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2017/18 EDITION

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

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

I

nvest Durban (previously DIPA) is an entity of the eThekwini Municipality, recommended by the Durban City Council and organised private business as the most appropriate vehicle to promote and facilitate new investment into the Durban metropolitan area. Invest Durban’s primary objective is to accelerate sustainable investment in Durban for the benefit of all through the: • Proactive investment promotion and marketing of Durban Metro as a premium investment destination • Proac tive communication and marketing of the City’s large investment projects and core strategies

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

Invest Durban offers FREE: • Investment Information and Facilitation Services • Immigration, Import and Legal Services • Business Establishment and Incentives • Investor Administration Services


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

Quality logistics systems include: • Port operation facilities • Rail network – cargo and passenger • International airport with air cargo facilities • Extensive road network with national and regional linkages • Oil/petroleum pipeline to Gauteng and Free State Provinces • Gas pipeline emanating from Sasol, in Mpumalanga province • Metro-wide fibre-optic systems. Durban provides a number of new opportunity areas for investors, both large and small. Investment opportunities may be categorised into the following fields: • Agri-processing • Auto and allied manufacturing • ICT, BPO and shared service centres • Medical devices, health services and pharmaceutical manufacturing • Logistics and maritime All of the above driven by world-class innovation and holistic sustainability

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


#DurbanMustRise


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

DCCI Vision:

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

DCCI Mission:

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

Services offered by the Durban Chamber of Commerce and Industry 1. Enterprise Development Beneficiary Status 2. Fully equipped Conference Centre 3. CIPC services 4. Durban Chamber Procurement Portal 5. Certificates of Origin 6. ATA Carnet 7. Carnet de Commerce 8. Credit Reference Checks 9. First line HR/IR advice and support 10. Seminars and Workshops 11. Policy and Advocacy Department providing reliable and relevant policy perspective 12. Employee Health, Wellness, Safety Advice and Support


CONTENTS

CONTENTS KwaZulu-Natal Business 2017/18 Edition.

Introduction Foreword10 KwaZulu-Natal’s unique guide to business and investment.

Special features Regional overview

12

KwaZulu-Natal is wooing investors in a wide range of sectors, from liquid gas and titanium dioxide to pharmaceuticals and pipe manufacturing. South African economy at a glance



18

Insight into the performance of the South African economy is provided through these graphical representations of key statistics. Investing in Durban

22

Strong policy frameworks and priority projects are attracting investors to Africa’s biggest port city. Richards Bay

29

Richards Bay holds great promise for growth.

KWAZULU-NATAL BUSINESS 2017/18

4


UIF SAVING JOBS

THROUGH SOCIALLY RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as a guideline to government departments and state entities on how they can play a role in government wide efforts of creating decent work, reducing unemployment and poverty. The Unemployment Insurance Fund is among the leading state entities in the implementation of the provisions of the NDP to address the slow economic growth, unemployment and poverty in South Africa. The UIF social investment mandate ensures that, additional to earning good financial returns, investments must be supportive of long term economic, social and adhere to sustainable environmental outcomes. The investments must also yield a good social return for the country. These investments have sustained 6 860 jobs of which 3 024 are permanent, 3 836 are temporary/seasonal and 195 are new jobs created during the financial year ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY The UIF investments are contributing to the energy requirements of South Africa and the investments in the renewable energy sector provides a total capacity of 192 megawatt of electricity of which 117 megawatt is solar energy and 27 megawatt is wind generated electricity. The De Aar project is a shining example of the UIF energy investments and this project produces 90 megawatt of electricity and was completed in April 2016. The solar plant in the area generates enough electricity to power 15 000 houses. Another mainstay project is the Phakwe Group ran projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY The UIF investments in this regard are undertaken under the banner of the UIF Agri-Fund in partnership with Futuregrowth and Day Breaker Poultry Project. The UIF Agri-Fund has invested in 4 farms situated in Mable Hall in Limpopo. One of the farms is a cash crop farm spanning 450 hectares. The farm in the last financial year produced 235 hectares of white maize, and cotton was planted in an area covering 28 hectares. A further three farms are located in the Saron area in the Western Cape. In this project a total of 178 hectares has been used to plant grapes, 37 hectares has been used to pant citrus fruit. Furthermore, there is potential to plant an additional 92 hectares of grapes. The Daybreaker Poultry project operates in Gauteng, Limpopo and Mpumalanga and the combined projects have facilities to grow 1.6 million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES The UIF concluded two investments in this regard that include a BEE hospital manager, Busamed to build a private hospital in Modderfontein and Fund Manager Razorite Heatlhcare that focus on the provision of affordable heathcare facilities that include rehabilitation and sub-acute centres. The Modderfontein hospital is a 220 hospital bed with subacute facilities. This hospital is under construction. While the RH Fund Manager has concluded seven investments that include: • Busamed with four hospital facilities • HealthMed with two facilities

INVESTMENTS IN EDUCATION UIF has invested in three investments that play a role to unlock access to education. The investments were concluded with Eduloan – an organisation that provides financial support to tertiary students and South Point and Educor organisations that provide student accommodation. By March 2016, Eduloan had disbursed about R446 986.64 benefiting 34 047 students, whiles South Point provided about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT The UIF has concluded two investments with the aim of supporting small and medium enterprises. In this regard the PIC on behalf of UIF has concluded investment deals with Musa Capital and TOSACO. The investments will support more than 250 SMMEs across various sectors inclusive of agriculture and affordable housing. Musa Capital for example has a supply chain of over 250 SMME’s that have facilitated the creation of 2 500 jobs. TOSACO investments is planning to advance capital to young black entrepreneurs who aspire to own and manage Total Filling stations around the country.

For more information: Call: 0800 843 843 or visit: www.labour.gov.za


CONTENTS Growing the maritime economy



40

Building a Smart Port City at Durban.

Economic sectors Mining60 Miners and processors are investing in new mines and plants. Agriculture62 Heavy rains have returned to boost agricultural production. Sugar64 A British company has bought Illovo. Manufacturing65 Big new plants are opening in KwaZulu-Natal. Forestry and paper

72

Companies are investing heavily in processing capacity. Agriprocessing 

74

Food and beverages are produced on a large scale. Automotive75 Durban hosts the first NAACAM Show. Oil and gas

76

Richards Bay is set to become an energy hub. Water78 New dams and water pipelines are under construction. Energy80 Alternative energy sources are being rolled out.

KWAZULU-NATAL BUSINESS 2017/18

6


CONTENTS Tourism82 KwaZulu-Natal is targeting conferences as a priority sector. Education and training

84

KwaZulu-Natal has 30% of South Africa’s schoolchildren. Banking and financial services

86

Three new banks are set to join the sector. Development finance and SMME support

88

Small businesses have multiple financing options.

Government South Africanl Government

92

A guide toSouth Africa’s national government departments. KwaZulu-Natal Provincial Government

96

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

97

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

References Sector contents

58

ZIMBABWE

Limpopo

Index100

NAMIBIA North West

Maps

Free State Northern Cape

KwaZulu-Natal regional map.

17

8

LESOTHO

Eastern Cape Western Cape

KWAZULU-NATAL BUSINESS 2017/18

Mpumalanga Gauteng SWAZILAND KwaZulu-

Natal KWAZULUNATAL

MOZAMBIQUE

BOTSWANA


CREDITS

KwaZulu-Natal Business

CREDITS Publisher: Chris Whales Publishing director:

A unique business and investment guide.

Robert Arendse

waZulu-Natal Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2008, established itself as the premier business and investment guide to the KwaZulu-Natal Province. The 2017/18 edition includes special features on the Richards Bay area and its increasingly important Industrial Development Zone, the investment appeal of Durban and the growing maritime economy. Up-to-date overviews on the province’s economic sectors provide unique insights. Global Africa Network Media (www.gan.co.za), the publisher of KwaZulu-Natal Business, specialises in business-to-business print and electronic publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.

Editor: John Young

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

Managing director: Clive During

ABOUT THE COVER

Natalie Koopman

K

Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter Production: Lizel Olivier Ad sales: Sydwell Adonis, Nigel Williams, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Siyawamkela Sthunda and Jeremy Petersen

Administration & accounts: Charlene Steynberg and

The cover photograph was shot by Brad Hunter (www.bradhuntermedia.co.za) from the top of 88 Joe Slovo Street in Durban. The building was designed by German-born American architect Helmut Jahn and is a landmark and external focus for the CBD of Durban. It has also contributed towards the City Council’s rejuvenation plans for the “new-look” Durban.

Distribution & circulation manager: Edward MacDonald Printing: FA Print

DISTRIBUTION

PUBLISHED BY

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

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 ISSN 1993-0127

COPYRIGHT | KwaZulu-Natal Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Pictures supplied by: Wikimedia Commons, BHP Billiton, Pexels, Ngage Media, Berea Mail, Roy Reed, Khanyisa Projects, The Misty Blue Group, South African Tourism, Paul Chinn, KZN Provincial Legislature, Durban Chamber of Commerece and Industry and iStock.

KWAZULU-NATAL BUSINESS 2017/18

10

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.


Alfred Duma Local Municipality “Service Delivery Beyond Expectation” An Attractive Investment Destination

Central Location

The Alfred Duma Local Municipality is known for its history in the promotion of industrial development since the early 19th century. It is home to the largest tyre and appliances manufacturing companies in the world, Sumitomo Rubber Industries and Defy. To further promote industrial activity in the town, the Municipality adopted an Incentives Policy for new and expanding businesses, and a Business Retention and Expansion Programme. Alfred Duma Local Municipality offers several industrial areas, such as Acaciavale and between the towns Danskraal and Colenso, with the largest being the Ithala Industrial Estate, a short distance from the CBD. Factories, industrial sites and skilled labour are readily available since the town is home to three TVET Colleges serving the Northern KZN Region. The industrial stand sizes vary from 2000 to 8000 square metres. Subdivisions and stand sizes can be negotiated to meet your particular requirements. Assistance is also provided with rezoning and EIA applications. Alfred Duma Local Municipality has a well-established commercial and social infrastructure. Its residential areas are situated away from the commercial and industrial centres to ensure quiet and pleasant living conditions. It has an array of top schools and higher education institutions which includes TVET Colleges and nursing schools. All these sites are easily accessible by road and rail. The town has a mini airport which is designed to serve goods and small passenger planes. Alfred Duma Local Municipality is a major agricultural zone for dry crops and livestock, and has abundant water resources with the large UThukela River running through the town.

Alfred Duma Local Municipality is situated halfway between South Africa’s key domestic markets in Gauteng, Bloemfontein and the major export harbour in Durban. The N3 and the N11 National Roads provide easy access to neighbouring towns, provinces and countries.

Mayor: Alfred Duma Local Municipality Cllr MV Madlala

Tourism Attractions Alfred Duma Local Municipality rests on the open flood plains of the Klip River in the foothills of the mighty Drakensberg. It forms a natural gateway to many mountain resorts and the Okhahlamba Drakensberg World Heritage Site, set in some of the most scenic areas in the country. Alfred Duma Local Municipality 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 of the multi Grammy Award winning Isicathamiya Group, Ladysmith Black Mambazo. It has several attractions like the Long Tom Cannon in front of the majestic and historical Town Hall, the Soofie Mosque, Battlefields Route and Siege Museum. It also hosts major events like the Ladysmith Show, the Arthur Creswell Marathon, Battlefields Festival and many more.

