploration rights in the Tugela South field. • A gas-to-power project is mooted for the Richards Bay Industrial Development Zone. • Vopak has increased its storage capacity. • Sasol and Eni are working together in offshore exploration.

T

he search is on for oil off the coast of KwaZulu-Natal. Tugela South is an area off the coast where exploration rights were first granted to Impact Oil & Gas in 2011. Various studies have been done and ExxonMobil came on board as a shareholder and later, as operator in 2013: they were joined in 2015 by Statoil. The Tugela South Exploration Right covers in the region of 2.8million acres and future rights encompass an additional 16-million acres offshore (SAinfo). Rhino Oil and Gas and Sungu Sungu Gas are also actively exploring for oil and gas in the province, while Sasol has a three-year permit to explore off the coast of the province. Sasol has signed a partnership for Italian multinational company Eni to be the operator of the exploration effort. KwaZulu-Natal is home to two major oil refineries and is the first link in the pipeline chain that connects the 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. Royal Vopak, which runs a large terminal at the Port of Durban, has expanded capacity to 174 000m³ and is planning to grow its ability KWAZULU-NATAL BUSINESS 2016/17

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to store fuel still further. It is also planning a new storage facility at Heidelberg that will cater for petroleum and chemicals. Towns along the N3 highway are increasingly receiving investments in the logistics sector. Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP) which started delivering fluids in early 2012, with the full first phase coming on line a year later. The NMPP terminals allow for greater flexibility in supply. Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines reportedly reduces the number of fuel tankers on South African roads by about 60%. The liquid fuels and gas networks of Transnet Pipelines trav-


OVERVIEW erses KwaZulu-Natal from west to east and north to south. The petroleum network has intake stations at both Durban refineries, while the gas pipeline runs from Secunda to Durban, with diversions to the manufacturing hubs of Newcastle and Richards Bay, and along the coast between Durban and Empangeni. Transnet Pipelines employs 658 staff, with about 200 located at the head office in Anton Lembede Street in downtown Durban.

(among other things) in fuel products. The modifications to the refinery will bring it into line with the tougher legislation regarding fuel production that is in the pipeline. The Enref refinery owned by Engen can produce 135 000 barrels per day. This sophisticated refinery can convert light and heavy crude oil into high-value products that include jet and diesel fuel, solvents, bitumen, sulphur, bunker oil and aviation gasoline. Safor is a base-oil production facility (jointly owned by Engen, Caltex and Total, but operated by Engen) that produces 45% of Southern Africa’s base oils. Engen also owns the adjoining Lube Oil Blend Plant, which produces in excess of 72-million litres of finished lubricants every year. KwaZulu-Natal has the second-highest consumption of diesel fuel of South Africa’s provinces (17.8%) and the third-highest consumption of petrol (15.4%).

Petroleum

Gas

KwaZulu-Natal’s two oil refineries produce large volumes of a wide range of products. They are important regional and national assets as their joint production accounts for more than 300 000 of the 700 000 barrels of refined crude oil that South Africa produces. BP, one of the joint operators of the Sapref refinery located south of Durban, spent R1.4-billion on energy infrastructure in South Africa in the period to 2013. South Africa’s biggest refinery is Sapref. Owned jointly by Shell SA Refining (25%), Thebe Investments (25%) and BP Southern Africa (50%), it has a capacity to produce 180 000 barrels per day. The refinery also makes propylene feedstock, solvents, sulphur, asphalt, industrial-processing oils and liquefied petroleum gas. Sapref has started a 'cleanfuels' project, aiming to reduce sulphur and benzene levels

In the Richards Bay Industrial Development Zone a gas-to-power project has been proposed by the zone's managers. The plan involves importing gas from the nearby Mozambique gas fields by ship or pipeline. An even more attractive option would be if gas were found off the coast of Richards Bay. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed-methanegas exploration rights in KwaZulu-Natal to NT Energy Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. The Petroleum Agency SA is an agency of the National Department of Energy. Plants in Durban, Pietermaritzburg and Richards Bay produce a variety of industrial, household and medical gases. End products include acetylene welding products and compressed-oxygen cylinders. Air Liquide is spending R100-million on expanding its liquid-nitrogen plant in Richards Bay, and Afrox has budgeted R500-million for moving its headquarters to an 111 000m² site at Cornubia Industrial Estate near Umhlanga. Operations will be moved from the Port of Durban, Pinetown and Seaview. The new plant will be expected to fill 5 000 cylinders every day.

ONLINE RESOURCES National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency SA: www.petroleumagencysa.com South African National Energy Association: www.sanea.org.za South African Petroleum Industry Association: www.sapia.co.za Transnet Pipelines: www.transnetpipelines.net

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RBM050-40 HALOMEDIA 2016

T: +27 (0)35 901 3111 E: communication@rbm.co.za W: www.rbm.co.za


4


OVERVIEW

Mining The rich mineral sands of northern KwaZulu-Natal underpin the province's mining sector.

M

ining was responsible for about 2% of KwaZulu-Natal's gross domestic product (GDP) in 2013, which is to say R9.3billion. Half of the province's mining output (and 3.3% of South Africa's) comes from Richards Bay Minerals (RBM). 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. Of the approximately two-million tons of product that RBM has the capacity to produce annually, 95% is exported. Titanium dioxide adds opacity to paints, fibres and plastics and it is also vital to the pigment industry. Rio Tinto owns 74% of RBM. Weak global demand meant that overall production of titanium dioxide slag by Rio Tinto (including their Canadian operations) was down 25% in 2015. One of the four furnaces at RBM has been idled in response to this reduced demand. Since the deal to develop the Fairbreeze mine and smelter was signed between Canadian company Tronox and South African resources company Exxaro in 2012, $225-million has been spent on the project. The mine came on line in the fourth quarter of 2015, on budget and ahead of schedule, replacing the closed-down Hillendale mine. The final $50-million will be spent in the course of 2016. Feedstock for the slag furnaces near Empangeni is ilmenite and it produces zircon and pig iron, amongst other mineral products. China is an enthusiastic buyer of zircon, but growth in that country has not been as fast in recent months as was the case for several years up to 2015. KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS The Fairbreeze mine and smelter started operating in 2015. • The community in which Petmin's Somkhele coal mine operates are now partners in the business. • A feasibility study recommends establishing a provincial Metals Hub. • Tronox will spend $50-million at Fairbreeze in 2016.

Processing KwaZulu-Natal is home to one aluminium smelter (there were two in Richards Bay until Bayside closed in 2015), Arcelor Mittal has a large steel-making plant in Newcastle and Tata Steel KZN manufactures high-carbon


OVERVIEW ferrochrome at Richards Bay. Safa Steel has a fairly new metalcoating factory in Cato Manor. Hulamin makes rolled products at three sites in the province while the Pietermartizburg facility also makes extrusion products. The provincial government is keen to promote the downstream beneficiation of metals within the Richards Bay area. A feasibility study on establishing a Metals Hub returned a positive verdict. A small-scale mining Imbizo was held in August 2015 to look into regulations, access to funding, and technical support mechanisms for small-scale mining. Since then, the province has produced the KZN Mineral Beneficiation Strategy. The first area of focus is coal and phosphate. There is a provincial commitment to using waste material from the mineral sector as a source for beneficiated building materials and five commodity value chains are going to be examined in detail, namely Aluminium, Coal, Iron and Steel, Phosphates and Mineral Sands.

Coal Some of the province’s coalfields have been revived and the export facilities at Richards Bay make a massive contribution to the functioning of the country’s mining sector. Petmin's Somkhele Anthracite Mine, north of Richards Bay, has one of the biggest reserves of open-pit anthracite in South

Africa, with measured and indicated reserves of more than 51million tons across its four areas. In 2015 the local community of about 175 000 became 20% shareholders in the mine. The Petmin holding company is already 'empowered' (ie, 26% black ownership). Although the second six months of 2015 saw some reduction in production due to geological conditions, the mine still produced more in the year than the benchmarked annual figure of 1.2-million tons of metallurgical anthracite for ferro-alloy smelting. Somkhele also mines a lower-grade coal, what is known as 'energy coal'. Its annual capacity for this type of coal is about 350 000 tons: in the six months to December 2015, production was 8% down on the previous year (namely 157 000 tons). Buffalo Coal Corporation (formerly Forbes Coal) has Canadian roots and has two assets near Dundee: Magdalena Colliery (production capacity of 100 000 tons of saleable bituminous coal per month) and Aviemore Colliery (45 500 tons of anthracite coal). The company has two processing plants.

Other minerals Idwala Industrial Holdings quarries and mills white calcitic and dolomitic limestone near Port Shepstone, where NPC Cimpor also runs a quarry which produces sand, shale and limestone. Umzimkhulu Industrial Holdings obtained new mining rights in the course of 2015, from the national Department of Mineral Resources. The company has the rights to mine near Port Shepstone and the provincial government put the value of the investment at R187-million, with the creation of 48 jobs. The northern region has deposits of aluminium and calcitic marbles. Some low-grade bauxite is found. Vein gold mining is undertaken near the northern border with Mozambique. The Umzinto goldfield has several sites, but mining has only ever been on a small scale. Sand and aggregate are produced by Vryheid-based WH Lemmon-Warde Holdings, Lafarge and Afrisam. Corobrik has several facilities in and around Durban.

ONLINE RESOURCES Chamber of Mines South Africa: www.bullion.org.za Council for Geoscience: www.geoscience.org.za Geological Sciences, University of KZN: www.geology.ukzn.ac.za Geological Society of South Africa: www.gssa.org.za National Department of Mineral Resources: www.dmr.gov.za Southern African Institute of Mining and Metallurgy: www.saimm.co.za

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OVERVIEW

Manufacturing KwaZulu-Natal makes aluminium, steel, chemicals, vehicles and footwear.

SECTOR HIGHLIGHTS Hulamin spent nearly a billion rand on expanding capacity. • Marine manufacturing is set to grow. • Ladysmith-based Canvas and Tent were Exporters of the Year in 2014/15. • Samsung is building a television factory.

T

he estimated export value of KwaZulu-Natal business in 2014 was R112.4-billion, according to the MEC of Economic Development, Tourism and Environmental Affairs, Michael Mabuyakhulu. The sector contributes 16.5% to the provincial gross domestic product (GDP). The strongest export sectors are base-metals (32% including aluminium), mineral products such as ores, vehicles and chemical products. Manufacturing contributes 21.5% of the gross regional product (GRP). An area of anticipated growth and a focus of policy interventions is in the marine manufacturing sector. Sectors such as oil and gas, ship-building and rig repair are being targeted. In 2015 the Richards Bay Industrial Development Zone (RBIDZ) welcomed SPS Manufacturing (Pty) Ltd, a pipe manufacturer which will invest R300-million in uMhlathuze, in so doing creating 87 permanent jobs. Investment agency Trade and Investment KwaZulu-Natal brokered R1.7-billion in new investment in the province in 2014/15, much of it in the manufacturing sector, and the Services SETA set aside R41-million to KWAZULU-NATAL BUSINESS 2016/17

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encourage young entrepreneurs to make things. Samsung Electronics South Africa is spending $20-million on a television manufacturing plant in the Dube TradePort. Hulamin is a leader in the sophisticated aluminium finishedproduct sector. The company makes rolled products at Edendale, Pietermaritzburg and at Camps Drift, while its Pietermaritzburg facility for making extrusions is one of three in the country. The company's expenditure of R970million has expanded its rolledproducts capacity. The KwaZulu-Natal Clothing and Textile Cluster is upbeat about the sector in the province because of the support of the national Department of Trade and Industry’s Competitive Improvement Programme (CTCIP). The Textile and Clothing Unit within the Industrial Development


OVERVIEW Corporation (IDC) has been very active in the province. Canvas and Te n t Manufacturing (Pty) Ltd has more than 400 employees in Ladysmith and won the title of Exporter of the Year in 2014/15. There are 219 clothing companies in the province (Coface). Ninian & Lester is one of the larger employers in the textile sector, with 1 500 people making clothing (including the Jockey brand), textiles and polypropylene. The footwear sector is showing good recovery after taking a battering from Chinese imports. The purchase of 39% of Eddels Shoes by management and staff has paid off, with 385 staff now employed in making 2 700 leather shoes on a daily basis. Two international safety footwear firms operate out of Pinetown: Bata Industrial and Beier. The latter company joined forces with three other South African safety footwear manufacturers in 2014 to form the BBF Safety Group, in the process making them more competitive. Carpet manufac turers Belgotex Floorcoverings and Ulster Carpets have facilities in Pietermaritzburg and Durban respectively. Turkish group Arçelik purchased home appliance manufacturer Defy in 2011 for R2.5billion. Defy employs about 2 600 people. Companies like Böhler Uddeholm in Pinetown produce downstream products such as tooling materials and welding consumables.