CONTACT DETAILS Ladysmith Office: Mr T B Xaba • Tel: 036 637 2104/2090 • Cell: 082 317 2857 Email: tbxaba@alfredduma.gov.za • Website: www.ladysmith.co.za To Johannesburg N 2

sb

ken

Dra R 74

SPIOENKOP DAM

Bergville Winterton

e

stl

ca

ew

N To

erg

Ladysmith N 2

Alfred Duma R 74

TUGELA RIVER To Durban


A REGIONAL OVERVIEW OF

KWAZULU-NATAL

KwaZulu-Natal is wooing investors in a wide range of sectors, from liquid gas and titanium dioxide to pharmaceuticals and pipe manufacturing. By John Young

I

n November 2017, the KwaZulu-Natal Investment Conference will outline to a wide range of potential investors all the benefits that the coastal province, the secondbiggest contributor to South Africa’s gross domestic product (GDP), has to offer. The province’s existing infrastructure, good soils and fine weather provide a solid base for


SPECIAL FEATURE

future growth. KwaZulu-Natal already has significant capacity in heavy and light manufacturing, agriprocessing and mineral beneficiation, all of which is supported by South Africa’s two busiest ports (Richards Bay and Durban), the country’s busiest highway (the N3), a modern international airport (King Shaka International) and pipelines that carry liquids of all types to and from the economic stronghold of Gauteng province in the interior. Toyota and Bell Equipment play a big role in the automotive sector while the Engen Oil Refinery is a strategic asset. Sugar, tourism and forestry and paper are the other important sectors driving growth and employment in KwaZulu-Natal. A number of bodies support investment into the province. Chief among these is Trade & Investment KwaZulu-Natal (TIKZN), which offers expert advice and support in every aspect that potential investors might need. Support is also offered to existing investors who might want to expand their business or start exporting products. A Provincial One-Stop-Shop is being established to facilitate getting all the paperwork done as fast as possible for new investors. Bodies such as the South African Revenue Service (SARS) and Home Affairs will be involved in this process. Three entities that work hard to attract investment in their own right are Richards Bay Industrial Development Zone (RBIDZ), Dube TradePort and eThekwini Municipality. The latter body’s KWAZULU-NATAL BUSINESS 2017/18

14

dedicated unit is called Durban Investment Promotion (DIP), which in turn works with bodies such as the Durban Chamber of Commerce and Industry and TIKZN. In his 2016 State of the Province address, Premier Mchunu announced these investments in the RBIDZ: titanium plant (R4.5-billion); biomass plant (R2-billion); pipe manufacturing plant (R300million); paint manufacturing (R16-million); logistics services (R20-million). A number of big projects have been undertaken in recent years in the province, or have been approved for implementation in the near future. These so-called “catalytic projects” are big enough to stimulate other sectors of the economy and to contribute significantly to regional GDP. Perhaps the biggest recent announcement was the decision by the national Department of Energy (DoE) that one of the country’s first two gas-to-power plants to be constructed under the Independent Power Producer Programme, is to be allocated to Richards Bay. A private partner will invest in and run the plant which will be located within the RBIDZ. This is not only big news in terms of the amount of money being invested and the number of jobs that will be created, it has the potential to create a whole string of downstream businesses supplying gas, servicing gas and fired by gas.


SPECIAL FEATURE The variety of sectors into which these catalytic projects are taking place shows that KwaZuluNatal has a diverse economy. Three examples illustrate this: • Colenso Smelter Park Project (R39-billion in first phase, power generation) • Point Waterfront Development (luxury apartments, hospitality, offices, retail) • Cipla at Dube TradePort (R1.3-billion, bio-similar pharmaceutical manufacturing plant).

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 ports at Durban and Richards Bay and to explore for gas and oil in the Indian Ocean. New sectors Ship-building and ship repairs is an existing industry but it is currently not very big. If oil rigs were Two new sectors are catching the eye of investors to start visiting the KZN coastline on a regular basis, in KwaZulu-Natal. One relates to the ocean, and the this industry would grow exponentially. other is energy generation. The Oceans Economy is one of the focus areas KwaZulu-Natal has a long coastline that stretches that has been chosen by national government to from Port Shepstone in the south to Kosi Bay Nature be part of Operation Phakisa, a focused, goal-driven Reserve in the north. The province’s contact with attempt to jump-start a specific economic sector. the sea has brought obvious benefits: fishing, fine Overall, Phakisa intends creating a million jobs by beaches enjoyed by millions of tourists, and two 2033 and injecting R177-billion into national GDP. great ports – the ports of Durban and Richards The decision to build a cruise-ship terminal at Bay. These ports export vast quantities of minerals the Port of Durban is a good example of the kind (mostly through Richards Bay) and manufactured of decision that is nicely in line with an “Oceans goods (Durban) and serve as an important con- Economy” approach. duit for imports of all sorts. The Richards Bay Coal The KwaZulu-Natal Maritime Institute is part of Terminal exports massive quantities of coal while the a restructured Sharks Board offering training programmes with national ports and logistics operaPort of Durban is the busiest port in Africa. However, planners want to massively increase tor, Transnet. Since 2012, 800 students have been the economic benefits that the ocean can bring. studying maritime-related courses. The other big potential growth area in KwaZuluAn Oceans Economy Review Workshop has come up with a range of subsectors that can help grow Natal is energy. Several licences have been granted for offshore exploration and the hope exists that something will be found, a hope partly based on the close vicinity of the vast gas fields off the coast of Mozambique. If energy does not come from the sea through offshore drilling for oil or gas, there is plenty of potential on land. So far KwaZuluNatal has trailed the rest of South Africa when it comes to the innovative and exciting REIPPPP. Tens of billions of rands and hundreds

15

KWAZULU-NATAL BUSINESS 2017/18


SPECIAL FEATURE 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 projects in the Northern Cape and wind farms in the Eastern Cape. 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 biomass 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. 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.

Geography The mixed topography of the province allows for varied agriculture, animal husbandry and horticulture. The lowland area along the Indian Ocean coastline

KWAZULU-NATAL BUSINESS 2017/18

16

is made up of subtropical thickets and Afromontane Forest. High humidity is experienced, especially in the far north and this is a summer rainfall area. The centrally located Midlands is on a grassland plateau among rolling hills. Temperatures generally get colder in the far west and northern reaches of the province. The mountainous area in the west – the Drakensberg – comprises solid walls of basalt and is the source of the region’s many strongly running rivers. Regular and heavy winter snowfalls support tourist enterprises. The Lubombo mountains in the north are granite formations that run in parallel.

Regions KwaZulu-Natal has 10 district municipalities, the most of any province in South Africa. 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 becomes another port, if the money can be found to dig it up and let the sea in. Durban’s conference facilities are well utilised but many opportunities still exist in chemicals and industrial chemicals, food and


SPECIAL FEATURE Eastern region Although most of this area is very rural, Richards Bay is one of the country’s industrial hotspots because of its coal terminal and port and aluminium smelters. The Richards Bay Industrial Development Western region Also known as the Midlands, this is a fertile agricultural Zone (RBIDZ) is a major economic node in itself: region, producing sugar cane, fruit, animal products, the 62-hectare first phase is almost fully subscribed forestry and dairy products. Pietermaritzburg is the with the investment value of the two phases (some provincial capital and home to a major aluminium having already been secured for phase two) at R6.8producer along with several manufacturing con- billion. Mining is an important sector in this region. cerns, including textiles, furniture, leather goods The other major urban centre is Empangeni which and food. The city has good transport links along has several educational institutions. King Shaka the N3 national highway, excellent schools and a International Airport and associated Dube TradePort lively arts scene. The Midlands Meander is a popular is kick-starting massive new investment in the area. tourist destination. The Ilembe District Municipality is particularly active in seeking out new investors. Bethal beverages, infrastructure development and tourism. Further south, plans are in place to upgrade Margate’s airport and Port Shepstone’s beachfront.

MOZAMBIQUE

N17

N17

SWAZILAND

KWAZULU-NATAL PROVINCE Ermelo Standerton

Mpumalanga

Piet Retief

N11

N2

Volksrust

Paulpietersburg

Vrede

Newcastle

Pongola

R33

Utrecht

R69

R34

Vryheid

Free State N3

R68

uLundi

R33

Ladysmith N3

R74

eMpangeni

Kranskop

RA LESOTHO KE NSB ERG

Estcourt R33

Stanger

Howick

Ballito

N2

Eastern Cape

uMhlanga

N3

Pinetown R56

iXopo

Harding

Darnall

N2

Tongaat

Underberg

Kokstad

Richards Bay

Gingindlovu

Greytown

Mooi River

PIETERMARITZBURG

D

St Lucia

Mtubatuba

Melmoth

Colenso

Winterton

N2

R65

N11

R74

Hluhluwe

Hlabisa

Glencoe

Harrismith N5

Bergville

Nongoma

R34

Dundee

Mkuze

R66

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 country’s power stations’ demand for the fuel. Game farms, trout fishing and hiking are part of an attractive package for tourists, and Zululand is a popular destination for cultural experiences. The whole region is rich in AngloBoer War history.

DURBAN aManzimtoti

uMzinto

uMkomaas

N2

INDIAN OCEAN

N

Hibberdene uMtentweni Port Shepstone Margate Southbroom Port Edward

Motorway

Main Road Railway

17

KWAZULU-NATAL BUSINESS 2017/18


SPECIAL FEATURE

South African economy at a glance Insight into the performance of the South African economy is provided through these graphical representations of key statistics. ZIMBABWE

MOZAMBIQUE

BOTSWANA

Limpopo 0.9% (7.1%)

NAMIBIA

Gauteng Mpumalanga 2.7% 2.1% (7.5%) (34.3%) SWAZI-

North West -3.6% (6.5%)

LAND

Free State 1.8% (5%) Northern Cape 2.8% (2.1%)

LESOTHO

KwaZuluNatal 2.3% (16.1%)

Eastern Cape 1.0% (7.6%) Western Cape 2.0% (13.6%)

SA GDP: Percentage of growth per province (2014) and percentage contribution to national GDP (figures in brackets). SOURCE: STATS SA WWW.STATSSA.GOV.ZA

PROVINCE

CAPITAL

POPULATION (2015)

AREA

GRP BILLION RAND

6 916 200

168 966km2

R289.9

2 817 900

129 825km2

R189.1

David Makhura

13 200 300

18 178km2

R1 305.6

Pietermaritzburg Willies Mchunu

10 919 100

94 361km2

Eastern Cape

Bhisho

Free State

Bloemfontein

Gauteng

Johannesburg

KwaZuluNatal

PREMIER

Phumulo Masualle Elias Sekgobelo "Ace" Magashule

R610.1

Stanley Mathabatha David Mabuza Supra Mahumapelo

5 726 800

125 754km

4 283 900

76 495km2

R284.2

3 707 000

104 882km2

R249.5

R271.5

Limpopo

Polokwane

Mpumalanga

Mbombela

North West

Mahikeng

Northern Cape

Kimberley

Sylvia Lucas

1 185 600

372 889km2

R79.9

Western Cape

Cape Town

Helen Zille

6 200 100

129 462km

R518.1

Snapshot of South Africa’s provinces SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA

KWAZULU-NATAL BUSINESS 2017/18

18

2

²


SPECIAL FEATURE

How South Africa’s economy performed in 2015. * * PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA

Agriculture

2.5

2.8

0.4

2.1

3.8

4.3

6.0

7.5

3.5

29.4

24.9

3.3

33.6

1.9

13.3

26.7

0.2

0.3

Manufacturing

2.5

11.5

13.5

4.4

15.8

8.5

2.1

12.2

11.8

Electricity

2.8

5.4

2.4

1.4

2.5

3.1

3.0

1.4

2.0

Construction

2.5

3.3

4.3

2.6

3.0

2.0

1.6

2.1

4.3

Wholesale

10.8

10.3

14.2

9.3

15.5

12.3

9.9

14.7

17.0

Transport

5.4

5.8

8.3

6.1

11.9

7.1

7.8

7.9

9.1

Finances

14.0

10.9

22.8

11.1

16.5

14.2

11.6

18.6

26.6

Personal Services

3.8

4.3

3.6

7.0

5.8

10.2

8.1

9.1

5.1

Government Services

16.0

10.5

17.0

12.1

13.3

14.7

12.8

22.0

10.2

Taxes

10.3

10.3

10.1

10.3

10.0

10.3

10.2

10.2

10.0

Mining

Gross Domestic Product by province, percentage contribution. SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1

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KWAZULU-NATAL BUSINESS 2017/18


SPECIAL FEATURE 7% 6% 5% 4% 3% 2% 1% 0

2011 2012 2013 2014 2015 2016 PPI (percentages in order from 2011 to 2016) CPI (percentages in order from 2011 to 2016) denotes data for September 2016 rather than the average for the full year.

**

Inflation rate 2011 to 2016 SOURCE: WWW.STATSSA.GOV.ZA

Mineral products 20.41% Precious metals 18.24% Vehicles, aircraft and vessels 12.57% Products iron and steel 12.02% Machinery 9.69% Chemicals 6.47% Vegetables (including fruit, nuts and cereals) 4.96% Prepared foodstuff (including beverages) 4.29% Plastic and rubber 2.11% Wood pulp and paper 1.92%

South Africa’s top 10 export commodity categories: 2015 SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA

Machinery 25.02% Mineral products 16.12% Vehicles, aircraft and vessels 10.4% Chemicals 10.37% Equipment components 7.3% Products iron and steel 5.54% Plastic and rubber 4.13% Textiles 3.72% Prepared foodstuff (including beverages) 2.93% Photographic, medical equipment 2.71%

South Africa’s top 10 import commodity categories: 2015 SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA

KWAZULU-NATAL BUSINESS 2017/18

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SPECIAL FEATURE Million Rand R600 000

R400 000

R200 000

R0

Africa 2010

Europe 2011

America 2012

Asia 2013

Other unclassified

Oceania 2014

2015

2016

Exports year on year world zone comparison (Including BLNS) 2010 to 2016

PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA

Million Rand R600 000

R400 000

R200 000

R0

Africa 2010

Europe 2011

America 2012

Asia 2013

Oceania 2014

2015

Other unclassified 2016

Imports year on year world zone comparison (Including BLNS) 2010 to 2016

PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA

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KWAZULU-NATAL BUSINESS 2017/18


Investing in Durban Strong policy frameworks and priority projects are attracting investors to Africa’s biggest port city.

 T

 he business case for Durban is a strong one. The continent’s busiest port serves a city with excellent infrastructure and a varied and sophisticated economy while excellent schools, superb beaches, a warm climate and well-organised sports, leisure and cultural programmes contribute to making the eastcoast city a destination of choice for investors. A modern fibre optic network enables good telecommunications and the Dube TradePort at King Shaka International Airport supports imports and exports. The University of KwaZulu-Natal is a well-established institution and several campuses of Technical and Vocational Education and Training (TVET) colleges also contribute to a skilled potential workforce. The city is also a leading tourism destination and the Inkosi Albert Luthuli International Convention Centre Complex in the heart of Durban is at the core of a strong Meetings, Incentives, Conferences and Events (MICE) sector. The manufacturing sector is varied, ranging from an oil refinery and a large automotive manufacturing plant to chemicals and textiles. Durban Investment Promotion (DIP) is a collaboraKWAZULU-NATAL BUSINESS 2017/18

tion between the private sector and the eThekwini Municipality which offers assistance to potential investors and actively promotes the city. It works together with organisations such as the Durban Chamber of Commerce and Industry and TIKZN (Trade and Investment KZN). The thrust of Durban’s pitch to attract investors can be put into two broad categories: • Catalytic Projects, which have the potential to shift the socio-economic landscape and trigger a series of investments across several sectors • Key Sectors, which receive the focus of planners in a variety of ways, including the creation of Special Purpose Vehicles (SPVs), clusters and the development of value chains to promote new ventures and investment opportunities.

Catalytic projects Durban is working on a number of large-scale projects that have the potential to make a regional

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Get in touch with Sareeka I E: Brijlals@durbanchamber.co.za I T: 031 335 1000


SPECIAL FEATURE impact. The location of these projects is vital. They must either be on national trade routes or they should help to break down the old apartheid living/working dynamics. Projects are selected for their scale in terms of job creation, investment size and potential revenue creation. Ideally, the projects should include a combination of functions (retail, commercial and housing, for example) and they should fit in with the UNO’s Sustainable Development Goals. The Point Waterfront Development fits very well into the category of a catalytic project. Some projections put the potential investment value at R40-billion and the number of permanent jobs to be created at 6 750. It is an ambitious plan that is already linking the city’s beach promenade and the harbour. It offers a property use mix of office space, retail shops, residential dwellings and leisure options. The 55ha site has already seen significant investment. A proposed cruise terminal in the harbour backing on to the Point will dovetail well with the new atmosphere of the precinct. Other major projects include: • the Warwick Junction transport interchange which has already received road upgrades but could be an even greater enabler of trade • the Centrum Government Precinct which would formalise the relationship between buildings such as the International Convention Centre (and extensions) and a related hotel, the library, council chambers and the redevelopment of Gugu Dlamini Park • the Cornubia integrated human settlement development north of Durban, on 1 300ha, a partnership between Tongaat Hulett Development, the human settlement departments at national and provincial level and eThekwini municipality • Dube TradePort, the multi-modal facility at King Shaka International Airport.

and expertise from commerce and industry, labour organisations, government and academia. Research aims to find out how best to grow particular economic sectors, and in-depth discussions are held about how to develop and grow value chains. The mineral and agricultural wealth of KwaZulu-Natal is mostly consumed or exported in its raw state – much more could be done to add wealth through processing. The three broad focus categories are manufacturing, services and the green economy. Some of these initiatives play to the existing strengths of the regional economy, some seek to exploit newer avenues as in the emphasis on the environment and a growing interest in the Oceans Economy. Under manufacturing, the following clusters or programmes are active: • KZN Clothing and Textile Cluster (KZN CTC) • Durban Automotive Cluster (DAC) • Durban Chemical Cluster (DCC) • eThekwini Maritime Cluster (EMC) • KZN Furniture Incubator • Agro-processing (Edamame Development Programme). In services the focus areas are Business Processing Outsourcing (BPO) and ICT. The SmartXchange is an SPV to develop skills in the ICT sector and to help small businesses to get started, 50 of which are already using the service. The creation of a more skilled workforce and a larger number of ICT companies will create a smarter province which will make it more attractive to investors. Green economy: • a variety of projects linking tourism, environmental clean-ups and alien eradication, recycling and job creation • eThekwini Waste Materials Recovery Industry Development Cluster (USE-IT). There are various other broader programmes which have their own goals but there will be positive spin-offs for the targeted sectors. These schemes include the drive to increase local content, boosting metal fabrication across sectors, the promotion of black industrialists, promoting exports and the over-arching eThekwini Industrial Development Policy Action Plan.

Key sectors Durban already has a very diverse economic landscape, within which there are some large-scale enterprises. Cooperation between the public and private sectors is illustrated by the large number of cluster initiatives which aim to draw to together experience KWAZULU-NATAL BUSINESS 2017/18

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PROFILE

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

Geography and location Msunduszi Municipality is 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 Msunduzi has a diverse economy with a robust manufacturing sector including an aluminium rolling mill and downstream aluminium products, automotive components, leather-ware and shoes, carpets, furniture, forestry and timber, as well as one of the largest fresh produce markets in the country and a thriving agricultural sector. Emerging sectors include business process outsourcing, the private health care sector with two new hospitals under construction, food processing and the creative arts sectors. As the main commercial hub for the KwaZulu-Natal Midlands it serves a population base of approximately one-million in the city and surrounding smaller towns. It has the benefit of being the seat of the Provincial Parliament and the Provincial High Court, which facilitates easy access to all government departments.

It is renowned for its excellent schools and health facilities, and has campuses for two universities plus several colleges, ensuring the availability of a highly skilled workforce. It has excellent road networks and an airport with five flights daily to Johannesburg plus one to Cape Town. 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.

Main resources/attractions

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 implementation

Key development objectives and strategies

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. KWAZULU-NATAL BUSINESS 2017/18

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PROFILE

of an airport precinct plan and an airport technology hub including an innovation centre. The rejuvenation of Imbali and Edendale township centres and a new leather hub in Plessislaer, being driven by the KwaZulu-Natal Provincial Department of Economic Development, will open up further opportunities to the west of the city. Massive new commercial, residential and light industrial centres being planned alongside the N3 to the east will bring the city closer to the planned freight / logistics centre. Further commercial developments alongside the N3 are planned around the new Brookside Mall and polocrosse fields in the central area.

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.

Key facts and figures District municipality: 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, Johannesburg, and one daily flight to Cape Town Ports: 45 minutes drive from the Port of Durban

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. The sale of industrial and commercial land is being driven by a new Land Management Office, and an Investment Facilitation Committee provides a Local Government “one-stop-shop” for investors and developers.

Tourism

Contact details Key personnel Mayor: Councillor Themba Njilo Municipal Manager: Mr Sizwe Hadebe

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, 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

Key contact people Senior Manager: Local Economic Development (acting), Ms Nombuso Hlophe General Manager: Development Services, Dr Ray Ngcobo Tel: +27 33 392 2600 | Fax: +27 33 392 2726 Email: nombuso.hlophe@msunduzi.gov.za Physical address: Professor Nyembezi Building, 341 Church Street, Pietermaritzburg 3200 Postal address: PO Box 85, Pietermaritzburg 3200 Website: www.msunduzi.gov.za

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INTERVIEW

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

Cllr Themba Njilo

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

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

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

KWAZULU-NATAL BUSINESS 2017/18

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Richards Bay holds great promise for growth in multiple sectors

R

Port of opportunity

ichards Bay plays a vital role in South Africa’s economy as a port, a mining destination and as a growing centre of large-scale industrial development, but it also a hub for tourism and leisure serving the Zululand tourism region, with the St Lucia wetlands and the Elephant Coast just a short distance away to the north. The City of uMhlathuze encompasses the two main centres of Richards Bay and Empangeni as well as a number of smaller settlements and traditional councils. With a population of about 350 000, the area has good communications (the Port of Richards Bay, the N2 highway and an airport), the headquarters of the University of Zululand and several campuses of the uMfolozi TVET College. Richards Bay has its own tourism attractions, which include the Tuzi Gazi Waterfront and game fishing. The hills of Zululand host many cultural villages where traditional culture can be experienced, and where the sites can be seen of old battles between Zulu, Boer and Brit. Wonderful safaris are on offer at Thanda, Thula Thula, Hluhluwe-Imfolozi, Ithala, Opathe and the Zululand Rhino Reserve. The Umfolozi Hotel Convention Resort will host the Pan-African Health Tourism Congress, the first of its kind, in June 2017. The congress will investigate how this growing sector can develop even further with sessions on investment, destinations and education.