Sustainable manufacturing Hulamin has been recycling its own scrap aluminium for the past 75 years. It has always been of great importance to Hulamin to ensure that the community they are in is taken care of sustainably. The environment has always been of great importance to the way Hulamin runs its business In the period between 2013-2014 aluminium demand peaked, increasing their market share growth. Their revenue went from R7 560 000 in 2013 to R8 039 000 in 2014. Hulamin took this as an opportunity to expand, thereby launching a recycling operation that would save 95% of energy used during primary aluminium production. In 2015 the company secured a five-year R270m loan from Nedbank for its new recycling plant. The company’s goal for this recycling plant is to quintuple the recycled content of its aluminium to more than 25% by 2018. The recycling facilities will not only be recycling Hulamin scrap but also extending to cans, aluminium foil, windowpanes, automotive parts and window frames. The company being a primary aluminium producer would benefit from the consistent recycled supply in the country

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

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Hulamin We are an independent, mid-stream aluminium semi-fabricator and fabricator of aluminium products. Hulamin is committed to a future with aluminium.

Hulamin is situated in South Africa, where there are large quantities of aluminium products, much of which is exported at little added value.

had doubled. Rolled products today contribute the bulk of the company’s turnover. In 2006, we expanded our rolled products capacity as a result of a R940-million investment that increased production capacity and improved the company’s ability to deliver higher value products. This expansion increased our rolled products capacity by 25%, increasing its competitiveness, especially in the foil and plate product markets.

Hulamin creates value for its stakeholders through meeting customers’ needs for high-value aluminium semi-fabricated products. In doing so, it brings economic activity to the province of KwaZulu-Natal, stimulating business activities, creating employment and contributing to the upliftment of the region. We remain committed to grow aluminium usage in South Africa through our role as both supplier and customer, in addition to our role as a responsible leader in sustainable development in southern Africa. Each of our businesses shares a passion for aluminium, which is a truly unique metal that offers a superior range of benefits and endless application possibilities.

The recent investment of the recycling plant followed a conversion of the local beverage can market from steel to aluminium in 2013. The R300-million state-of-the art facility was built to recycle used aluminium beverage cans. The expansion sees us providing aluminium can body stock for the manufacture of all-aluminium beverage cans to the local market.

We have grown and expanded our operations over the last 20 years as a result of significant investments in order to ensure the future of our company and to promote the supply and use of aluminium. As South Africa underwent the transition to a democracy and the world markets opened up in the 1990s, we committed ourselves to unprecedented transformation. This included a R2.4-billion expansion project in 1996 that improved manufacturing processes and enabled us to invest heavily in production, facilities and equipment. The ambitious expansion unleashed enormous potential at the company and, by the year 2000, turnover KWAZULU-NATAL BUSINESS 2016/17

In 2015 we ensured our future as a leading player in the aluminium industry when we became a strategic partner with Bingelela Capital, a BEE entity in Isizinda Aluminium to acquire and operate the Bayside casthouse located in Richards Bay. As we look back to our 76 years of contributing to both community building and economic activity in South Africa, we also continue to explore new opportunities and partnerships to the benefit of all our stakeholders. Think Future. Think Aluminium. Think Hulamin.

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Automotive Bell Equipment and Toyota anchor a strong automotive sector.

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oyota, which has a large factory in Durban south, sold 22.4% of the vehicles sold in South Africa in 2015, thus taking numberone spot. The company is also responsible for about onequarter of the vehicles exported by South Africa. In the month of January 2016, Toyota sold 2 773 Hiluxes, having been the country's best-selling vehicle in 2015. In November 2015 a record was broken when 3 938 units were sold. The Corolla car, the Hilux bakkie and the Fortuner SUV are manufactured at the company’s large Prospecton plant south of Durban. KwaZulu-Natal's other automotive giant is Bell Equipment. Between the Toyota plant at Prospecton and the Richards Bay facility of heavyequipment manufacturer Bell Equipment, upwards of 11 000 people are employed: both companies are market leaders. The sector accounts for 17.7% of the province's export basket. Despite tough global conditions, Bell managed to turn a record profit in 2015, largely due to cost-cutting and the depreciation of the rand. Bell has a global footprint, with South African sales accounting for about 40% of group revenue (43% in 2014; 41% in 2015). The province also has a substantial and varied automotive-supply sector. Trade and Investment KwaZulu-Natal (TIKZN) estimates that KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS The weakening rand has helped exports. • Bell Equipment recorded a record after-tax profit in 2015. • The automotive sector contributes 17% to provincial exports. the province's component automotive manufacturers enjoy a combined turnover approaching R10-billion. Powerstar trucks are assembled in Pietermaritzburg on a site formerly used by Super Group. China North Vehicle Corporation (Norinco Motors) and BEIBEN


OVERVIEW

produce about 60 000 heavyduty commercial duty vehicles every year at their plant in Inner Mongolia and the Powerstar brand has already been shown at the Johannesburg Motor Show. Two other global truck marques have assembly plants in the province: Volvo in Durban, and MAN Truck and Bus South Africa in Pinetown. MAN’s assembly plant makes front-engine bus chassis. The company is a major supplier of buses to the South African market and includes Volkswagen buses and trucks among its products. Keeping MAN and Toyota supplied is the R300-million op-

eration, Duys Engineering Group. This diverse group of companies includes in its brief the supply of truck bodies and truck components and has production plants at New Germany (Pinetown) and Richards Bay. Toyota Boshoku manufactures seats and does the interior trim on contract for Toyota. International manufacturer GUD Filters has a large presence in the province. Indian-owned Apollo Tyres SA makes Dunlop products at two large factories in the province. The Behr Group makes air-conditioning and cooling systems in Durban. Ramsay Engineering supplies cross-car beams for BMW and Ford.

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

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Water New dams and pipelines are under construction in KwaZulu-Natal.

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outh Africa is a water-scarce country and in early 2016 the drought in most parts of the country had reached serious proportions. This problem is made worse by the fact that a lot of water is lost through leaky pipes and inefficient metering. According to Water Wheel magazine (December 2014), 37% of water delivered to the nation's municipalities is lost. This challenge presents an opportunity for companies who could solve the problems, for example by providing better pipes, connections and smart metering. In September 2015 the city of Durban lost more than 40% of its water, despite water restrictions being imposed in the northern parts of the city. The Mercury reported that the losses amounted to R602.6-million per year. A related problem concerns a shortage of engineers, with the national Department of Water and Sanitation importing Cuban engineers to assist in the short term. A local solution was put in place in September 2015 when the first group of young people started training to become Water Agents, Plumbers and Artisans. The goal for the first phase is to train 15 000 young people. Umgeni Water, the province’s biggest water utility, has launched the Adopt-a-River Project, which aims to keep rivers clean, raise awareness and create jobs. On the Ncandu River that runs through Newcastle, 49 people received training in various skills such as first aid, herbicide application and alien plant identification. One person received a bursary from the national department to study at the University of KwaZulu-Natal. Purification, desalination, water-leakage management and wastewater treatment are some of the issues facing South Africans, and experienced international companies are showing an interest in the country. American companies with a presence in South Africa include the Hach Corporation, Harvard Corporation, Nalco and the Adel Wiggins Group. In 2015 the Danish government signed an agreement to help the South African government with water management and water efficiency. Companies such as smart-meter specialists Kamstrup are already active in the country.

Infrastructure The first phase of the Spring Grove Dam in the Mooi River area has been completed on schedule and has increased water supplies in the Umgeni River catchment area. KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS The Tugela Bulk Water Scheme will supply water to the North Coast. • Phase One of the Spring Grove Dam is complete. • Smart metering could reduce the huge water losses being experienced by municipalities. • Umgeni Water has launched the Adopt-aRiver Project. Spring Grove takes to five the number of dams in the Mooi-Mgeni system (including the Midmar, Albert Falls, Nagle and Inanda dams), which serve more than five-million people in Durban, Pietermaritzburg and their surrounding towns. When Spring Grove is complete, the total system yield will rise to 394-million m3/year. A new dam is being built at Smithfield and the wall of the Hazelmere Dam is being raised to increase capacity. Unfortunately, levels in 2015 and 2016 dropped to alarming levels in the latter dam, but the larger dam will be necessary when the rains come again. Construction of the new Waterloo reservoir near the King Shaka International Airport (and serving this northern area) was completed in late 2011.


The master plan will see water delivered to this reservoir from the Northern Aqueduct Augmentation Project. The Western Aqueduct project (valued at R864-million) and the associated Northern Aqueduct Augmentation Project will inject water into the rapidly developing area north of Durban. The Tugela Bulk Water Scheme (valued at R1.4-billion) will supply water to KwaZulu-Natal's North Coast. Water flows are expected to begin in the middle of 2016 in this nationally funded project. The eThekwini Municipality is spending R600-million on water and sanitation in 317 informal settlements. The provincial government committed R872-million to water infrastructure projects for the 2015/16 financial year. This money was allocated from the Municipal Infrastructure Grant.

Water boards Talks have begun to rationalise the province's water boards into one body. The aim is to achieve economies of scale and efficiency and to make it easier to raise funds for large projects. Umgeni Water currently supplies more than 400-million cubic metres 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.

Construction of the Spring Grove Dam.

The company has five dams, 10 waterworks, five water-treatment plants and two wastewater works. Large parts of the northern part of the province are served by Mhlathuze Water, which has built inter-basin transfer schemes, watertreatment plants and sewerage plants which it operates on behalf of local municipalities. The utility has assets valued at more than R3-billion and its area of supply covers 37 000 square kilometres. The Bill & Melinda Gates Foundation has made a difference in the lives of 200 households in the uThungulu District by making clean water available. This project was facilitated by Trade and Investment KwaZulu-Natal. Another project in this district is the extension of the Sundumbili water-treatment works. This plant treats water from the Tugela River. Engineering and environmental consultancy Royal HaskoningDHV is leading the R17-million project. Nedbank is putting R9-million over five years into clearing alien vegetation in the country's water-catchment 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. The WWF Nedbank Green Trust is one of the major sponsors behind the Dusi uMnengi Conservation Trust, which works for the environmental health of the uMngeni and uMsunduzi Rivers. A Green Corridor initiative is one of the projects. The Dusi Canoe Marathon is a major income-generator, but if the river is clogged up and dirty then that income becomes threatened.