The Port of Richards Bay has been expanding its capacity at a fast rate. In dealing with 80-million tons of cargo annually (60% of South Africa’s seaborne cargo), it is not only the leading port in terms of volume, it is also the largest port in South Africa. A strong selling point for the port is its deepwater infrastructure, encompassing a maximum permissible draught of 17.5 metres. Together with excellent terminal infrastructure and professional management, this allows for quick turnarounds. The Port has six cargo handling terminals and covers 2 174ha of land. The Richards Bay Coal Terminal (RBCT) has the capacity to export 91-million tons of coal in a year. In November 2016 a new monthly record of over 8 000Mt was set. If that rate of export was extended over a year, 97Mt/a could be handled through the RBCT. The Port of Richards Bay is also associated with the Richards Bay Industrial Development Zone (RBIDZ). Recent developments at RBIDZ have seen an investment in an oil and gas facility and it is hoped that the ocean will yield finds of gas to provide cheap feedstock. Mozambique has very strong reserves of offshore gas. The decision by the national Department of Energy to allocate to Richards Bay a 2 000MW power

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KWAZULU-NATAL BUSINESS 2017/18


SPECIAL FEATURE plant to be fired by Liquefied Natural Gas (LNG) is a potential game-changer. Investors still have to be found, but the potential spin-offs of such a plant are obvious, and would make the RBIDZ even more attractive to processors of minerals and manufacturers of every sort. The RBIDZ has secured or is working on an investment pipeline in sectors that include titanium processing, paint manufacturing, machinery and equipment assembling (for example, pipes), solar water heater manufacturing and services such as logistics. Construction on the R3-billion titanium pigment plant will begin in 2018. A number of incentives were helpful in persuading the investors (Nyanza Light Metals and Avertana) to choose RBIDZ, including accelerated depreciation, an investment allowance and a tax allowance. Excellent rail infrastructure linking the port to the mining areas of Mpumalanga and the proximity of the plant of phosphoric acid producer Foskor also contributed to the positive investment decision. The project will create about 550 permanent jobs and between 800 and 1 200 temporary jobs during the construction phase. The RBIDZ has been working for some time on positioning itself to take advantage of the opportunities in the Oceans Economy. RBIDZ sees itself getting involved in ship and rig repair, boat building and other opportunities such as aquaculture.

KWAZULU-NATAL BUSINESS 2017/18

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

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Make UNIZULU your University of choice The University of Zululand (UNIZULU) prides itself in having produced academic excellence since its inception in 1960. The University has produced leaders in government, community development, education, science, law, commerce and industry. UNIZULU offers a variety of degree and diploma programmes across its Science and Agriculture; Commerce, Administration and Law; Humanities and Social Sciences and Education faculties. All programmes offered at the University’s KwaDlangezwa and Richards Bay campuses are internationally recognised and students have access to state-of-the-art academic and sports and recreational facilities. Through its International Linkages Office (ILO), UNIZULU students can also benefit from intercontinental collaborative projects, partnerships, scholarships, exchange programmes and experiental learning programmes.

RESTRUCTURED FOR RELEVANCE

Reasons to Study @UNIZULU

• It is the only comprehensive university north of the uThukela River • It aspires to be a leading comprehensive university providing quality education • It has the best Science Centre in Africa • It undertakes research relevant to local communities • It is responsive to the developmental needs of local communities • It recognises academic excellence through scholarships • It is internationally recognised UNIZULU also recognises academic excellence through scholarships to deserving students.

Furthermore, financial aid is also available to qualifying students. Want career advice? Call us! Faculty of Commerce, Administration and Law: (035) 902 6172 Faculty of Arts: (035) 902 6087 Faculty of Science and Agriculture: (035) 902 6282 Faculty of Education: (035) 902 6348 KwaDlangezwa Campus: (035) 902 6051 Richards Bay Campus: (035) 902 6923

Admissions contact details Tel: (+27) 035 902 6030 Fax: (+27) 086 631 7922 Central Applications Office Share Call: 086 086 0226 International Calls: (+27) 031 268 4444 Fax: (+27) 031 268 4422 Website: www.unizulu.ac.za Join our Facebook page and follow us on Twitter


The Richards Bay Industrial Development Zone Company (SOC) Ltd (RBIDZ) The Richards Bay Industrial Development Zone Company (SOC) Ltd (RBIDZ) is a purpose-

The RBIDZ’s objectives:

built and secure industrial estate on the northeastern coast of KwaZulu-Natal, linked to the international deep-water port of Richards Bay. It is tailored for the manufacturing of goods and production of services to boost beneficiation, investment, economic growth and the development of skills and employment. The RBIDZ is deemed to be a Special Economic Zone (SEZ) that aims to encourage international competitiveness through world-class infrastructure as well as tax, VAT and duty-free incentives to qualifying investors. The RBIDZ strategy is geared to provide significant contribution to the country’s economic growth through creation of employment opportunities, upgrading the skills, technology transfer, deepening economic empowerment of historically disadvantaged individuals and broadening of South Africa’s basket of export products.

• •

To attract local and foreign direct investment; To attract advanced foreign production and technology methods in order to gain experience in global manufacturing and production networks; To develop linkages between domestic and zonebased industries; To provide world–class industrial infrastructure.

The RBIDZ’s key focus sectors: • • • • •

Metals Beneficiation (Aluminium, Iron Ore, Titanium) ICT (Techno–parks , Innovation Hubs) Renewable Energy (Solar , Fuel Cells, Biomass) Agro-Processing Marine Industry Development

Incentives provided by RBIDZ to investors • • •

• •

Reduction in corporate income tax from 28% to 15%. VAT exemption for supplies procured in South Africa. Duty-free on imports for production-related raw materials including machinery and assets used in production. Location in a secured and Customs Controlled Area (CCA) World–class industrial infrastructure.

Physical address: 150A Pioneer Road, Captains Walk Building, Tuzi Gazi, Waterfront, Richards Bay, 3900 | Postal address: Private Bag x 1005, Richards Bay 3900


Gateway to World Markets Vision

Company profile

To be the preferred Special Economic Zone for quality investments while delivering value to our stakeholders.

Company Name: Richards Bay Industrial Development Zone SOC Ltd (RBIDZ) Industry sector : Manufacturing Date established: Year – 2002 Key personnel: CEO – Pumi Motsoahae

Mission To utilise the competitive advantage of the Richards Bay area to attract sustainable investments that stimulate economic growth, job creation, beneficiation of resources and the empowerment of people.

Telephone: +27 35 788 0571 | Fax: +27 35 788 0578 Email: info@rbidz.co.za | Website: www.rbidz.co.za


INTERVIEW

An energy hub for the country Pumi Motsoahae, CEO of Richards Bay Industrial Development Zone, explains why the allocation of a gas plant could be a game-changer.

Pumi Motsoahae

Does the RBIDZ have a role in promoting industrialisation? We are at the heart of the government’s programme of industrialisation. At the onset of the democratic dispensation, there were enduring questions on the economic side. Empowerment and enterprise development arose out of that, and then there was a programme to promote industrialisation. What are your focus sectors?

BIOGRAPHY Pumi Motsoahae has extensive experience in ports, shipping, logistics, freight transportation, infrastructure, property acquisition and project management. He began his studies at the National University of Lesotho (BA Administration), gained his Masters in Town and Regional Planning from the University of Natal (1993 – 1994) and studied in the Netherlands for a PostGraduate Diploma in Shipping, Transportation and Logistics. He has also completed an Executive Development Programme (Supply-chain Management) at the Gordon Institute of Business Science.

While investigating the features that would attract investors we looked at metals beneficiation, given the heritage of the area with Richards Bay being the home to the largest aluminium smelter in the Southern Hemisphere (South32) and two heavy sands mines (Rio Tinto and Tronox). We are very strong in the ICT sector. We are spearheading an effort to create a pilot TechnoPark. Hosting the Maritime Academy, together with a focus on ICT, affords the opportunity for innovation and for creative young minds to flourish. The Richards Bay area is surrounded by high-yielding agricultural lands. We can harness that potential through agro-processing. We have set aside a notional 10ha area for a processing plant. Are you looking at renewable energy? Absolutely. We want Richards Bay to be the energy hub of the country. In April 2015, we signed Byromate (Ptd) Ltd to produce 60MW from biomass. We are targeting companies to manufacture solar panels here. There is a phenomenal opportunity to become an energy hub because of our geographic location near offshore gas fields. Last year we were awarded the production of 2 000MW from gas by the IPP office of the Department of Energy. We are quite excited about that. Please tell us about your most recent inward investments? We have quite a healthy investment pipeline. A total of R11.9-billion has been approved since 2013. Recent investments include Nyanza Light Metals (titanium dioxide plant, R4.5-billion), Sizabantu Piping System – SPS Molecor (comprehensive range of high-pressure PVC - O pipes, R300-million) and in other sectors such as logistics (Lovemore Brothers) and paint manufacturer (Prostar Paints).

KWAZULU-NATAL BUSINESS 2017/18

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RICHARDS BAY A unique and inviting retreat just two hours north of Durban, come and experience the relaxed hospitality and convenience of this centrally situated hotel. Indaba Lodge Richards Bay combines the beauty of this warm, lush, subtropical region with the rolling savannah of the many game reserves. Take in the experience of Zulu traditionalism along with tranquil walks on miles of pristine beaches along the TuziGazi Coast.

BOARDROOM

À LA CARTE MENU

DELUXE ROOMS

. 66 en-suite Bedrooms . Fully Airconditioned . . Secure on Site Parking . . Trevallys Restaurant . . Pool & Pool Deck . Cocktail Bar . . Wi-Fi throughout . . 18 Hour Room Service . . Walking distance from Alkantstrand Beach .

WE LOOK FORWARD TO WELCOMING YOU TO YOUR

Home Away from Home INDABA LODGE, RICHARDS BAY І C/O LAUNDER & DAVIDSON LANE, MEERENSEE, RICHARDS BAY

Phone: +27 35 753 1350 | Email: gm@indabarichardsbay.co.za | Website: www.indabarichardsbay.co.za


PROFILE

Moving forward “Coal to the world, growth to the nation”

Richards Bay Coal Terminal (RBCT) is one of the leading coal export terminals in the world. RBCT celebrated its 40th anniversary in 2016. This export coal terminal opened on 1 April 1976 and has grown into an advanced 24-hour Alan Waller, CEO operation that has expanded from an original capacity of 12-million tons per annum to a design capacity of 91-million tons per annum. To date the terminal has moved over two-billion tons of coal.

As such, the terminal has gained a reputation for operating efficiently as well as reliably. The 276-hectare site currently boasts a 2.2km-long quay with six berths and four ship loaders, and has a stockyard capacity of 8.2-million tons. RBCT shares a strong cooperative relationship with South Africa’s national utility Transnet, which provides the railway services linking the coal mines to the port, and the shipping coordination of more than 900 ships per annum.

New Record The November 2016 export tonnage of 8,023Mt broke the previous record of 7,556Mt (2015) by 466 218-tons, demonstrating that the terminal remains RELIABLE. This performance once again reaffirms the RBCT’s capacity to handle 91Mt/a. The new

Positioned at one of the world’s deep-sea ports, RBCT is able to handle large ships and large volumes. KWAZULU-NATAL BUSINESS 2017/18

36


PROFILE monthly record translated to an annualised rate of 97.62Mt/a.

Providing a safe working environment Moving coal in a safe, costeffective and efficient manner, safeguarding the environment and stakeholders is RBCT’s mission. RBCT’s coal logistics activities are conducted within the framework of ISO 14001:2004 and a site-specific Environmental Management Programme. Compliance with ISO 14001:2004 is audited annually and re-certified every three years. Protection of the environment and compliance to environmental legislation remains paramount to RBCT.

Asian and European markets, among others. RBCT throughputs are directly impacted by the upstream logistics infrastructure and continue to fully utilise the terminal’s design capacity. RBCT prides itself on being an efficiently run and reliable export coal terminal.

RBCT people Over 90% of RBCT staff took part in the 2016 Organisational Health Survey. This is a survey aimed at assessing the organisational health as felt, perceived and experienced by all employees. The results improved from 2015 by 5.8%. Over 75% of respondents said they believe strongly in RBCT’s strategic direction, leadership, are motivated to work for RBCT, and are willing to go the extra mile to make RBCT sustainable. RBCT continuously aims to engage, nurture and develop its people to enable the terminal to perform at its best.

RBCT has a strong focus on safety, health and wellbeing of employees as well as on environmental stewardship. On 19 May 2016, RBCT achieved a significant milestone in safety performance, with the landmark of five-million LTI-free man hours.

Excellence Awards RBCT was honoured as the most-awarded business in Richards Bay in the 2016 Zululand Chamber of Commerce and Industry Business Excellence Awards. RBCT not only excelled in four critical areas of the business but also was awarded the Premium Award – for achievements across the supply chain, operations, people and safety.

Community development RBCT continues to plan and participate in a number of social economic development programmes. In year 2016, a total of R3.1-million was invested in the Community Social Investment (CSI) projects. CSI projects are integral to RBCT as they live out our slogan: “Coal to the world, growth to the nation”.

RBCT was the winner in the following categories: • Logistics Business of the Year • Safety Awareness, and • SABCOHA Wellness Award RBCT was a runner-up in the following: • Employer of the Year • Corporate Social Responsibility Award

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

Servicing the mining houses The terminal provides mining houses with a worldclass logistics service to export coal efficiently to

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KAEFER holds a worldwide leading position as provider for plant integrity services and solutions, specialising in Insulation, Access, Surface Protection, Passive Fire Protection, as well as Interior Outfitting. With an annual turnover of around ₏1.5 billion, KAEFER’s business is carried out in its Industry, Marine & Offshore and Construction divisions. Headquartered in Bremen, in the north of Germany, the company has operations in over 40 countries, a current workforce of 28,000 and is led by Peter Edelmann (CEO). Further information can be found on www.kaefer.co.za Tel: 011 974 8123 | Fax: 011 974 4628 | E-mail: info@kaefer.co.za | Website: www.kaefer.co.za


KAEFER Your partner in Industry solutions

While we are a global player, we adopt a very strong local focus and ensure that we make an indelible footprint in all the locations where we are active.

KAEFER team with their 3rd consecutive award for Painting Contractor of the Year at RBCT.

Since its inception in 1918 in Bremen, a small town in Germany, KAEFER has developed into a market leader for plant integrity services and solutions in Industry, Marine & Offshore and Construction. With over 28,000 employees in 40 countries at 2000 locations, we are a true global player – there for you all over the world

in the KZN region as well as Eskom power stations in Mpumalanga and Limpopo, namely Tutuka, Majuba & Matimba and Medupi power station amongst others.

In addition to insulation, we offer access solutions, surface protection, passive fire protection & asbestos removal to the South African and Sub-Saharan market. In everything we do, the client takes centre stage and we take pride in our efficient and innovative approach to overcoming challenges and providing services and solutions.

As part of our commitment to corporate social responsibility, we have completed several community projects in the KZN, Mpumalanga and Limpopo provinces where we operate. We strongly believe that sustainable empowerment is achieved through education; children are the leaders of tomorrow. With this focus on impacting South Africa’s future through education, KAEFER has, among other community projects:

“Our mission is to support our clients’ success by delivering highly professional plant integrity services and solutions for the Industry, Marine & Offshore, and Construction business worldwide.” We also pride ourselves in doing things the KAEFER way. It’s what makes us Recognised, Efficient and Different (RED) and is seen clearly in our consistent safety record, cutting-edge technical expertise and strong ethical values that guide us in everything we do. Furthermore, we’re driven by innovation and by doing things differently. We develop new and tailored solutions that benefit our clients and are frontrunners in digitalisation in our industry. We also assure quality, safety, cost-efficiency and continuous improvement with our substantial in-house expertise and fully integrated services. We have the pleasure to work with and contribute to the success of projects and maintenance contracts for clients such as SAPREF and Richard’s Bay Coal Terminal (RBCT)

“Increasing our competitive strength by being recognised, more efficient and different.”

› ›

Partnered with SAPREF by contributing towards a project that saw the building of two science labs at the Ogwini and Menzi High schools in Umlazi. The project, owned and driven by SAPREF, involved converting a classroom at both schools into a fully equipped science laboratory complete with workbenches, cupboards, Bunsen burners, science kits and chemicals. Other teaching aids were also donated to the schools. Given Phegelelo High School in Lephalale a much needed facelift to their facilities including classroom blocks, toilets and sports grounds.

At KAEFER, we rely on our long history and business continuity which gives us stability and orientation. Our successful track record speaks for itself. And it also serves as a testament to the strength of our strategy, and our vision – to eliminate the energy waste.


FOCUS

Sappi Evolving into the new future.

Sappi Saiccor Mill.

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appi is a global leader in dissolving wood pulp, paper and paper pulp solutions. Sappi Limited (listed and in the Top 40 on the JSE) is headquartered in Johannesburg, South Africa; has over 12 000 employees; manufacturing operations on three continents, in seven countries (seven mills in Europe, three mills in America and four mills in South Africa) and customers in over 150 countries worldwide. Sappi has continued to deliver solid results driven by strong global demand on the back of strategic shifts in business focus. Coupled with strong cash generation and cost management initiatives to reduce variable costs, Sappi is well positioned to achieve its 2020 targets.

2020Vision The company has repositioned itself with the 2020Vision as a diversified woodfibre group targeting US$1-billion in EBITDA through an expanded product portfolio with increased margins, providing enhanced rewards to all its stakeholders. Optimising woodfibre is at the core of this new vision and the group is leveraging its existing KWAZULU-NATAL BUSINESS 2017/18

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strengths to realise opportunities and guide investments. The change in strategy has shifted focus from Graphic paper to Specialised Cellulose (Dissolving pulp) and Speciality Packaging grades.

Sustainability Sustainability is probably the biggest driver of business change around the globe. Sappi’s business relies on natural capital, particularly on woodfibre, land and water. Accordingly, the company focuses closely on responsible management of these resources. Sappi owns or manages hundreds of thousands of hectares of


FOCUS commercial plantations, many of which are based in the KwaZuluNatal area that are constantly repopulated, thereby ensuring that its renewable raw material is inherently sustainable. These forest plantations are actively managed to enhance biodiversity and restrict harmful processes like pests and disease and 100% of our owned and leased plantations are FSC®-certified.

Value adding products KwaZulu-Natal is home to SAPPI SAICCOR MILL which manufactures dissolving wood pulp, a growth area, resulting in investments made to increase capacity and output. Dissolving wood pulp products are used worldwide by converters to create viscose fibre for fashionable clothing and textiles, acetate tow,

pharmaceutical products as well as a wide range of consumer and household products. Unlike synthetic fabrics derived from nonrenewable fossil fuels, cellulosic fabrics made from dissolving wood pulp breathe like natural fibres, have a soft natural feel and offer high levels of absorbency. Our competitive cost position provides Sappi with the platform to build the business further with our key strategic partners, while providing our customers with unmatched quality, consistency and scale. Sappi has also invested in its Speciality Packaging portfolio. SAPPI TUGELA MILL, situated in Mandeni near the Tugela River in KwaZuluNatal, produces pulp for its own consumption, containerboard and lignosulphonate for export. The mill is located near the ports of Richards Bay and Durban, allowing for easy access to global markets. Containerboard is used for agricultural and industrial packaging. Agricultural uses include packaging for citrus and subtropical fruits, frozen foods and long stem flowers; industrial uses include packaging for electronics, household goods, car parts and other heavy-duty applications. The Tugela Mill plays a major role in leading packaging innovation in South Africa that allows customers to develop lightweight boxes which will retain their strength in cold-storage conditions. In doing so we contribute to GDP as the exports from South Africa increase into the world markets. Tugela Mill’s lignosulphonate product is an exciting addition to the product range and we supply to the concrete admixture manufacturing, clay brick/ceramic tile manufacturing and road dust suppression markets. This forms part of Sappi’s new business segment of Biomaterials with an exciting future. KwaZulu-Natal also houses SAPPI STANGER MILL, unique in South Africa in that it uses bagasse as its basic raw material in the manufacture of office paper and tissue wadding. Situated along the North Coast of KwaZulu-Natal, the mill is ideally situated to take advantage of the ready supply of bagasse from the neighbouring Gledhow Sugar Company. The well-known consumer office paper brand Typek, with its distinctive red and white packaging, is manufactured at Stanger. A R100-million strategic investment in sheeting and finishing equipment upgrades has ensured a quality product which is used in offices, schools and other business environments. Paper made from renewable resources remains an important communication and creative medium that will continue to support office workers and children in a fast-paced world. Sappi remains relevant in a changing world set to deliver value-adding products to its customers. Website: www.sappi.com

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KwaZulu-Natal is ideally situated to grow its maritime economy Building a Smart Port City at Durban.

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ational government wants to see the Oceans Economy contribute R29-billion to the national gross domestic product by 2019 and a possible R177-billion by 2033. This is part of the broader National Development Plan (NDP). Important sectors that could contribute to economic growth and increased employment are shipbuilding (something that KwaZulu-Natal already does), the creation of a merchant fleet and the development of South Africa’s small harbours into engines of economic growth and opportunity. The last-named idea is the subject of a major project being driven by the national Department of Public Works. An important element in securing all of this growth will be the creation of reliable marine governance and security. KWAZULU-NATAL BUSINESS 2017/18

Other important sectors that fall under the Oceans Economy are the oil and gas sector (including the servicing of rigs and vessels) and aquaculture. Several fish-farming projects are planned for KwaZulu-Natal (mostly with kob) and a catfish feasibility study is under way.

Advantages With its two important ports, KwaZulu-Natal is ideally located to take advantage of the focus on the maritime economy. Between them, Durban and Richards Bay handle 78% of South Africa’s cargo tonnage. The Dube TradePort located inland expands the capacity of the province to import and export goods.

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SPECIAL FEATURE The principal component of the Dube TradePort is a new international passenger and cargo airport but rail and road links up and down the coast to the two major sea ports make it easy to switch cargo between different modes of transport. Large quantities that arrive by sea can be dispersed in smaller volumes at speed by air. Durban’s annual throughput of containers is about one-million, more than 60% of the country’s total. A priority is to improve loading and unloading times: there is a Back-of-Port Interface Local Area Plan which would turn much of the area south of the port into a logistics section. As part of the national plan that aims to get things done in a targeted way (Operation Phakisa) the Port of Durban is upgrading its dry dock and buying new cranes to speed up operations. There is also an ambitious plan to dig out the old airport south of the city, connect the big hole to the sea and make it a harbour – this would allow Toyota to roll their new vehicles directly from the factory floor to the hold of a ship. The Port of Durban is already home to a variety of maritime companies. South African Shipyards (SAS) is an experienced manufacturer of ship hulls. To improve their competitiveness, three South African shipbuilders (SAS, Damen Shipyards Cape Town and Nautic Africa) have agreed to pool their resources on contracts. Luxury boat-builder Austral Marine has been acquired by Nautic Africa which is known for its military boats. Cooperation pacts like this one might be a good template for the nation’s ports and the rig/boat repair and servicing sector. With the Angolan and Mozambique oil and gas industries growing bigger every day, it is unlikely that one port could cope with demand anyway. The creation of a marine manufacturing and repair cluster at Richards Bay is being considered. Richards Bay, apart from being the country’s main site for the export of coal, is also a registered Industrial Development Zone (IDZ) and consequently attracts a range of investors. The fact that port IDZs are a key plank in national energy policy (which links to the Oceans Economy plan) was emphasised in late 2016 with the allocation by the Department of Energy of two Liquefied Natural

Gas (LNG) plants: one option for private investors to build and operate such a plant is at the Port of Richards Bay in KwaZulu-Natal. The other option has been allocated to the Coega Industrial Development Zone. The Port of Richards Bay has added a new berth on average every second year. A strong selling point for the port is its deep-water infrastructure, encompassing a maximum permissible draught of 17.5 metres and the huge Richards Bay Coal Terminal, which is the country’s primary site of export for coal. The Port of Richards Bay has six cargo-handling terminals and handles 60% of South Africa’s seaborne cargo.