ONLINE RESOURCES Duzi uMngeni Conservation Trust: www.duct.org.za Mhlathuze Water: www.mhlathuze.co.za National Department of Water and Sanitation: www.dwa.gov.za Umgeni Water: www.umgeni.co.za Water Balance Programme: www.wwf.org.za Water Institute of Southern Africa: www.ewisa.org.za Water Research Commission: www.wrc.org.za

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Renewable energy Bio-mass is leading the way in KwaZulu-Natal.

SECTOR HIGHLIGHTS Richards Bay is set to be a renewable energy hub. • St Lucia may get a wind farm. • Sugar cane is a good crop for feedstock for bio fuel.

Massive wind farm projects are planned for St Lucia.

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outh Africa has embarked on a very successful campaign to get private companies to provide power to the national grid using renewable resources such as wind, the sun and water power. KwaZulu-Natal has so far received only one of these licences, and is determined to catch up. Since 2011 dozens of projects, particularly solar and onshore wind projects, have been approved, adding more than 5 000MW to the potential of the national grid and bringing in investment worth more than R150-billion. The only project approved in KwaZulu-Natal as part of the Renewable Energy Independent Power Producer Programme (REIPPP) is a 16.5-megawatt (MW) bio-mass project which is to be built on the North Coast of KwaZulu-Natal. The huge forestry, timber, paper and pulp industries of the province carry with them the potential to provide feedstock for the renewable energy sector. Forestry waste, sugar cane and agricultural waste will provide the feedstock for a R2-billion facility that will largely supply the tenants of the Richards Bay Industrial Development Zone (RBIDZ) with power. The company Byromate, which has wind and solar projects elsewhere in South Africa, expects to start delivering power in 2018. The provincial government wants to see the RBIDZ become a hub for renewable energy, and this bio-mass project is expected to be just the first of many in solar power, wind and other types of renewable energy. KwaZulu-Natal's most prevalent crops, sugar cane and sugar beet, are among the most efficient and cost-effective feedstock for the KWAZULU-NATAL BUSINESS 2016/17

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creation of biofuel. A R1.8-billion project is planned for the northern area of Makhathini. The Industrial Development Corporation (IDC) is the major investor in this scheme which is intended to produce 72-million litres of ethanol and 34 megawatts of electricity. Sugar grower and producer Tongaat-Hulett believes that the national sugar industry could generate between 700MW and 900MW. An entrepreneur in the Midlands makes biodiesel from used oil. Darryl Melrose's company, Bio Diesel SA, produces 20 000 litres of diesel every month. Although it is not part of the REIPPP, one of the country's biggest RE projects is in fact in KwaZuluNatal: the Ingula pumped-storage scheme in the northern reaches of the province will generate 1 332MW when the R16.6-billion facility is fully operational. This is a 'peak' power station that only comes into operation demand peaks: water is pumped to the upper reservoirs before it is released to create power as it falls to the


OVERVIEW lower level. New transmission power lines from Mpumalanga are also being built, and the national Department of Energy is investing in an open-cycle gas turbine plant.

Wind The Provincial Planning Commission is investigating wind channels and sunlight intensity levels in KwaZulu-Natal, and 37 turbines are proposed for a wind farm to be run by St Lucia Wind Farms Ltd near Hluhluwe. The Premier's office calculates this will carry an investment value of R150-million and has the potential for creating 100 jobs.

Cogeneration Biomass Cogeneration (combining heat and power) is gaining in popularity, especially in the sugar-milling industry. Calcium carbide producer SA Calcium Carbide opened its R115-million plant in March 2013, with the help of the Green Industries Strategic Business Unit of the Industrial Development Corporation. The plant will generate 8MW and reduce by 20% SACC’s dependence on the national grid. Zest WEG Group is targeting the cogeneration sector in the province because of the company's special skills in this area, acquired when WEG bought Zest in 2010. WEG has been very active in Brazil in turning pulp, paper and sugar into fuel.

Biomass technology is at the centre of the conversion scheme of South African Breweries at its Prospecton plant south of Durban. Methane-gas emissions from a nearby effluent plant are piped to the plant where they are converted to electricity. The eThekwini Municipality is spending R140-million on a plant that will convert methane gas from its major landfill sites. Lanele Resources and Amatala Resources have plans to produce fuel from municipal waste.

Sea power A unique project is planned for the sea off the coast of Durban. Floridabased Hydro Alternative Energy Inc (HAE) believes that its Oceanus (TM) system will allow it to harness the power of the strong Agulhas current that runs along the KwaZulu-Natal coast. Previous sea-power systems have sought to use the power of tides. The R155-million project, which must still pass the scrutiny of environmental studies, has the support of Durban Investment Promotion and private companies.

Solar

ONLINE RESOURCES

The growing popularity of solar water heaters has encouraged Durban manufacturer Solar Beam to spend R2.5-million on expanding its premises. A Solar Energy Institute is to be established in the province, a joint initiative between the University of KwaZulu-Natal and the Georgia Technology Institute of the USA.

Eskom: www.eskom.co.za KZN Energy: www.kznenergy.org.za National Department of Energy: www.energy.gov.za Southern African Bioenergy Association: www.saba.za.org Southern African Solar Thermal and Electricity Association: www.sastela.org/index.html South African Wind Energy Association: www.sawea.org.za Sustainable Energy Africa: www.sustainable.org.za Sustainable Energy Research Group: www.mecheng.ukzn.ac.za Sustainable Energy Society of Southern Africa: www.sessa.org.za

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Banking and financial services Merchant banking is very competitive in KwaZulu-Natal.

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ogether with real estate and general business, the financial sector in KwaZulu-Natal accounts for 18% of gross domestic product (GDP). With the renewable energy sector being actively pursued in KwaZulu-Natal, the creation by Investec and the European Investment Bank of a renewable-energy fund of €100-million will create many options for investors. The four major national retail banks (Absa, Standard Bank, First National Bank and Nedbank) are well represented in KwaZulu-Natal, while relative newcomer Capitec Bank has shown remarkable growth with its low-cost offerings: a cheque account, a savings account and an unsecured loan. Capitec was established in 2001 and listed on the JSE in 2002. As of August 2015, Capitec had 691 branches, a rapid increase over the benchmark figure of 500 that was achieved in January 2012. With 133 branches in KwaZulu-Natal, and in the context of other banks closing down some rural branches, this is a banking business that is clearly on the move. Capitec customers can also draw cash in retail stores such as Pick n Pay, Boxer and Shoprite. In 2015 the bank had 6.7-million clients, up from 3.7-million just three years earlier. Capitec has 11 000 employees. KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS €100-million is available to renewable energy investors. • Capitec now has 133 branches in KwaZuluNatal. • Old Mutual has announced plans to separate its four divisions. In the retail banking sector, despite really tough economic conditions in recent months and years, South Africa's Big Four (Standard Bank, Absa, First National Bank and Nedbank) increased headline earnings by 12.5% to R33.8-billion in the second six months of 2015. Profits


OVERVIEW across the Big Four totalled R73.8billion for the year, according to a survey done by PWC (Major Banks Analysis). Some of the figures published reflect the strain that consumers are feeling: credit impairments went up by 10.8% and nonperforming loans also grew. Competition is stiff in developing new strategies to incorporate the emerging second economy and the largely rural 'unbanked' communities. These new banking means and methods are developing the sector and giving it new flexibility, diversity and range. alBaraka Bank has its headquarters at Kingsmead in Durban, which is also the site of its corporate-banking division. HBZ Bank, a wholly owned subsidiary of Habib Bank and AG Zurich, operates an Islamic branch in Westville and has branches in Durban and Pietermaritzburg. In the sector catering to highnet-worth individuals, Nedbank has adopted a new strategy by combining BoE Private Clients (South African clients) and Fairbairn Private Bank (international clients). All of these clients are now be served by Nedbank Private Wealth. Absa's British investor, Barclays, has indicated it is aiming to sell its stake in African operations and financial services group Old Mutual (54% stakeholder in Nedbank) and has announced its plan to create four stand-alone businesses out of the Old Mutual Group. This would allow the UK-based wealth management business and the New York-based asset managers to be free of linkages

to the rand, while the South African businesses (Nedbank and Old Mutual Emerging Markets) would be free to focus on their specialities.

Project funding Merchant banking and investment banking are the most competitive sectors within banking. In KwaZulu-Natal, banks have been vital in getting really big infrastructure projects under way, a trend that is set to continue for some time to come, with provincial and national government committed to a comprehensive infrastructure upgrade. The European Investment Bank has extended a €50m long-term loan through Rand Merchant Bank to fund the massive water systems upgrade being undertaken by the eThekwini Municipality. The investment programme encompasses two new aqueducts and the replacement of 1 600km of old asbestos water mains. RMB was also involved in several Tongaat-Hulett and Richards Bay Coal Terminal projects, two major players in the provincial economy. Nedbank Capital supported Seacom’s R240-million undersea-cable project, and has signed a three-year funding agreement with healthcare group Netcare to the value of R1-billion. Absa’s public-sector division holds the provincial government banking account. The KZN Growth Fund is a project-finance facility supported by the KwaZulu-Natal Provincial Government, Standard Bank, the Development Bank of Southern Africa and the Infrastructure Corporation. The fund is capitalised to the extent of R5-billion.

New customers, new technology Despite the incredible strides that have been made in providing banking services to the previously unbanked, there is still a long way to go. MasterCard, for example, has pointed out that only 2% of retail transactions on the continent of Africa are conducted electronically. The consulting firm McKinsey puts the figure for Africa's population not connected to formal banking at close to 80%: this presents an opportunity for South African banks in Africa. South Africa has the highest connection rate in Africa. Finscope's 2014 survey of South African banking and financial surveys shows that between 2004 and 2014 a remarkable eight-million people were connected to the financial system in some way. Overall, the 'financially included' reached 31.4-million (up from 17.7-million in 2004). In a category called 'formally served' which includes services other than formal banks with branch networks, the percentage of South Africans so served grew from 50% to 80%; in the 'banked' category (more traditional but including new devices), the percentage grew from 46% to 75%.

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With cellphone access in that time having grown from 42% to 90%, one would expect that to have been the main reason for this growth, but that is not the case. James Francis, writing for Brainstorm, points out that of the nine-million South Africans who use mobile money, only 3% fall in the LSM 1-4 category, ie poorer people. He writes that 'mobile money in South Africa has been catastrophic'. However, the South African banking sector's excellent infrastructure (plus the efforts of the Big Four and Capitec to reach out to new markets) has made up for this failure. Among recent innovations designed to reach the unbanked were Teba Bank allowing customers to deposit at supermarkets, Pick n Pay Go Banking (a division of Nedbank), 70% of Absa's new ATMs (400 in one year) in poorer areas and Absa launched two mobile banks, FNB also created mobile branches and most of Standard Bank's new sites were planned for townships (Finscope).

ONLINE RESOURCES Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Insurance South Africa: www.insurance.za.org KZN Growth Fund: www.kzngrowthfund.co.za Post Bank: www.postbank.co.za South African Reserve Bank: www.resbank.co.za

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Absa’s partnership with Thumbzup allows shops to accept card payments with smartphones and tablets. Introduced in 2012, the device turns phones into terminals. In 2012, Absa took over Edcon’s card portfolio, massively increasing the bank’s reach (Edcon brands include Edgars, CNA and Jet). Absa’s Entry Level and Inclusive Banking (Elib) branches have proved popular, accounting for an increasingly high percentage of the bank’s loans, despite still representing quite a small number of actual branches. In 2012, Nedbank launched Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone. FNB has a wide range of cellphone-banking options and a Facebook application whereby cellphone vouchers can be posted on the social-networking site. The eWallet application converts the voucher into cash or airtime. Standard Bank’s communitybanking initiative offers a lowcost cellphone-banking service. Retailers can act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas. Another area where banks are growing new markets is in affordable housing. In the context of a large backlog, Standard Bank announced that it was setting aside R2-billion for the affordable segment. The municipality of eThekwini has 430 informal settlements, accounting for more than 252 000 households.