Planning ahead Delegates to the second annual Durban Maritime Summit in 2017 came from a wide variety of sectors including government, academia, shipping, logistics companies, port management, project financing, insurance and international maritime organisations. The topics covered at the first such event in 2016 illustrate how all-encompassing is the relatively new field of the “Oceans Economy”, and what great potential there is for economic growth and job creation through maritime activity. Subjects included: maritime skills development and training, maritime security, maritime enterprise development, making the marine manufacturing and the transport sectors more competitive. The development of the cruise-liner industry is also under the spotlight. The conference is a joint venture between the eThekwini Maritime Cluster and the eThekwini Municipality. The annual conference is intended to position Durban as a Smart Port City in line with the National Government Growth Plan (NGP) 2030. The Maritime School of Excellence trains students for the Sharks Board, Transnet Port Terminals (TPT), Transnet National Ports Authority (TNPA) and for the wider field of maritime and logistics employers. More than 250 students graduated in 2016 as cargo coordinators, marine pilots, tug masters and operators of lifting equipment.

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PROFILE

A global leader in bather protection Keeping bathers safer for five decades.

The KwaZulu-Natal Sharks Board is a public entity (under the auspices of the KwaZulu-Natal Department of Economic Development, Tourism & Environmental Affairs). The KwaZulu-Natal Sharks Board Maritime Centre of Excellence (KZNSB) is a global leader in bather protection against sharks while minimising environmental impact. successfully gained industry recognition resulting in a high percentage of students and graduates attaining work placements.

The KZNSB with over 50 years of experience, is the oldest and only organisation in South Africa dedicated to providing bather protection against sharks. Key supporting activities include educational outreach and marine tourism programmes to create awareness about safe bathing and the marine environment.

Community Engagement

Community Engagement remains central to the “Triple Helix” model and several key projects have been delivered including boatbuilding projects at Enkovukeni and EMdlebeni. Careers expos have been held in almost every district in the province. The Umfolozi River project funded to the tune of R6.1-million demonstrates our leading position of being a community-oriented organisation.

The KZN Sharks Board Maritime Centre of Excellence: • Protects bathers against shark attacks • Conducts biological research on sharks • Educates the public about the activities of the KZN Sharks Board • Informs the public about the role of sharks in the marine environment • Facilitates skills development, enterprise development and community engagement.

Enterprise Development

The Maritime Centre of Excellence’s Enterprise Development’s overall objective is to contribute towards the creation, growth and sustainability of small businesses in the maritime sector thereby creating jobs and resulting in the growth of the maritime sector’s contribution towards the province and country’s GDP.

Triple Helix Model Skills Development

The KZNSB has achieved multiple accreditations. Accreditation is an affirmation of KZNSB’s highest standards of teaching and learning and bestows our graduates with internationally recognised certificates.

CONTACT INFO Address: 1a Herrwood Drive, Umhlanga, KwaZulu-Natal, South Africa Tel: +27 31 566 0400 | Fax: +27 31 566 0493 Website: www.shark.co.za

The student and graduate placement remains a key differentiator between KZNSB and other institutions. The Co-operative Education Unit has KWAZULU-NATAL BUSINESS 2017/18

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INTERVIEW

Keeping bathers safe and promoting skills development for the Oceans Economy The CEO of the KwaZulu-Natal Sharks Board Maritime Centre of Excellence, Mr Mthokozisi Radebe, shares insights into how the role of his organisation is expanding to meet new demands.

Mthokozisi Radebe

BIOGRAPHY

Please tell us about the training function of the KZNSB. The initial focus of Maritime Centre of Excellence was on maritime skills development. The evolution of national priorities such as Operation Phakisa – Oceans Economy has seen its operating model reshaped into the “Triple Helix” of Skills Development, Enterprise Development and Community Engagement. Skills Development centres on the enrolment into maritime occupations, graduate placements and the development of maritime teaching practitioners. The enrolments into maritime have topped 1 500 since 2012. KZNSB has achieved multiple accreditations from the Transport Education Training Authority (TETA), ICDL Foundation, ETDP SETA, and (merSETA) among other training quality assurance bodies. Student and graduate placement remains a key differentiator between MCoE and other institutions. The Co-operative Education

Mthokozisi “Mthoko” Radebe is the current CEO of the KwaZulu-Natal Sharks Board Maritime Centre of Excellence, and the first black person to occupy this office. He oversaw the establishment of the Maritime Centre of Excellence Unit. Mthoko earned an LLB degree from the University of KwaZuluNatal and is currently studying towards a Master’s in Maritime Law. He has served as Director and Partner at Norton Rose Fulbright and been a director, CEO or chairman of several regulatory and business bodies. KWAZULU-NATAL BUSINESS 2017/18

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INTERVIEW Unit within MCoE has achieved successes in number of drumlines deployed increased from 79 gaining industry recognition. The ongoing to 107. The division is currently in discussions in an National Skills Fund (NSF) Graduate and Student effort to reduce the capture of humpback dolphins. Placement Project is one of many placement projects underway. Graduate and Learner place- What are some of the achievements of the ments for students with commercial diving and KZNSB? boatbuilding (both hearing and deaf) stands at an The last shark attack/incident to take place off a protected beach in KZN occurred in 1999. This incident unprecedented 100%. Community Engagement remains central to the was not fatal. There have not been any fatal shark “Triple Helix” model and several key projects have attacks off KZN’s protected beaches since shark been delivered including boatbuilding projects at safety gear was first introduced in the late 1950s. Enkovukeni and Emdlebeni. Career expos have been We reached a significant milestone in August 2014 when we celebrated 50 years of bather protection held in almost every district in the province. In terms of Enterprise Development, a funded in KwaZulu-Natal. project to build 21 boats for use for business purposes has been approved. Furthermore, KZNSB will How important is research in the business be staging an Ocean Festival in September 2017. An of the KZNSB? incubation programme especially for women- and The Research Division is one of the most important divisions as it conducts and facilitates variyouth-owned businesses is being designed. ous scientific activities, which include monitoring, How do you maintain safe swimming while documenting and dissecting all catches, collecting at the same time reducing fatality rates of biological samples, investigating shark attacks and fish and dolphins? investigating new non-lethal alternatives to the curIn October 2015 the KZNSB Operations Division rent shark safety gear. The research results address rolled out the mixed gear concept of reducing the bather protection, recording of catches, reduction number of nets at a protected beach and replacing in environmental impact and biological research. them with drumlines. This has reduced the capture of non-target spe- Please expand on the value of partnercies by up to 50% during the nine years that it has ships to the KZNSB. been in place at 20 beaches. The latest change The Transport Education Training Authority resulted in the total length of netting along the KZN (TETA) funded Freight and Customs Compliance coast being reduced from 23.27km to 22.12km. The learnerships and the training of 30 deaf students that KZNSB is undertaking in collaboration with Whisper Boatbuilding Academy for the Deaf. A community development programme is underway at Enkovukeni in partnership with SA Maritime Safety Authority (SAMSA). There are many other strategic partnerships including the Commercial Diver Programme in partnership with the Sub-tech Group and KwaDukuza Municipality, Maritime Programme with EThekwini TVET College.

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INTERVIEW

Member-oriented scheme strengthened by high reserves Christo Becker, Principal Officer of Selfmed, shares some insights on the medical insurance industry.

Christo Becker

Please provide an overview of Selfmed, including the history and size of the organisation.

Selfmed Medical Scheme was established more than 50 years ago and it is one of the older schemes in South Africa. Providing coverage for about 8 000 principal members and 13 500 beneficiaries, we are one of the smaller schemes and we focus on providing individual attention to our members. Our size allows us to do this. Could you outline the different options?

BIOGRAPHY After completing his studies in 1996, Christo worked as a paramedic in Cape Town and Port Elizabeth (where he was seconded to run the Eastern Cape operation for Netcare911). He furthered his career in healthcare when he was appointed as hospital manager for a hospital in the Netcare Group. Christo went on to manage a number of other hospitals before joining Selfmed Medical Scheme as the Principal Officer in 2014.

Members are able to choose one of five medical aid options: SelfNET – this entry-level product is our most affordable as it covers a narrow band of benefits. MedXX1 – a hospital plan that extends beyond the prescribed minimum benefits and pays out at 100% of scheme rates for covered in-hospital treatment and in-hospital doctor’s consultations. Selfsure – an option that provides in-hospital and out-of-hospital benefits and is a great choice for a family with young children. Med Elite – a broader hospital plan that covers additional conditions including greater coverage for oncology expenses, hip, knee and back operations. Selfmed 80% – 80% of bills relating to a wide range of conditions are covered. What is the solvency ratio of Selfmed and how does this compare to other medical aid schemes?

Selfmed has a solvency ratio of 100.37%, which is way more than the 25% mandatory requirement. We are one of the top schemes in the country in terms of our reserves. What differentiates your offerings from those of your competitors?

Selfmed has a very strong member focus. As someone who has previously worked as a paramedic and a hospital manager, I’m passionate about healthcare. All of us share the passion and want

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INTERVIEW to ensure our Selfmed members receive good healthcare. We are able to attend to requests for ex-gratia payments on a case-by-case basis and our members appreciate knowing that their health conditions are not compared to other people’s, but are evaluated individually. Furthermore, because our cash reserves are so high and our systems (administration, call centre and marketing, etc) are managed internally, members feel confident about the level of service we can provide. What is your view of the National Health Insurance (NHI) scheme and how do you think it will impact private healthcare in South Africa?

We all support the idea that healthcare should be accessible to all, however, a number of issues weren’t addressed in the White Paper. These include what the basket of care will look like and who will provide the care. This is the first phase of a 14-year implementation period and it is likely that the parameters of the NHI will change during its implementation. A specific risk for private healthcare providers relates to the introduction of a one-payer system. I don’t think people are going to be happy to take the money they usually pay into a medical aid and pay it into a centralised state-run system. Given that the UK, with its lower unemployment rate and higher number of taxpayers and health professionals, struggles to deliver the desired level of care via its National Health Service, it is unlikely that that South Africa will have the reserves to roll out a system that will rival private healthcare. How does the South African healthcare system compare internationally?

Africa – private medical care and medical insurance – is equal to the best in the world. Many of our doctors and medical professionals go overseas for training or to attend medical conferences and we have some of the most advanced medical equipment in the world in our private hospitals. Furthermore, in countries like the USA, medical care is far more expensive than it generally is in South Africa. Ideally, representatives of the entire healthcare industry here should get together to discuss challenges and collaborate on viable ways to solve these so that quality healthcare can be made accessible to more people. Increased legislation, particularly legislation relating to prescribed minimum benefits, has meant that medical schemes are under increased pressure though.

www.selfmed.co.za

I believe that the private healthcare system in South

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

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

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


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

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

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


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

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

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

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

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


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

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

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

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

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

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

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


OLD MUTUAL ENABLING POSITIVE FUTURES IN KWAZULU-NATAL (KZN)

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span investment, life assurance, asset management, banking, healthcare and general insurance. To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership boards in each province to serve as links between the province and our business. These Provincial Management Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a positive impact on the future of this province and its people.