Seda Offerings Seda branches provide offerings that assist businesses in various phases of their life cycle. Seda Business Talk – Offerings focusing on clients who want information on starting a business Assistance Provided: • Business Advice and Information • Small Enterprise Training • Business Registration Seda Business Start – Provides tools and techniques for clients who are ready to start a business and want assistance and direction. Assistance Provided: • Business Planning • Business Counseling • Facilitation of Access to Finance • Business Support Seda Business Build – Offerings focusing on clients who want skills to sustain and strengthen their businesses. Assistance Provided: • Capacity Building Systems • Mentorship • Tender Advice / Procurement • Export Readiness • Franchising Seda Business Grow – Offerings focusing on clients who want to grow their businesses and expand nationally and internationally. Assistance provided: • Business Systems Development • Cooperative Support • Growth Strategies

For more information contact us at: 031 2779500 or visit our website: www.seda.org.za

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


PROFILE

Standard Bank, KwaZulu-Natal, Personal and Business Banking Standard Bank KwaZulu-Natal has an extensive footprint throughout the province, with particularly effective and innovative Personal and Business Banking divisions.

Behind the bank

“Through these dedicated units with specialist staff, we offer a range of solutions to our customers from the most basic to the most sophisticated of financial services. Our aim is to ensure that our customer’s requirements are always met through the most cost-effective and convenient methods we can offer them,” adds Noorbhai.

Standard Bank ’s Personal, Business and Commercial Banking divisions offer banking and other financial services to individual customers and businesses ranging from small to large enterprises in South Africa, in addition to 20 countries in sub-Saharan Africa.

Today, Standard Bank Group prides itself on being a global bank with African roots. The largest African bank by assets and earnings, it operates in 20 countries on the African continent, including South Africa, as well as in other selected emerging markets. The Group’s aim is to grow their presence selectively in high potential markets in Africa and in other emerging markets, either organically or, where appropriate, by acquisitions.

“We strive to maintain high standards of service to our customers,” says Imraan Noorbhai, the provincial head of Standard Bank's KwaZuluNatal operations. Imraan Noorbhai is supported by an enthusiastic leadership team comprising Ian Shibe (Head, Retail Banking), Hameed Noormahomed (Head Business Banking) and Nathan Govender (Head Commercial Banking). KWAZULU-NATAL BUSINESS 2016/17

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PROFILE “Standard Bank KwaZulu-Natal’s ‘Every Child Must Read’ campaign was launched in Durban in March 2016, and this represents a typical example of the concrete way in which Standard Bank is contributing to the societies which they serve. The mobile library campaign will bring books to many communities and children who need them,” says Noorbhai.

Contact us Imraan Noorbhai, Provincial Head KwaZulu-Natal Imraan.Noorbhai@ standardbank.co.za

Hameed Noormahomed, Head Business Banking KwaZulu-Natal Hameed.Noormahomed@ standardbank.co.za “We uphold high standards of corporate governance and are committed to advancing the principles and practice of sustainable development. Our success and growth over the long term is built on making a difference in the communities in which we operate. We are committed to moving Africa forward,” says Noorbhai.

Ian Shibe, Head Retail Banking KwaZulu-Natal Ian.Shibe@ standardbank.co.za

The Group’s social compact commits them to contributing to the socioeconomic development of countries in which they operate in a way that is consistent with the nature and size of their respective operations. This commitment translates into providing financial services and products responsibly, with due consideration for the needs of the society, customers, staff, shareholders and the environment, as well as with the thought of future generations in mind.

Nathan Govender, Head Commercial Banking KwaZulu-Natal Nathan.Govender@ standardbank.co.za

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PROFILE Products available include transactional accounts, savings, investment and lending and mortgage loans. Credit cards and vehicle financing is also available, while short- and long-term insurance offerings include home-owners' insurance, funeral cover, household contents and even loan protection. Life cover, disability insurance and investment policies are provided by qualified intermediaries. Standard Bank Personal Banking also offer financial planning and fiduciary advice and are able to provide personalised and qualified assistance with personal matters such as will drafting, trust and estate administration.

Celebrating 153 years of moving South Africa forward Having put down its roots in the Eastern Cape in 1862, Standard Bank is one of South Africa's oldest companies. When it was established, the vision was for a bank that understood its customers better, had people with strong knowledge of local business conditions and would do a better job of connecting borrowers with lenders. This vision created the platform for the kind of bank it would become and the qualities on which its customers would come to rely. Over its history, Standard Bank has grown from a mere few staff members to over 48 000 today, at the same time extending its roots deep into the fabric of South African society. The Group has also evolved and adapted along with their customers, in the process growing a rich heritage while nurturing and protecting their reputation.

Private Banking Standard Bank Private Banking matches the needs of their clients by providing successful and highly accomplished individuals with personalised financial solutions. Their highly qualified Private Banking team will deliver the personal attention you deserve with a comprehensive offering that encompasses status and priority. For such individuals a full suite of products and services are available that enable them to access their funds at their convenience, in addition to a credit portfolio and a balanced wealth creation and preservation portfolio. Products include wealth management, investment and advisory services, tailored banking as well as specialised solutions for high net worth individuals, both onshore and offshore.

Personal Banking

Contact:

Whether you want to transact, save or borrow, Standard Bank Personal Banking have the financial solution for you, including innovative products and services designed to evolve with the changing needs of their clients.

Sidney Reddy Sidney.Reddy@standardbank.co.za

Business Banking As South Africa’s leading Business Bank, Standard Bank understands what it means to do business in Africa and beyond. To provide this reliable service they have developed a specialist product expertise in addition to strong local capacity and global distribution reach.

Their transactional banking solutions have been developed to meet the individual needs of clients, and these come with a range of features and benefits designed to add real value to your life. KWAZULU-NATAL BUSINESS 2016/17

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PROFILE Their Business Banking solutions have been developed to meet the business needs of each client and they offer a range of products and services designed to add real value to every business. These include transactional accounts and lending facilities, structured working capital finance, commercial property finance, merchant transaction solutions, fleet finance, insurance and financial planning and fiduciary advice.

ment and payment solutions through a variety of transactional products. Standard Bank offers lending within the Commercial Banking section ranging from working capital required to borrowing to acquire commercial property and finance fleets. Merchant services are also offered to commercial enterprises, and a full suite of insurance products – ranging from simple and complex product offerings – is available from the Group’s specialist staff.

Standard Bank has five Business Banking Suites in KwaZulu-Natal.

Contact:

Contact:

Head Commercial Banking Nathan Govender, Nathan.Govender@standardbank.co.za Financial Consultancy Louise Nel Louise.Nel@standardbank.co.za Vehicle & Asset Finance Shaun Wood Shaun.Wood@standardbank.co.za Sales & Service Nicky Thompson Nicky.Thompson@standardbank.co.za Agriculture Sarah van der Merwe Sarah.Vandermerwe@standardbank.co.za Public Sector Nelisiwe Mkhize Nelisiwe.Mkhize@standardbank.co.za Website: www.standardbank.co.za Facebook: Facebook.com/StandardBankSA Twitter: Twitter.com/askSBSA

Southway Suite Candice Gerritsen Candice.Gerritsen@standardbank.co.za Gateway Suite Karen Eccles Karen.Eccles@standardbank.co.za Highway Suite Srinivasen Naicker Srinivasen.Naicker@standardbank.co.za Ukhahlamba Suite Lyle Collins Lyle.Collins@standardbank.co.za Nyakatho Suite Mthuthuzeli Makoba Mthuthuzeli.Makoba@standardbank.co.za

Commercial Banking Standard Bank is aware of the importance of entrepreneurial growth within South Africa, and to support this growing economic phenomenon they create and deliver value to their entrepreneurial clients by providing them with the financial and non-financial solutions they need that offer support and growth opportunities for their clients’ businesses, whether they are located within South Africa or beyond our borders. Foreign exchange falls within the ambit of this section, as does liquidity management, trade, invest-

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PROFILE

Generation 8 – creating human, simple and honest experiences.

The Standard Bank Group has international representation in Angola, Botswana, Brazil, China (including Hong Kong), Democratic Republic of Congo, Ghana, Isle of Man, Ivory Coast, Japan, Jersey, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Singapore, South Africa, South Sudan, Swaziland, Taiwan, Tanzania, Uganda, United Arab Emirates, United Kingdom, United States of America, Zambia and Zimbabwe.

Moving forward also means giving back.

Small and medium enterprises Standard Bank is committed to being the bank that partners with clients in order to help them to realise their entrepreneurial dreams, whether you have just started your own business, want to manage your business more effectively or even want to take your business to the next level.

Moving Forward

Chatsworth/Port Shepstone/Pinetown Region Jean Hattingh Jean.Hattingh@standardbank.co.za Pietermaritzburg Region Sibusiso Majola Sibusiso.Majola@standardbank.co.za Newcastle Region Marlon Reddy Marlon.Reddy@standardbank.co.za Kingsmead/Westville Region Rajan Govender Rajan.Govender@standardbank.co.za Umhlanga/Phoenix Region Garrett Johnson Garrett.Johnson@standardbank.co.za Richards Bay Region Rogers Blose Rogers.Blose@standardbank.co.za

Dedicated business bankers instore at individual branches are supported by specialists whose mission it is to ensure that you get the best banking services available. These specialist bankers are equipped to answer any questions you have and will also be able to assist in setting up accounts and arranging finance for all your small business needs. Contact:

Allan Ambrose Allan.Ambrose@standardbank.co.za Standard Bank has six regions in KwaZuluNatal where qualified specialists are on hand to advise SMME customers: KWAZULU-NATAL BUSINESS 2016/17

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PROFILE

OPERATING ENVIRONMENT: THE WORLD AND SUB-SAHARAN AFRICA robust than in many other developing regions of the world, the strong growth momentum evident in the region in recent years has not been maintained, particularly within oil-exporting countries. The 2015 economic growth forecasts for South Africa were marked down progressively during the year as the full impact of commodity price deflation and weakening business and consumer confidence limited demand. Although there was notable stabilisation of electricity supply in the second half of 2015, unfolding drought conditions, higher interest rates and policy uncertainty subdued investment and cyclical consumption; economic growth is expected to have been 1.3% in 2015, down from 1.5% in 2014. A sharply weaker exchange rate (in response to investment portfolio outflows) and a continued current account defi cit accompanied a broad acceleration in market volatility towards the end of the year. This was exacerbated by market concerns related to the unexpected removal of South Africa’s Minister of Finance in December.

In 2015 global economic growth remained moderate at 3.1%, and the International Monetary Fund anticipates that growth in emerging markets and developing economies will decline for the fifth consecutive year. A modest recovery has continued in advanced economies, with a gradual monetary tightening in the United States as several other major advanced economy central banks continue to ease monetary policy. Market concerns regarding the outlook for the Chinese economy have affected other economies through commodity prices, diminishing confidence and increasing volatility in financial markets. Manufacturing activity and trade remained weak globally, not only due to developments in China, but also because of subdued global demand and investment. Sub-Saharan Africa’s economic growth is estimated to have reduced sharply to 3.5% in 2015 from 5.0% in 2014 as lower commodity prices have impacted on net exports, in the process placing pressure on economic activity even though lower oil prices have eased energy import costs. While economic activity remains more

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Excellence and caring – a successful combination Standard Bank wins major awards and puts literacy on the front foot in KwaZulu-Natal.

The recent award of best "Professional Services'" to Standard Bank by the Durban Chamber of Commerce and Industry (DCCI) came on top of a hat-full of awards which the banking group won in the Banker Africa awards in early 2016. For the children of six schools in areas where Standard Bank KwaZulu-Natal has provided mobile libraries, Standard Bank is a certified winner as a corporate citizen which cares for the communities in which it operates. The launch of the Standard Bank “Every Child Must Read” campaign was held at the bank’s regional office in the Kingsmead Office Park on 29 March 2016, with the Deputy Minister of the Department of Basic Education, Mr Enver Surty, in attendance. The project provides mobile libraries to six deserving schools located in the vicinity of the bank's major

branches in KwaZulu-Natal. These areas are Newcastle, Pietermaritzburg, Richards Bay, Durban/Westville, Phoenix/Umhlanga and Chatsworth/Pinetown. The provincial head of Standard Bank KwaZulu-Natal, Mr Imraan Noorbhai, spoke at the launch, where he made the link between education and prosperity. “A literate, educated society is a safer, healthier and more prosperous society. So by promoting reading, writing, and other academic subjects it will lead the way in promoting prosperity through knowledge,” said Noorbhai. “It is envisaged that the introduction of these mobile libraries to the six previously disadvantaged schools will go a long way towards improving the literacy rate in our province.” Deputy Minister Surty praised Standard Bank for this initiative and urged all South Africans to come on board with support.

Deputy Minister of the Department of Basic Education Mr Enver Surty, Ahmed Motala Chief Executive Officer of NAEF (New Africa Education Foundation) and Imraan Noorbhai.

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A mobile library from the Every Child Must Read project.

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PROFILE “We need to give books as gifts, we need to read to our children and get them to read to us. This cannot be done in schools alone we need to read in our homes as well,� said Minister Surty.

region's people, businesses and economies. They also reflect the core philosophy of the magazine's publisher, CPI Financial, of identifying and promoting excellence and best practice in financial services.

Winners in KZN

"In such a competitive market such as Southern Africa, and with the recent economic climate across several countries in the region, their performance stands out," says Robin Amiot, Chief Executive Officer: CPI International.

At its annual awards ceremony, the Durban Chamber of Commerce and Industry chose Standard Bank KZN as the best business in the "Professional Services" sector. This includes financial services and banking and investment, but the category is a broad one, and the bank was also competing against businesses from the professional services, automotive, travel and transport, skills and development sectors. Mr Muhammad Seedat, the vice-president in charge of finance at the DCCI, said that celebrating business and its efforts in driving the economy was a highlight of the organisation's 160th annual gala dinner. Seedat, who headed the judging panel, said that innovation and the ability to adapt to change while staying ahead of competitors were the most important elements in choosing the winners.

Winners in Africa After more than 3 500 votes were cast across 29 categories by the readers of the CPI Financial magazine and registered users of the financial news website www.cpifinancial.net, Standard Bank came out as a mulitiple winner in the Banker Africa Southern Africa awards. All 29 award winners were chosen from more than 120 nominations across all the categories by their peers in the industry. Standard Bank took the headline category of Best Regional Bank for Southern Africa as well as the prominent recognition of Best Retail Bank in the region, while Standard Bank's Corporate and Investment Banking (CIB) arm was voted Best Investment Bank for the region. The Banker Africa Southern Africa Awards, now in their fourth year, are designed to reward excellence in financial services, identifying the key players working to help create a prosperous, diversified future for all of the

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Imraan Noorbhai, with the Business Excellence Awards 2016 trophy, which Standard Bank won in the "Professional Services" category.

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Development finance and SMME support Funds are available for entrepreneurs in KwaZulu-Natal.

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mainstay of funding for small and medium enterprises in KwaZulu-Natal is the provincial government's Ithala Development Finance Corporation (Ithala). A total of 114 new enterprises received R276-million to help them get started in the 2014/15 financial year. The fund could claim the creation of 880 jobs on various projects, two of the biggest of which were the Ithala Trade Centre and the Mount Edgecombe Light Industrial Park. The former is designed as a 'one-stopshop' for all matters relating to the provincial Department of Economic Development, Tourism and Environmental Affairs (under which Ithala falls). The Light Industrial Park aims to integrate township businesses with 'upmarket' enterprises, especially with regard to supply chains. An amount of R61-million was set aside to create the infrastructure for the park. As a way of boosting township and rural communities, district warehousing facilities are being built using municipal and Ithala properties around the province. Small farmers and traders often struggle with storage so this solution will go a long way to assisting them to buy in bulk and, consequently, get some discounts on their purchases. The Small Business Growth Enterprise (SBGE) will run a pilot project which will also contain a bulk-buying component, thereby further assisting small enterprises. Another initiative aims to get small traders organised through the setting of a provincial small traders' association. Other provincial government initiatives promoting small business include the creation of the KZN Fashion Council (to support designers), the KwaZulu-Natal Furniture Initiative (aimed at 200 businesses) and industrial parks that will provide hubs for automotive supply and chemical enterprises. An active national agency in supporting entrepreneurs is the Small Enterprise Development Agency (Seda). 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 assist with the rehabilitation of existing enterprises. 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 incubators in KwaZulu-Natal include ICT and KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS The KZN Growth Fund has to date disbursed over halfa-billion rand. • Absa's SME fund finances projects from R5 000 to R3-million. • Seda has 12 Incubators in KwaZulu-Natal. • Joint warehousing facilities are being offered to small traders.

construction (three centres each), furniture and hi-tech (two each) and chemicals, and essential oils. Although Seda is not a financial institution in itself, in 2013/14 it helped 1 379 small businesses


OVERVIEW get work from government to the value of R33.9-million. The agency served more than 10 000 enterprises in the same period, most of which increased their turnover and employment numbers. The incubation programme worked with 1 587 businesses and created nearly 3 000 jobs. Research by Absa shows that SMMEs were supporting 60% of the country’s employable population in 2011, against a figure of just 18% in 1998. The 2012 Absa SME Index noted that of the country's 700 000 businesses, only 270 000 employ more than five staff members. The average number of people employed is 11.

Larger projects The KZN Growth Fund will end its mandate in August 2016: this project-finance debt fund of R787.5-million was underwritten by the Development Bank of South Africa, Standard Bank and the KZN Department of Economic Development, Tourism and Environmental Affairs. In funding large private projects, the expectation was (and is) that smaller suppliers down the value chain will also benefit. Among the Growth Fund's most recent projects to be funded are: • SA Shipyards expansion, R42.8-million (150 jobs) • Dark Fibre Africa telecoms cabling installation, R193-million (4 201 jobs) • Link Africa telecoms, R65million (500 jobs) • Mpact plant expansion, R200-million (1 760 jobs).

National government has created a new agency to spur the development of SMMEs, the Small Enterprise Finance Agency (Sefa), which falls under the Industrial Development Corporation, one of the biggest and most significant agencies in economic development in the country. The IDC provides finance across a range of sectors from agriculture to tourism. It has holdings in several companies with a presence in 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. The IDC also funds local development agencies such as the Hibiscus Coast Development Agency. The IDC will spend R102-billion to 2016, of which R22.4-billion has been set aside for 'green economy' initiatives and a total of R20.8-billion for manufacturing support. All of the major banks have SMME offerings. Absa Bank’s SME Fund is driven by its Small Business Division and the Enterprise Development unit. Absa's SME fund is available to fund projects from R5 000 to R3-million, and it can be given to start-ups or existing businesses. The target market is black-owned businesses which don't have access to normal lending or banking channels. The Absa Development Credit Fund, a partnership with the United States Development Credit Authority, is another avenue for entrepreneurs. Standard Bank’s Community Investment Fund (CIF) initiative extends loans to informal businesses. The CIF has distributed more than R7-million to more than 630 businesses through its six funds in three provinces. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership.

ONLINE RESOURCES Business Partners: www.businesspartners.co.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za Ithala Development Finance Corporation: www.ithala.co.za KZN Growth Fund: www.kzngrowthfund.co.za KwaZulu-Natal Department of Economic Development and Tourism: www.kznded.gov.za National Department of Trade and Industry: www.dti.co.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za South African Institute of Entrepreneurship: www.entrepreneurship.co.za

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Education and training The education sector in KwaZulu-Natal needs to grow.

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he desire to learn is strong in KwaZulu-Natal. For the 2016 academic year the University of KwaZulu-Natal (UKZN) received more than 84 000 applications for the 8 770 spaces available in its first-year undergraduate programmes. With 30% of South Africa's school pupils in its schools, the province's results have a big bearing on how the nation fares. Recent results in the matriculation examination (Grade 12) have caused consternation, coming off a high of almost 80% success (in 2013) to just over 60% in 2015. The Premier of the province has set up a task team to come up with solutions, most of which involve teacher training. There are two universities in addition to two universities of technology in KwaZulu-Natal, while the national distance university, the University of South Africa (Unisa), has a presence in five locations. UKZN has close to 40 000 students studying on five campuses in two cities. Greater Durban hosts Howard College, Berea (environment, engineering, law, humanities) and the Nelson Mandela School of Medicine at Congella. The UKZN administration and the Graduate School of Business are based at Westville (also science, engineering, health), whereas the Edgewood, Pinetown, campus focusses on education. The Pietermaritzburg campus offers a broad academic programme but its specialities are fine art, theology and agriculture. UKZN also hosts the National Research Foundation. The most popular first-year courses applied for in 2016 were Social Work, Education and all programmes in Health Sciences (Medicine, Nursing, Optometry, Pharmacy, Sport Science, Physiotherapy). In 2014 KZN published the most 'output units' of any South African university for the third year in a row. It has the second-most postdoctoral students in the country and in 2015 awarded all five researchers of its South African Research Chairs Initiative (SARChi) programme to women researchers. 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. Varsity Colleges has campuses in Durban North, Westville and Pietermaritzburg. KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS The University of KwaZuluNatal is top of the class in outputs. • Training colleges have been re-branded. • JSE-listed private schools are a growth sector.

Training National and provincial government are investing heavily in training. Various provincial government departments awarded about R316-million in support and bursaries for more then 5 000 students across the province. There is a National Student Aid Financial Aid Scheme which is under pressure following a concentrated protest across South Africa against high university fees. Bursaries are also available under the National Skills Fund. What for several years were known as Further Education and Training Colleges (FET) have now been re-branded as Technical and Vocational Education and Training (TVET) Colleges. KwaZulu-Natal has nine such colleges with a total enrolment of about 80 000 students.


OVERVIEW Coastal KZN TVET College gives students practical experience through facilities such as the Nongalo Industrial Park, where school furniture is repaired and burglar bars and computer tables are made. The college has several sites on the South Coast and caters for 15 400 students. Majuba TVET College has a focus on engineering as the coal and steel industries are prominent in Newcastle. Some of their engineering students have done apprenticeships on Sibanye gold mines in Gauteng. The Mnambithi TVFET College is located in the Battlefields Route tourism area and offers National Diploma courses in tourism, among other qualifications. The Premier's office in 2015 collaborated with the Municipal Infrastructure Support Agency and the KZN Academy to recruit and place 86 young learners from TVET colleges in eight municipalities to enable them to gain workplace experience in technical skills. A bigger programme, the R74million Public Sector Internship Programme, saw 1 237 graduates gain experience while the Work Integrated Learning Programme (of the national Department of Higher Education) placed 255 TVET students in provincial departments and private companies. In addition, 680 apprentices (including 200 in 35 private companies) are learning on-site skills as fitter machinists, tool-jig-anddie-makers, welders, bricklayers, spray painters, plumbers and carpenters, in addition to many other jobs.