MEET AJ DLAMINI KZN Provincial Management Board, Chairperson

”People don’t care how much you know until they know how much you care” by Dr John C Maxwell As the KZN chairperson, I undertake to:

n Ensure that collaboration is driven in the true sense of its meaning, outside of boardroom discussions. n Working toward a unified Old Mutual with multiple business units working toward the common goal of providing financial solutions to individuals.

n Ensure that the KZN province gets even more involved in the communities in which we work.

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GET IN TOUCH: email KZNPMB@oldmutual.com

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OUR BEST ADVICE TO YOU IS: ADVICE MATTERS As custodians of the savings and investments of millions of South Africans, we know that ADVICE MATTERS when making financial decisions. How to choose the right financial adviser A good financial adviser is a professional who considers all your financial needs and goals, and has the knowledge, experience and support to give you Advice That Matters™. 1. Ask to see the adviser’s training credentials and FAIS accreditation. 2. Choose a financial adviser who represents a respected financial institution. 3. Look for a financial adviser who has access to a range of specialist support services.

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short-term insurance. Our aim is to help our customers manage their finances and to plan and provide a better future for themselves and their loved ones.

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wealth management business. We have a personalised and integrated approach to grow and preserve your wealth over time. Our specialist capabilities include Private Client Securities, Old Mutual Multi-Managers, Fiduciary Services and Offshore Investing. We partner with leading financial planners to provide you with a tailored lifetime wealth plan to help you achieve the best outcome in line with your objectives, goals and aspirations.

NEED A FINANCIAL PARTNER THAT MAKES A POSITIVE IMPACT ON SOCIETY? Old Mutual is deeply committed to playing a significant role in building a strong and financially inclusive South Africa. As a responsible business committed to caring for our communities, the Old Mutual Foundation addresses socio-economic challenges through investing in: • Small business development and entrepreneurship • Youth unemployment through skills training • Strategic education initiatives • Caring for vulnerable communities In 2016 alone the Old Mutual Foundation invested R25 686 172 in various community projects across our nation (actual grant funding payments made during 2016). In KZN the Old Mutual Foundation invested a total of R5 304 869 across its various community empowering portfolios in the region. Our staff are the hearts and hands of Old Mutual in the communities we operate in, and we support our staff volunteers through various programmes. In KZN, 36 organisations have received a total R1 411 520 as a result of staff volunteering efforts.

Old Mutual Wealth is a fully integrated, advice-led

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OLD MUTUAL FOUNDATION CASE STUDIES IN KZN The Clothing Bank (TCB), a non-profit organisation started in 2010, has quickly grown into one of the most successful social enterprises in South Africa, winning international awards and recognition for their work. Their straightforward business model recruits unemployed mothers and teaches them to set up and manage their own small micro-enterprises using donated clothing and accessories from major retailers as start-up stock. Not only does their enterprise training cover core business principles, but more importantly most women are supported out of debt and deep personal crisis with counselling and critical life skills. The Old Mutual Foundation has assisted The Clothing Bank to set up branches in Paarl, Gauteng and most recently provided R500 000 to open up a successful branch in Durban.

The MASISIZANE FUND focuses on enterprise development and job creation to help alleviate poverty and improve food security in South Africa. This is achieved through encouraging entrepreneurship and capacity development and financing of micro, small and medium enterprises (SMMEs). Preference is given to SMMEs with 51% plus ownership by women, youth or people with disabilities. Masisizane Fund disbursed R147m worth of funds in 2016 through soft loans in the three high-impact sectors and facilitated the creation of 862 jobs against a target of 625 jobs. In KZN Masisizane disbursed funds of R26m across 7 clients creating 227 new jobs.

MASISIZANE CASE STUDY IN KZN LHL Engineering Natal (Pty) Ltd is a 100% black owned steel engineering company. The operations are based in New Germany industrial area, KwaZulu-Natal. The business was acquired by the current owner in May 2015 which has transformed the company to a level 1 B-BBEE company. LHL was established in 1969 with a focus on the manufacturing of steel tanks, pressure vessels, reactors, condense columns and heat exchangers. Since the business was acquired, there has been a move towards structural and general steel fabrication.

The company is 100% black owned. One of the owners is a chemical engineer with 30 years’ experience in the chemical industry. The other is the managing director and has been with LHL since 1981 when he started as a design draughtsman. Masisizane Fund Loan - R4.98 m

Geographic Location - Urban

Number of Jobs - 49 Jobs Facilitated

Sector - Supply Chain

WANT TO HELP BUILD THE PLATFORM FOR FINANCIAL INCLUSION? Financial education is the gateway to financial inclusion. The Old Mutual Financial Wellbeing programme promotes financial literacy and awareness across market segments in line with the Financial Sector Charter. We offer highly effective financial education and support programmes to help South Africans take control of their finances. Between 2007 and end of 2016 more than 589 808 people were reached through face-to-face workshops held for communities as well as employees in the public and private sector. In 2016 more than 88 000 individuals participated in our On the Money workshops nationally, with 24 674 participating in our Fin360 programmes. In KZN, 18 569 individuals were trained in our Old Mutual On the Money programmes. For more information, contact AJ Dlamini at email KZNPMB@oldmutual.com


KEY SECTORS Overview of the main economic sectors of KwaZulu-Natal Mining 60 Agriculture

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Sugar 64 Manufacturing 65 Forestry and paper

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Agriprocessing

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Automotive 75 Oil and gas

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Water 78 Energy 80 Tourism 82 Education and training

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Banking and financial services

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Development finance and SMME support

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OVERVIEW

Mining Miners and processors are investing in new mines and plants.

SECTOR INSIGHT A R4.5-billion titanium dioxide pigment plant will open in the Richards Bay Industrial Development Zone. • Tronox has launched a multi-billion-rand mine. • A provincial Mining Beneficiation Strategy is being finalised.

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waZulu-Natal’s mining sector is concentrated near Richards Bay where mineral sands are mined and in the north-west of the province where coal is found around towns like Dundee and the aptly named Newcastle. The Port of Richards Bay also plays a major role in the national mineral sector in that the Richards Bay Coal Terminal is the country’s main export portal. The development of a titanium dioxide pigment plant was announced in 2017 by Nyanza Light Metals and its technology partner, Avertana of New Zealand. The use of stockpiled waste slag (from mines in Mpumalanga) sets this R4.5-billion project apart. Normally the process requires feedstock made up of high-grade rutile and ilmenite, but the new technology works with a much lower grade of titanium dioxide pigment content. Other products will include gypsum, aluminium sulphate and magnesium sulphate. Construction will begin in 2018. Tronox, which is listed on the New York Stock Exchange, officially opened its new KZN Sands Fairbreeze Mine south-west of Richards Bay in April 2016 with the Premier of the province in attendance. Tronox makes pigment which is used in paint and plastics. Fairbreeze and the associated Central Processing Complex in Empangeni will produce titanium dioxide. South African resources company Exxaro is KWAZULU-NATAL BUSINESS 2017/18

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a 45% shareholder in Tronox. The initial value of the investment is R3.3-billion but further monies may be committed to the processing plant. 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. Feedstock for the slag furnaces near Empangeni is ilmenite and it produces zircon and pig iron, among other mineral products. China is an enthusiastic buyer of zircon but growth in that country has slowed. A new name appeared in the mining environment in 2015, but


OVERVIEW South32 is simply an offshoot of BHP Billiton, so the Hillside aluminium smelter at Richards Bay run by South Africa Aluminium is now a 100% South32 asset. Most of the product (high-quality primary aluminium ingot) is exported but some liquid metal form is sent to Isizinda Aluminium which supplies Hulamin, a company that has had a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major aluminium rolling operator in the region and it makes rolled products and extrusions. The provincial government has developed a KwaZulu-Natal Mineral Beneficiation Strategy which will be presented to provincial government departments in the course of 2017. Coal and phosphate are thought to be the first areas of focus. Other processing facilities in the province include the steel plant owned by Arcelor Mittal in Newcastle and Safa Steel’s metalcoating factory in Cato Manor. Tata Steel KZN’s high-carbon ferrochrome plant at Richards Bay went into business rescue and then liquidation before being bought by Luxembourgbased Traxys Africa in the middle of 2016, after a court ruled in its favour. Traxys has chrome mines in Mpumalanga and Limpopo provinces. Tata Steel did not have its own mines. RBM mines the mineral sands of the northern KwaZuluNatal 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.

Coal Some of the coalfields of the province 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 51-million 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). Buffalo Coal Corporation (which used to be called Forbes Coal) has Canadian roots and has two assets near Dundee: Magdalena Colliery and Aviemore Colliery. The company has two processing plants.

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 marble. 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.

CONTACT INFO 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 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

Agriculture Heavy rains have returned to boost agricultural production.

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he long-term drought which came to a very wet end in KwaZuluNatal nevertheless had very serious effects on the agricultural sector. The provincial government reported that 6.3% fewer households were directly involved in agriculture in 2016 compared to 2011, and this was largely attributed to drought conditions. Despite this setback, the KwaZulu-Natal’s agricultural sector is very strong, taking advantage as it does of the province’s fertile and varied soils. Eighteen percent of KwaZulu-Natal’s 6.5-million hectares of agricultural land is arable and the balance is suitable for the rearing of livestock. Vegetables grow well in most areas, and some maize is grown in the north-west. Nuts such as pecan and macadamia thrive. The province’s forests occur mostly in the southern and northern edges of the province. The sugar sector is dealt with separately in this publication. 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. 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 KWAZULU-NATAL BUSINESS 2017/18

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SECTOR INSIGHT Agri-villages and agri-parks are planned to boost rural economies. • 18% of South Africa’s milk comes from KwaZuluNatal. 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. Enterprise iLembe, the development arm of the iLembe


OVERVIEW District Municipality, is looking for investors to further develop an agri-processing hub 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.

Plans to grow Five co-operatives in the Mzimkhulu area have received R34-million to help them plant and work soya beans on 1 500ha. The money was made available by the Masisizane Fund and the KZN Department of Agriculture and Rural Development. There are plans to double the size of the land to be planted. Masisizane has an agribusiness development unit that not only loans money to small farmers but also provides research and sets up agricultural clusters so that farmers, processors and traders can benefit from being in proximity to one another. The national Department of Rural Development and Land Reform (DRDLR) has launched an Agri-parks programme to support small-scale farmers and to boost other businesses related to agriculture such as abattoirs and transport operators. KwaZulu-Natal is one of four provinces where pilot projects have been carried out. The plan is to have an agri-park in each of South Africa’s 44 district municipalities with ownership vesting at least 70% with farmers.

There are three components to the fully realised agri-park concept: The Farmer Production Support Unit: links farmers with markets, collection and short-term storage, local processing, mechanisation • The Agri-hub: equipment hire, processing, packaging, logistics, training • The Rural Urban Market Centre: contract-based links to local and international markets, long-term storage, market intelligence. The Kwa-Zulu-Natal Provincial Government allocated R1.2-billion to its Agri-villages programme in 2016/17 which has resulted in some investment into previously ignored areas. Good news on the land claims front came in the form of a 50/50 voluntary land share programme between the Muden community and the local farmer. Delays in the implementation of the Upgrade of Land Tenure Programme have been the cause of some frustration. Without title deeds it is very difficult, if not impossible, to get loans, and without loans it is very difficult for farmers to buy the sort of machinery or storage facilities that would allow them to expand and enter the formal economy. A KwaZulu-Natal Department of Agriculture and Rural Development (KDARD) 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. The Premier of KwaZulu-Natal, Willies Mchunu, has committed his government to Operation Vula which aims to create economic opportunities for social enterprises and co-operatives, led by African people in particular. They are to benefit from state-led infrastructure programmes, as well as from the buying power of the state through the supply chain. •

CONTACT INFO Coastal Farmers Co-operative: www.coastals.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

Sugar A British company has bought Illovo.