A R22-million project of the provincial government will in 2016 offer short technical courses to 100 apprentices and 850 unemployed young people. The funding will come from MERSETA (the manufacturing, engineering and related skills education training authority).

Schools Although KwaZulu-Natal is home to some of South Africa’s oldest and most expensive private schools, the backlog of its infrastructure at the poorer public schools is still formidable. The provincial government is spending heavily on providing classrooms, toilets and other facilities in rural areas. There are 1.9-million children who benefit from the national school feeding programme in KwaZulu-Natal. A total of 4 747 schools are classified as no-fee schools, accounting for about 80% of the province’s public schools. There are approximately 26 000 public schools in South Africa. There were 44% more private schools in South Africa in 2010 than there were in 2001 (South African Institute of Race Relations). Some of the new private schools are small and modest, but the sector is also attracting investors. JSE-listed ADvTECH has two Crawford Colleges in the province. Curro Holdings is also listed on the JSE and is rapidly growing its portfolio of schools. This is partly due to acquisitions such as that of Curro Embury College in Morningside. There are other Curro schools at Hillcrest and Mount Richmore (North Coast). A funding agreement with Old Mutual Investment Group SA (OMIGSA) and the Public Investment Corporation (PIC) will see Curro roll out 11 low-fee independent schools in the years to 2019. These will be called Meridian Independent Schools.

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

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Tourism Two international airlines have announced new routes connecting to Durban.

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waZulu-Natal has a very varied tourism offering – mountains, heritage, beaches, conventions, sports – and the tourists who enjoy visiting the province are almost as varied. In 2015, a new venture between the provincial department of tourism, local tour operator Akilanga and a Polish charter company called Rainbow Tours saw 2 500 Polish tourists visit KwaZulu-Natal. Qatar Airways launched their third route to South Africa with a Durban-Doha offering, close followed by the announcement of a Turkish Airlines Durban-Istanbul flight. This is likely to further diversify and increase the number of tourists visiting KwaZulu-Natal. Arrivals at King Shaka International Airport between January and September 2015 were at 1 717 721, compared to 1 648 285 in 2014. National figures for 2013 put the total number of tourists visiting South Africa at 9.6-million (out of 14.8-million visitors). Increases were recorded from these regions: the UK, SA's biggest market (1%, a figure which probably reflects a degree of saturation); Europe (7%); rest of Africa (4%) including an increase of 15.4% among Nigerians; North America (6.7%); Australasia (4%); Asia (34%) and Central and South America (37%). The numbers for the last two regions clearly show that the focus on China and Brazil that has been part of SA's country marketing is paying off. According to StatsSA, tourism's direct contribution to GDP accounted for 3% of GDP in 2012, an amount of R93.3-billion. There were 617 287 direct jobs in that sector, 4.6% of employment in the country. 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 for January-October 2015 show that 1.65-million motorists passed through the Mooi River toll plaza, but a very important arrival method for tourists in the high-end of the market is by cruise liner. After many delays, tenders have been called for the construction of a terminal that will be dedicated to receiving cruise liners. The Port of Durban envisages a 32 000m² area that will cater for two ships and at least 5 000 passengers. The number of cruise-ship passengers attracted to Durban grew from 42 000 in 2004/05 to 157 000 in 2010/11. South Africa attracts 0.5% of the world’s cruise-ship market, which comprises about 15.4-million passengers annually. One of the tender competitors will be MSC Cruises, which itself dealt with about 90 000 cruise passengers through Durban harbour in 2014. In the summer months the MSC Sinfonia and MSC Opera sail from Durban to Mozambique, in addition to other destinations in KWAZULU-NATAL BUSINESS 2016/17

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SECTOR HIGHLIGHTS Hotel occupancy rose to 63.8% in 2015. • The Loeries Creative Week will boost the regional economy for the next three years. • Tenders have been invited to build a cruise ship terminal in Durban. the Indian Ocean. It is expected that Transnet will also bid for the right to build the much-needed terminal.

Hotels Research by Tourism KwaZuluNatal (TKZN) shows that the coastal province consistently has the best hotel occupancies in the country. Hotel occupancy in the province rose to 63.8% in 2015 compared to 60.7% in 2014. Tsogo Sun runs 14 hotels in KwaZulu-Natal, five of which are Garden Courts. Six hotels are located 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. With


OVERVIEW 734 rooms, the Southern Sun Elangeni & Maharani will boast the most accommodation in the province. It has nine restaurants and bars. Protea Hotel Hospitality Group announced in 2011 that the group had set up a fund to buy distressed hotels. Protea already has more hotel beds in South Africa than any other group and by 2012 had spent about R1.5billion on upgrades to hotels in its portfolio. Protea Hotels has 18 properties in the province, with seven in Durban including the Protea Hotel Edward. Hilton Durban opened a new venue in October 2015, the 'Big Easy Wine Bar and Grill', a collaboration with world-renowned golfer Ernie Els, and previously best known off the golf course for his wine range. 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 Quays on Timeball Square offers luxury apartments and six penthouses in a canal setting with views of the Atlantic Ocean. The iconic 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 ranging from Tala Game Reserve in its lodge portfolio to five Signature Hotels. Gooderson Leisure has a varied portfolio, including the Tropicana and Beach hotels in Durban, lodges in Hluhluwe and the Drakensberg Gardens Golf & Spa Resort. Sibaya Casino and Entertainment Kingdom, a Sun International property, is north of Durban between Umdloti and Umhlanga. The casinos in Newcastle (Century City), Empangeni (Tusk Umfolozi Casino) and Pietermaritzburg (Golden Horse Casino) are run by Century Casinos Newcastle, Peermont Global and Akani Msunduzi Management respectively. Durban’s Golden Mile is the site of the province’s biggest casino complex: the Sun Coast Casino and Entertainment World (Tsogo Sun) has 1 330 slot machines, 12 restaurants and eight cinemas.

Assets KwaZulu-Natal has great beaches along the entire coastline, from the popular South Coast, through the perfect surfing spots in Durban to the wetlands of the north. The iSimangaliso Wetland and the uKhahlamba Drakensberg Park are World Heritage Sites. The province has six Ramsar wetlands and more than 100 nature reserves controlled by the provincial authority. The province is also famous for its luxurious private game reserves and lodges that offer unique viewings of black rhino. The rolling hills that Alan Paton made famous in Cry, the Beloved Country contrast with the coastal plains, the sheer walls of basalt that make up the Drakensberg in the east and the volcanic Lebombo mountain range in the north. The warm current allows for year-round swimming. Along the coast the climate ranges from mild tropical in the south to fully tropical in the north. It can get very humid in the north while the interior regions are cooler. The high-lying interior parts get snow in winter. Zulu heritage is celebrated on King Shaka Day in September with an impressive ceremony and draws many tourists. Important sites include the eMakhosini Heritage Park, Ulundi and Nongoma, where the current Zulu king resides. The Freedom Route celebrates great characters who fought for freedom from apartheid, including Chief Albert Luthuli, Mahatma Gandhi, Dr John Dube and Alan Paton. The Battlefields Route caters to thousands of local and foreign enthusiasts and providing much-needed employment in the north of the province. Indian temples in Durban and on the North Coast provide superb architecture to admire while there are several sites, particularly

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OVERVIEW around Pietermaritzburg, where Mahatma Gandhi’s stay in South Africa can be traced. Many tourism operators cooperate with one another, for example, in the N3 Gateway Tourism Association, which is a transprovincial initiative. With more than 2 500 associations, routes and co-operatives participating, the Gateway programme includes groups such as the Midlands Meander Association, the Grasslands Tourism Association, Mooi River Tourism and the uMngeni Footprint Route.

Events and conferences When travel agents hold conferences in your city, you know you are on the right track. The 2015 conference of the Association of Southern African Travel Agents was held in May at the Southern Sun Elangeni and the Maharani with about 200 delegates. Another big win for Durban was the decision of the Loeries Creative Week (the advertising industry's awards festival) to sign to visit Durban for three years. More than 5 000 delegates are expected to attend the awards ceremonies, exhibitions and seminars. A 2011 survey of the economic impact of the awards estimated something in the region of R100-million for accommodation, restaurants and transport. Durban is the home of the Tourism Indaba, one of the industry's most important annual tourism exhibitions and the continent's biggest tourism marketing event. In 2015, a total of 20 African countries were represented and a new app allowed buyers and sellers to plan their programmes well in advance. As a result, there was a 69% increase in meetings held over the previous year, rising to an amazing figure of 29 058. Durban's Inkosi Albert Luthuli International Convention Centre Complex (ICC) regularly wins awards and, together with the Durban Exhibition Centre and the Durban Arena, the ICC helps to position Durban and KwaZulu-Natal as a leader in the Meetings, Incentives,

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Conferences and Exhibitions (Mice) sector. The ICC has been World Travel Awards' 'Africa’s Leading Meetings and Conference Centre”'14 times in the last 15 years and has been rated amongst the World’s Top 15 convention centres by AIPC (International Association of Convention Centres). There are 3 600 hotel rooms within a 10-minute walk of the ICC, while the airport is 30 minutes away. In the 2015 financial year, the ICC generated R157-million, an increase of R5.3-million and a 20% growth in number of events hosted. Net profit increased by 32%. The ICC is a body within the eThekwini Municipality, and despite the difficult general economic climate it made a significant economic contribution to the city and the province, adding R4.6-billion to the national Gross Domestic Product (GDP) – a 47% increase – and R4.5-billion to the province’s Gross Geographic Product (GGP). It has also created 10 874 direct and indirect jobs. Most of KwaZulu-Natal's hotels and lodges have conference facilities, ranging from bushveld lodges catering for 20 people to hotels such as the 440-bedroom Southern Sun Elangeni on Durban beachfront, which can host up to 600 delegates in 10 venues. There's a buzz around Durban’s conference, meetings and events market as Tsogo Sun hotels are making serious inroads into becoming the preferred choice among local organisers. Recognising the functionality and versatility benefits of these properties, organisers are enticed by


OVERVIEW the “one-stop solution” equipped to meet their individual needs. Tsogo Sun hotels offer excellent facilities, good infrastructure and comfortable accommodation at competitive rates. The hotels are a preferred choice as they offer distinct advantages including a wide range of well-equipped venues, world-class infrastructure and exclusively tailored services. 'Tsogo Sun hotels have an enviable reputation of hosting corporate and business events that stretches back decades. From high-profile gatherings to company functions and group incentives, our Durban hotels have the right ingredients to make such occasions a success,' said Mike Jackson, Director of Operations, Tsogo Sun Hotels, KZN. He added that the wide range of hotels and price points from Garden Court to the flagship Southern Sun Elangeni and Maharani, to the luxury Beverly Hills made it easy to see why Tsogo Sun’s hotels are fast becoming leading contenders in the conference and incentive market. Overlooking the city of Durban is a very intimate venue, the Audacia Manor, which is geared to smaller gatherings. This African Pride hotel has a small conference room and a book-lined boardroom with a mahogany table around which 16 delegates can be seated. Localities outside of Durban offer a great variety of experiences: the Royal Showgrounds in Pietermaritzburg hosts up to 50 functions per month; the Cathedral Peak Hotel has 94 hotel rooms to support its conference venue in a dramatic, mountainous setting;

Tala Private Game Reserve offers wedding guests or delegates the chance to relax in 5 000 acres of natural beauty; the Imbizo Conference Centre north of Durban can accommodate 1 500 conference-goers, while the South Coast from Amanzimtoti to Port Edward venues cater to a wide variety of tastes.

Sporting events KwaZulu-Natal has developed a healthy reputation as a venue for sporting events, although in some cases the events are so extreme that non-sporting people sometimes wonder just how healthy they are. Whatever the case may be, there is no doubt that sports races and tournaments make for a healthier provincial economy. Several KwaZulu-Natal sporting events have become internationally famous and now play a crucial role in boosting local, regional and national economies. The Durban July is the country's premier horse-racing gala event. Some 55 000 spectators spend about R85million before and during the event. The Dusi Canoe Marathon brings an estimated R30-million into the region’s economy region through money spent on accommodation, refreshments and the like. By moving the event to January, the organisers have successfully extended the Christmas season for local tourism and hospitality operators. The Comrades Marathon is another ultra-event that has a huge following locally as well as internationally. The Sharks rugby franchise has a fanatical following and soccer matches regularly draw big crowds to the area just north of Durban's CBD, one that is increasingly becoming a sporting mecca. With several stadia located here, including the superb new Moses Mabhida Stadium, this area is set to become the focus of future bids to host events such as the Commonwealth Games.

ONLINE RESOURCES Amafa/Heritage KwaZulu-Natal: www.emakhosini.co.za Ezemvelo KZN Wildlife: www.kznwildlife.com Hotel Investment Conference Africa: www.hica.co.za Inkosi Albert Luthuli ICC Complex: www.icc.co.za KwaZulu-Natal Tourism Authority: www.zulu.org.za KZN Gambling Board: www.kzngambling.co.za KZN Literary Tourism: www.literarytourism.co.za N3 Gateway Tourism Association: www.N3gateway.com

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South African National Government An overview of South Africa’s national government departments. President

Department of Arts and Culture

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 323 8246 Website: www.thepresidency.gov.za Website: www.economic.gov.za

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza Bopape streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3000 Fax: +27 12 440 4485 Website: www.dac.gov.za

Deputy President

Department of Basic Education

Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 323 8246 Website: www.thepresidency.gov.za

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X9034, 8000 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Website: www.education.gov.za

Minister in the Presidency

Department of Communications

Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 300 5795 Website: www.thepresidency.gov.za

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival Street), Hatfield, Pretoria 0001 Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 473 0000 | Fax: +27 12 462 1646 Website: www.doc.gov.za

Ministry in the Presidency responsible for Women (Minister of Women in the Presidency)

Department of Cooperative Governance and Traditional Affairs

Address: East Wing, Union Buildings, Pretoria 0001 Postal address: Private Bag X931, Pretoria 0001 Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473 Website: www.women.gov.za

Address: 87 Hamilton Street, Arcadia, Pretoria 0083 Postal address: Private Bag X802, Pretoria 0001 Tel: +27 12 334 0705 | Fax: +27 12 326 4478 Website: www.cogta.gov.za

Minister for Public Service & Administration

Department of Correctional Services

Address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 Website: www.dcs.gov.za

Address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 Website: www.dcs.gov.za

Dept of Agriculture, Forestry and Fisheries

Department of Economic Development

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria Tel: +27 12 319 7319 | Fax: +27 12 319 6681 Website: www.daff.gov.za

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & Esselen streets, Sunnyside, Pretoria 0001 Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 | Fax: +27 12 394 0255 Website: www.economic.gov.za

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LISTING Department of Defence and Military Veterans

Department of Human Settlements Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001 Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Website: www.dhs.gov.za

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001 Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 | F ax: +27 12 347 0118 Website: www.dod.mil.za Department of Energy

Department of International Relations and Cooperation

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001 Postal address: Private Bag X96, Pretoria 0001 Tel: +27 12 406 8000 Fax: +27 12 319 6681 Website: www.energy.gov.za

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria 0001 Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 1000 Fax: +27 12 329 1000 Website: www.dirco.gov.za

Department of Environmental Affairs Address: Environment House, 473 Steve Biko and Soutpansberg Road, Arcadia, 0083 Postal address: Private Bag X447, Pretoria 0001 Tel: +27 12 310 3537 | Fax: +27 086 593 6526 Website: www.environment.gov.za

Department of Justice and Correctional Services Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard Streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 | Fax: +27 12 406 4680 Website: www.doj.gov.za

Department of Finance Address: 40 WF Nkomo Street, Old Reserve Bank Building, 2nd Floor, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 323 8911 | Fax: +27 12 323 3262 Website: www.treasury.gov.za

Department of Labour Address: 215 Laboria House, cnr Francis Baard and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X499, Pretoria 0001 Tel: +27 12 392 9620 | Fax: +27 12 320 1942 Website: www.labour.gov.za

Department of Health Address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria 0001 Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165 Website: www.doh.gov.za

Department of Mineral Resources Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007 Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3000 Fax: +27 86 624 5509 Website: www.dmr.gov.za

Department of Higher Education and Training Address: 123 Francis Baard Street, Pretoria 0001 Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 | Fax: +27 12 323 5618 Website: www.dhet.gov.za

Department of Police Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001 Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2812 Website: www.saps.gov.za

Department of Home Affairs Address: 909 Arcadia Street, Hatfield 0083 Postal address: Private Bag X114, Pretoria 0001 Tel: +27 12 432 6648 | Fax: +27 12 432 6675 Website: www.dha.gov.za

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LISTING Department of Public Enterprises

Department of Social Development

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001 Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1000 Fax: +27 12 431 1039 Website: www.dpe.gov.za

Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001 Postal address: Private Bag X904, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 086 715 0829 Website: www.dsd.gov.za

Department of Public Service and Administration

Department of State Security

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria Postal address: Private Bag X884, Pretoria 0001 Tel: +27 12 336 1700 Fax: +27 12 336 1809 Website: www.dpsa.gov.za

Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001 Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700 | Fax: +27 12 367 0749 Website: www.ssa.gov.za

Department of Public Works Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street Postal address: Private Bag X65, Pretoria 0001 Tel: +27 12 406 21978 Fax: +27 086 276 8757 Website: www.publicworks.gov.za

Department of Sport and Recreation South Africa Physical address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street, Pretoria 0001 Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 7196 / 086 644 9583 Website: www.srsa.gov.za

Department of Rural Development and Land Reform

Department of Tourism

Address: 184 Old Building, cnr Jeff Masemola and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 9300 Fax: +27 12 323 3306 Website: www.ruraldevelopment.gov.za

Physical address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001 Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 444 6780 Fax: +27 12 444 7027 Website: www.tourism.gov.za

Department of Science and Technology

Department of Trade and Industry

Physical address: DST Building, Building No 53, CSIR South Gate Entrance, Meiring Naude Road, Brummeria, Pretoria 0001 Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6300 Fax: +27 12 349 1041/8 Website: www.dst.gov.za

Physical address: The dti, 77 Meintjie Street, Block A, Floor 3, Sunnyside, Pretoria 0001 Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 | Fax: +27 12 394 0337 Website: www.thedti.gov.za

Department of Small Business Development Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside, Pretoria 0001 Postal address: Private Bag X84, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 1006 Website: www.dsbd.gov.za KWAZULU-NATAL BUSINESS 2016/17

Department of Transport Physical address: Forum Building, 159 Struben Street, Room 4111, Pretoria 0001 Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3131 | Fax: +27 12 328 3194 Website: www.transport.gov.za

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LISTING Telecommunications and Postal Services Physical address: Iparioli Office Park, 399 Jan Shoba Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8000 Fax: +27 12 427 8016 Website: www.dtps.gov.za Department of Water and Sanitation Physical address: Sedibang Building, 185 Frances Baard Street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 8850 Website: www.dwa.gov.za

National coat of arms

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance.

Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth.

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LISTING

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

Office of the Premier

Tel: +27 33 264 2500 Fax: +27 331 310 5416 Website: www.kzndedt.gov.za

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

Education MEC: NP Nkonyeni Anton Lembede Building, 247 Burger Street Tel: +27 33 392 1004 Fax: +27 33 392 1203 Website: www.kzneducation.gov.za

Agriculture and Rural Development MEC: Mr Cyril Xaba Cedara College, Cedara Road Tel: +27 33 343 8240 | Fax: +27 33 343 8255 Website: www.kzndard.gov.za

Health

Arts and Culture

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

MEC: Ntombikayise Sibhidla-Saphetla 222 Jabu Ndlovu Street Tel: +27 33 264 3400 | Fax: +27 33 394 2237 Website: www.kzndac.gov.za

Human Settlements and Public Works

Cooperative Governance and Traditional Affairs

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

MEC: Nomsa Dube-Ncube 330 Langalibele Street Tel: +27 33 264 2500 | Fax: +27 33 264 6672 Website: www.kzncogta.gov.za

Social Development

Economic Development, Tourism and Land Affairs

MEC: Weziwe Gcotyelwa Thusi 208 Hoosen Haffejee Street Tel: +27 33 341 9600 Fax: +27 33 341 9616 Website: www.kznsocdev.gov.za

MEC: Mike Mabuyakhulu 270 Jabu Ndlovu Street KWAZULU-NATAL BUSINESS 2016/17

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LISTING Transport, Community, Safety and Liaison

Provincial Treasury

MEC: Thembinkosi Willies Mchunu 179 Jabu Ndlovu Tel: +27 33 341 9300 | Fax: +27 33 342 6345 Website: www.kzntransport.gov.za

MEC for Finance: Belinda Francis Scott Treasury House, 145 Chief Albert Luthuli Street, Tel: +27 33 846 6800 Fax: +27 33 846 6801 Website: www.kzntreasury.gov.za

KwaZulu-Natal Legislature

Provincial Planning Commission

Speaker: Hon L Johnson 239 Langalibalele Street Tel: +27 33 355 7600 | Fax: +27 33 355 7011 / 7099 Website: www.kznlegislature.gov.za

Chairperson: Prof Prof Bonke Dumisa Moses Mabhida Building, 300 Langalibalele Street Tel: +27 31 341 4765 Website: www.kznppc.gov.za

KwaZulu-Natal Local Government A guide to KwaZulu-Natal's local government.

eThekwini Metropolitan Municipality

iLembe District Municipality

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

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

Amajuba District Municipality

KwaDukuza Municipality Tel: +27 32 437 5000 Fax: +27 32 437 5098

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

Mandeni (eNdondakusuka) Municipality Tel: +27 32 456 8200 Fax: +27 32 456 2504

Dannhauser Municipality Tel: +27 34 621 2666 | Fax: +27 34 621 3114

Maphumulo Municipality

eMadlageni (Utrecht) Municipality

Tel: +27 32 481 4500 Fax: +27 32 481 2053

Tel: +27 34 331 3041 | Fax: +27 34 331 4312

Ndwedwe Municipality

Newcastle Municipality

Tel: +27 32 532 5000 Fax: +27 32 532 5031/2

Tel: +27 34 328 7600 | Fax: +27 34 312 1570

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LISTING Mkhambathini Municipality

Harry Gwala District Municipality

Tel: +27 31 785 9300 | Fax: +27 31 785 2121 40 Main Street, Ixopo 3276 Tel: +27 39 834 8700 | Fax: +27 39 834 1701 Website: www.harrygwaladm.gov.za

Mpofana Municipality

Greater Kokstad Municipality

Msunduzi Municipality

Tel: +27 39 797 6600 | Fax: +27 39 727 5501

Tel: +27 33 392 3000 | Fax: +27 33 345 2397

Kwa Sani Municipality

Richmond Municipality

Tel: +27 33 702 1060 | Fax: +27 33 702 1148

Tel: +27 33 212 2155 | Fax: +27 33 212 2102

uBuhlebezwe Municipality

uMngeni Muncipality

Tel: +27 39 834 7700 | Fax: +27 39 834 1168

Tel: +27 33 239 9200 | Fax: +27 33 330 4183

uMzimkhulu Municipality

uMshwathi Municipality

Tel: +27 39 259 5000 | Fax: +27 39 259 0223

Tel: +27 33 815 2249 | Fax: +27 33 502 0286

Ugu District Municipality

uMkhanyakude District Municipality

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

Stand 13433, Kingfisher Road, Mkuze 3965 Tel: +27 35 573 8600 | Fax: +27 35 573 1094

Hibiscus Coast Muncipality

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

Tel: +27 33 263 1221 | Fax: +27 33 263 1127

Hlabisa Municipality

Tel: +27 39 688 2000 | Fax: +27 39 682 0327

Jozini Municipality

Umdoni Municipality

Tel: +27 35 572 1292 | Fax: +27 35 572 1266

Tel: +27 39 978 4313 | Fax: +27 39 976 2020

Mtubatuba Municipality

uMuziwabantu Muncipality

Tel: +27 35 550 0069 | Fax: +27 35 550 0060

Tel: +27 39 433 1205 | Fax: +27 39 433 1208

The Big Five False Bay Municipality

Umzumbe Municipality

Tel: +27 35 562 0040 | Fax: +27 35 562 0988

Tel: +27 39 972 0005 | Fax: +27 39 972 0099

uMhlabuyalingana Muncipality

Vulamehlo Municipality

Tel: +27 35 592 0680 | Fax: +27 35 592 0672

Tel: +27 39 974 0553 | Fax: +27 39 974 0432

uMzinyathi District Municipality

uMgungundlovu District Municipality 242 Longmarket Street, Pietermaritzburg 3201 Tel: +27 33 897 6700 | Fax: +27 33 342 5502 Website: www.umdm.gov.za

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

Impendle Muncipality

Endumeni Municipality

Tel: +27 33 996 6000 | Fax: +27 33 996 0852

Tel: +27 34 212 2121 | Fax: +27 34 212 3856

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LISTING Nquthu Municipality

uMhlathuze Municipality

Tel: +27 34 271 6100 | Fax: +27 34 271 6111

Tel: +27 35 907 5100 | Fax: +27 35 907 5444

Msinga Municipality

uMlalazi Muncipality

Tel: +27 33 493 0761 | Fax: +27 33 493 0766

Tel: +27 35 473 3300 | Fax: +27 35 474 4733

uMvoti Municipality

Zululand District Municipality

Tel: +27 33 413 9100 | Fax: +27 33 417 1393 B400 Gagane Street, Ulundi 3838 Tel: +27 35 874 5500 | Fax: +27 35 874 5589 Website: www.zululand.org.za

uThukela District Municipality Physical address: 33 Forbes Street, Ladysmith 3370 Tel: +27 36 638 5100 / 2400 Fax: +27 36 637 5608 / 635 5501 Website: www.uthukeladm.co.za

Abaqulusi Municipality Tel: +27 34 982 2133 | Fax: +27 34 980 9637

eDumbe Municipality

Emnambithi/Ladysmith Municipality

Tel: +27 34 995 1650 | Fax: +27 34 995 1192

Tel: +27 36 637 2231 | Fax: +27 36 631 1400

Nongoma Municipality

Imbabazane Municipality

Tel: +27 35 831 7500 | Fax: +27 35 831 3152

Tel: +27 36 353 0681 | Fax: +27 36 353 6661

Ulundi Municipality

Indaka Municipality

Tel: +27 35 874 5100 | Fax: +27 35 870 1164

Tel: +27 34 261 1000 | Fax: +27 34 261 2035

uPhongola Municipality

Okhahlamba Municipality

Tel: +27 34 413 1223 | Fax: +27 34 413 1706 MOZAMBIQUE

Tel: +27 36 448 8000 | Fax: +27 36 448 1986

MUNICIPALITIES IN KWAZULU-NATAL

Umtshezi Municipality

SWAZILAND

Tel: +27 36 342 7800 | Fax: +27 36 352 5829

Mpumalanga Umhlabuyalingana

uThungulu District Municipality

Jozini

uPhongolo

eDumbe eMadlageni

Uthungulu House, Kruger Rand Rd, Richards Bay 3900

Newcastle

uMkhanyakude

Abaqulusi

Amajuba

Free State

Dannhauser

KZDMA27 Ulundi

Endumeni

Tel: +27 35 799 2500 Fax: +27 35 789 1641 Website: www.uthungulu.org.za

Emnambithi/ Ladysmith

KZDMA23

uMzinyathi

Mtubatuba Mthonjaneni Nkandla

Msinga uMtshezi uMvoti

LESOTHO

Mpofana

KZDMA22

Ingwe

Sisonke

Tel: +27 35 450 2082 | Fax: +27 35 450 2056

Maphumulo

uMshwathi

uMngeni

iLembe

uMgungundlovu Impendle

KZDMA43 Kwa Sani

Mthonjaneni Municipality

Mbonambi

uMhlathuze

uMlalazi

Imbabazane KZDMA23

Tel: +27 35 580 1421 | Fax: +27 35 580 1141

Ntambanana

uThungulu

Ukhahlamba

uMfolozi Municipality

KZDMA27

Hlabisa

Nqutu

Indaka

uThukela

The Big Five False Bay

Nongoma

Zululand

KwaDukuza Mandeni

Maphumulo

Msunduzi Richmond Mkhambathini

eThekwini Metropolitan Municipality

INDIAN OCEAN

uBuhlebezwe

N

Vulamehlo

uMzimkulu Greater Kokstad

Ugu

Umdoni

Umzumbe uMuziwabantu

Nkandla Municipality

Ezinqoleni Metropolitan/District Municipality Boundary

Hibiscus Coast

Tel: +27 35 833 2000 | Fax: +27 35 833 0920

Eastern Cape

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Local Municipality Boundary

District Municipality Local Municipality

Amajuba uMlalazi

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PROFILE

Msunduzi Municipality: City of Pietermaritzburg The Msunduzi Municipality incorporates Pietermaritzburg, the capital city of KwaZulu-Natal.

Main resources/ attractions

Geography and location Pietermaritzburg is the capital city of the province of KwaZulu-Natal, and situated strategically on the N3 highway, 80km inland from Durban – the biggest port in Africa. The N3 corridor is the busiest development corridor in South Africa, linking Durban through Pietermaritzburg to Johannesburg and the rest of Africa. The Municipality is also the economic hub for the central part of the Province.

Main industries/business sectors As well as being the seat of the Provincial Parliament, home to all government departments and the Provincial High Court, Msunduzi also has a diverse economy with a robust manufacturing sector including aluminium products, automotive components, leatherware and shoes, furniture, timber, as well as one of the largest fresh produce markets in the country and a thriving agricultural sector. It is the main commercial hub for the KwaZulu-Natal Midlands. KWAZULU-NATAL BUSINESS 2016/17

Enjoying a warm, subtropical climate. Pietermaritzburg is a green and attractive city with numerous parks, pleasant residential suburbs and is within easy reach of both beaches and the Drakensberg mountains. It is renowned for its excellent public and private schools and has campuses for two universities (the University of KwaZulu-Natal and the Durban University of Technology), ensuring the availability of a highly skilled workforce. It has excellent road and rail networks, and a recently expanded airport with five flights daily to Johannesburg. Having numerous restaurants, museums, shopping centres and social amenities, it also hosts major events such as the Comrades Marathon, Dusi Canoe Marathon, Edendale and Mandela Marathons, the Midmar Mile swim, the Royal Agricultural Show, and it is also known as the Bike City of Africa hosting international BMX and mountain-biking championships.

Key development objectives and strategies The Municipality aims to promote investment that will take advantage of its strategic location on the N3 development corridor and close to the proposed freight dry port halfway between Durban and Pietermaritzburg in Cato Ridge. Its key sector plans are around aluminium beneficiation, the ex-

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PROFILE Albert Falls Amble and Boston-Bulwer Beat, where recreational activities, arts and craft outlets and fine dining restaurants abound. It has a beautiful National Botanical Garden, parks, and numerous entertainment and sporting events throughout the year, including Cars in the Park and Art in the Park, along with the nearby Hilton Arts Festival. With its Victorian architecture, township tours and rich heritage of South African Indian and Zulu culture it exemplifies a warm, friendly, diverse yet integrated South African city.

pansion of Pietermaritzburg Airport (and an exciting airport technology hub which will drive innovation), the rejuvenation of Imbali and Edendale town centres, and a new leather hub in Plessislaer which is being driven by the KwaZulu-Natal Provincial Department of Economic Development. Massive new commercial, residential and light industrial centres are being planned alongside the N3 around Ashburton to the east. Further commercial developments alongside the N3 are planned around the new Brookside Mall and polocrosse fields in the central area. An Integrated Rapid Passenger Transport Network is at an advanced planning and early implementation stage which, in addition to the Pietermaritzburg Urban Renewal Programme of beautification, will revitalise the city centre and connect economic zones. A new municipal office has been established to fast-track the sale of industrial and commercial land, together with the re-establishment of the Investment Facilitation Committee, which will provide a “one-stop-shop” for investors and developers.

Tourism Msunduzi has something for everyone. For those interested in our complex history, major tourist attractions include several museums, the Tatham Art Gallery and historical buildings, including links with former icons President Nelson Mandela and Mahatma Gandhi. It is a hub for several tourist routes including the Freedom Route, Midlands Meander,

Key facts and figures District municipality (for local municipalities): Umgungundlovu District Municipality Population: 670 000 Area covered: 650km2 Key infrastructure Main roads: Excellent national, provincial and local road network Railways: On the main line between Durban and Johannesburg Airports: Pietermaritzburg Airport, with five daily flights between the city and OR Tambo Airport, Gauteng Ports / harbours: 45 minutes drive from the Port of Durban Contact details Key personnel

Mayor: Councillor Chris Ndlela Municipal Manager: Mr Mxolisi Nkosi Key contact people

Mr Sipho Zimu – Process Manager: Investment Attraction, Retention and Expansion Dr Ray Ngcobo – Deputy Municipal Manager: Development Services Tel: +27 33 392 2465 | Fax: +27 33 392 2726 Email: Sipho.Zimu@msunduzi.gov.za Website: www.msunduzi.gov.za Physical address: Professor Nyembezi Building, 341 Church Street, Pietermaritzburg 3200 Postal address: PO Box 85, Pietermaritzburg 3200

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KWAZULU-NATAL BUSINESS 2016/17


INDEX

INDEX Durban Chamber of Commerce and Industry .................................................................................................................52 Durban Investment Promotion (DIP) ...................................................................................................................................... 1 Emnambithi Ladysmith Municipality .................................................................................................................................... 7 Hulamin ..............................................................................................................................................................................................82 Industrial Development Corporation (IDC) ......................................................................................................................40 KZN Growth Fund .......................................................................................................................................................................... 3 Masisizane Fund ..............................................................................................................................................................................48 Mondi Group South Africa ................................................................................................................................................. 66-68 Msunduzi Municipality ..............................................................................................................................................................118 Nedbank ....................................................................................................................................................................................... 43-47 Port of Durban .......................................................................................................................................................................... 28-33 Port of Richards Bay ................................................................................................................................................................34-39 Richards Bay Minerals ...................................................................................................................................................................76 Standard Bank ...............................................................................................................................................................94-101, IBC Trade & Investment KwaZulu-Natal (TIKZN) .................................................................................................... 16-27, OBC Transnet National Ports Authority (TNPA) ................................................................................................................... 28-39 Tsogo Sun ............................................................................................................................................................................................ 5

KWAZULU-NATAL BUSINESS 2016/17

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KwaZulu-Natal Business 2016/17  

KwaZulu-Natal Business 2016/17 is the eighth edition of this highly successful publication that has since its launch in 2007 established its...

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