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n 2016 there was a change in ownership of a well-known South African brand. ABF, which used to be Associated British Foods, purchased the sugar company Illovo. ABF bought the remainder of shares that it did not already own in Illovo in April 2016 for R5.6-billion. ABF has big operations in Europe (sugar and bioethanol) and a huge production stream of sugar from beet from two plants in China (180 000tpa). Illovo Sugar Limited has a presence in six African countries and is the continent’s biggest sugar producer. The group’s head office is in Umhlanga Rocks. Another major player in the South African market is Tongaat Hulett whose headquarters are about 50km north of Umhlanga. After a slow 2015, the company’s sugar divisions turned an operating profit of R1.3-billion for 2016/17. This was partly because of better import protection in the countries where Tongaat Hulett operates and because of higher export prices generated into the EU and other Africancountries. Tongaat Hullet Sugar has agreed to a R52-million sugar cane growing project which will see co-operatives and contract farmers plant cane on 3 000ha at Felixton, Maidstone and Darnall. 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. Overall production volumes have been down in recent years because of the severe drought. Total saleable sugar in the South African market (for domestic use and export) was over two-million tons in the 2013/14 and 2014/15 seasons. The figure for 2016/17 was 1.54-million tons.

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

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SECTOR INSIGHT Tongaat Hullet Sugar has set aside 3 000ha for emerging growers.

About 40% of local production is exported. The South African Cane Growers’ Association represents about 24 000 growers who produce about 20-million tons of cane. Illovo and Tongaat Hulett are the major operators of sugar mills. Twelve of South Africa’s 14 mills are located in KwaZulu-Natal. Other millers are Gledhow, ULC, Umfolozi and Tsb (which has a further two mills in Mpumalanga). Illovo has four mills, three sugar-cane estates, four sugar factories, a refinery and three downstream operations that make products such as furfural, furfuryl alcohol, ethyl alcohol and lactulose. The four mills run by Tongaat Hulett are located on the North Coast while the central refinery is in Durban and the animal feed plant, Voermol, is near Tongaat. The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and can store more than half a million tons of sugar. It also has a molasses mixing plant.


OVERVIEW

Manufacturing Big new plants are opening in KwaZulu-Natal.

SECTOR INSIGHT Hulamin’s production of rolled products increased by 19%. • A Halaal Manufacturing Park is planned.

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n order to take advantage of the existing strengths of cities and districts in the province, a network of Industrial Economic Hubs (IEHs) is being developed in KwaZulu-Natal by the provincial government. Leading the process is the Department of Economic Development, Tourism & Environmental Affairs (DEDTEA). The plan links sectors and local economies as follows: • Clothing and Textiles: Amajuba District • Leather Processing: uMgungundlovu District • Renewable Energy: iLembe District • Auto Supplier Park: eThekwini Metro • Agri-processing: Zululand District • Electronics: uThukela District • Perishables Processing: Ugu District • Wood Processing: Harry Gwala District. The focus sectors for the municipalities of uMzinyathi and uMkhanyakude are still under discussion. A Halaal Manufacturing Park is being considered by DEDTEA, finance institution Ithala, the South African National Halaal Authority and business leaders. A location near a good road or national highway and within easy reach of the Port of Durban would be ideal. It is expected that investors will find this an attractive proposition. Another provincial effort to boost manufacturing is the KwaZuluNatal Mineral Beneficiation Strategy. The plan is to ensure that business opportunities and jobs can be created along the value chain. A new smelter park project at Colenso and various titanium dioxide plants in the Richards Bay Industrial Development Zone (RBIDZ) reflect this thinking. Overall, the manufacturing sector contributes 17.7% to the provincial

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gross domestic product (GDP). The strongest export sectors are base metals (32% including aluminium), mineral products such as ores, vehicles and chemical products. An area of anticipated growth and a focus of policy interventions is the marine manufacturing sector. The RBIDZ has already welcomed SPS Manufacturing, a pipe manufacturer which will invest R300-million in uMhlathuze, creating 87 permanent jobs. Dube TradePort has attracted several new investments: Samsung Electronics South Africa (televisions) and Cipla (biosimilar pharmaceuticals). Hulamin is a leader in aluminium finished products. The company makes rolled products at Edendale, Pietermaritzburg and Camps Drift while its Pietermaritzburg facility for making extrusions is one of the three in the country. Rolled product production increased in 2016

KWAZULU-NATAL BUSINESS 2017/18


OVERVIEW by 19% and revenue from the same source went up by 23%. These products make up 91% of the company’s output. Extruded products make up the remainder. Previous problems that the company experienced in getting LPG have been resolved and exports to the automotive industry in the USA are on the increase. Two large oil refineries and a sophisticated sugar milling and refining industry underpin provincial chemical manufacturing. The chemicals and petrochemicals subsector makes up 17% of the manufacturing output of KwaZulu-Natal, with industrial chemicals accounting for nearly a third. The group headquarters of Africa’s biggest pharmaceutical manufacturer, Aspen, are located in La Lucia Ridge. German chemicals group Lanxess has built a carbon dioxide concentration unit at its existing plant in Newcastle. The company makes tanning raw materials at Merebank in Durban and rubber chemicals in Isithebe north of Durban. Newcastle is a chemical manufacturing hub. The big steel works of Arcelor Mittal produce by-products such as ammonium sulphate, and large companies such as Karbochem, Bayer, African Amines and SA Calcium Carbide also operate in the area. AECI has a big presence in the province under the Chemical Services banner. Chemical Initiatives runs an elemental-nutrient sulphur plant in Umbogintwini. SA Paper Chemicals operates a big plant at

Isithebe. Protea Chemicals, has a large manufacturing plant at Mobeni. Sappi Saiccor’s Umkomaas plant is the biggest producer of specialised cellulose in the world with production edging upwards every year towards full capacity of 800 000 tons per annum. Illovo Sugar manufactures downstream products such furfural (used in lubrication oil), furfuryl alcohol, diacetyl (a flavouring in margarine) and ethyl alcohol. Kynoch makes fertilizer at plants in Durban and Richards Bay. Foskor’s acid division manufactures sulphuric acid, phosphoric acid and granular fertilizer in Richards Bay. ChemSpec makes paint at Canelands. KwaZulu-Natal produces nearly a third of South Africa’s plastic requirements. Nampak has several packaging facilities in the province and MPact’s Pinetown facility specialises in FMCG containers. Mcbean Beier Plastics and PCI also operate out of Pinetown.

Textiles Shanghai, with which KwaZulu-Natal has signed a new memorandum of understanding, has agreed to run an exchange programmes focussing on clothing and textiles. Thirty local students will study in Shanghai in the first phase of the project. Canvas and Tent Manufacturing has more than 400 employees in Ladysmith. There are 219 clothing companies in the province (Coface). Ninian & Lester has about 1 500 employees. The footwear sector is showing good recovery after taking a battering from Chinese imports. The purchase of 39% of Eddels Shoes by management and staff has paid off, with 385 staff employed in making 2 700 leather shoes every day. Two international safety footwear firms operate out of Pinetown: Bata Industrial and Beier. The latter company joined forces with three other South African safety footwear manufacturers in 2014 to form the BBF Safety Group. Carpet manufacturers Belgotex Floorcoverings and Ulster Carpets have facilities in Pietermaritzburg and Durban respectively. Home appliance manufacturer Defy, which became part of Turkish group Arçelik in 2011, employs about 2 600 people. Böhler Uddeholm in Pinetown produces tooling materials and welding consumables.

KWAZULU-NATAL BUSINESS 2017/18

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

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FOCUS

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 2016, Mondi had revenues of €6.6-billion and a return on capital employed of 20.3%. 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

Richards Bay mill.

pharmaceutical; packaging and paper converting; pet care; and office and professional printing. 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. Mondi South Africa Our South African business sustainably manages plantation forests and manufactures and sells pulp, virgin containerboard and uncoated fine paper. We own and manage one of the largest Forestry Stewardship FSC®-certified plantation units in the world. We have 1 700 employees working across three divisions: Forestry operations, a pulp and linerboard mill, and an uncoated fine paper and newsprint mill.

CONTACT INFO Physical address: Travancore Drive, Merebank 4052 Postal address: PO Box 31024, Merebank 4059 Tel: +27 31 451 2111 | Website: www.mondigroup.com

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PROFILE

Mondi Group South Africa Operational excellence boosted by Richards Bay mill upgrade.

Business priorities

advantages and are well-positioned for growth opportunities.

We are focused on leveraging our strong domestic market position and the global competitiveness of our Richards Bay mill. With a history spanning 50 years, we understand the value of being efficient, cost-competitive and customer-focused.

Towards the end of 2016 we completed the investment project to upgrade our woodyard at our Richards Bay mill, allowing for improved ef ficiencies in wood handling processes in our forests and providing higher-quality fibre. Additional benefits include reduced maintenance costs, improved reliability, and some energy savings.

There are three strategic value drivers for our business in Mondi South Africa. Maintaining a high-quality, low-cost asset base, keeping a strong focus on performance and the development of our people.

Our investment to expand our product range by producing unbleached kraftliner in addition to white-top kraftliner at our Richards Bay mill gives us the opportunity to supply our customers with this specialised product.

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

We manage about 250,000 hectares of plantation forests in South Africa and maintain 100% FSC certification of our forests – including the identification and protection of high conservation value areas. In addition to certification and sustainable procurement practices, we focus on the proactive and responsible stewardship of forests and freshwater ecosystems, and the maintenance of biodiversity and important habitats.

Partnering with our customers to develop innovative solutions At our Merebank operation, we have made the decision to restart our second uncoated fine paper machine to meet domestic demand for reels and, at the same time, reduce our

New woodyard at Richards Bay mill.

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PROFILE production of newsprint in response to declining demand.

ecosystems and maintaining biodiversity and habitats.

We conducted a customer survey during 2016, and we remain the supplier of choice to our domestic customers who appreciate our reliable products, long-term relationships, and the value we add to their businesses. We have worked closely with our newsprint customers to enhance the quality of our product.

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 riparian zones and wetlands. 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. 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.

Uncoated fine paper machine, Merebank.

Growing responsibly and inspiring our people for long-term success

Health and education are key community investment priorities. Through the REAP (Rural Educational Access Programme) we supported 59 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 2016, the six clinics received 80 709 visits by forestry contractors and local communities.

The extended drought in South Africa remains a significant challenge. We are working with government and other industries in the region to find potential solutions to this challenge. Plans include reducing total water consumption, the municipality increasing the volume of water piped from the Tugela River to the supply dam, and investigating further recycling of water. We continue to focus on the efficient use of water at all our operations, and have reduced freshwater consumption by 12% compared to 2015. We place great importance on proactive and responsible stewardship of forests as well as freshwater

Our wider community investments continue to assist and empower schools, university students, forest smallholders and entrepreneurs, as well as provide healthcare and support.

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Mondi Rotatrim: Celebrating over 30 years of office paper excellence Mondi Rotatrim is celebrating more than 30 years in the South African market. A distinguished leader among office paper brands, Mondi Rotatrim is known as a superior multi-functional office paper that runs smoothly through photocopiers, laser and inkjet printers. Mondi Rotatrim is produced at the Merebank mill in Durban and supplied country wide and into Africa. Our brand carries the Forest Stewardship Council Chain-Of-Custody certification, an independent international accreditation providing assurance to customers that Mondi Rotatrim is produced from responsibly managed forests.

Made from Elemental Chlorine Free (ECF) pulp, Mondi Rotatrim is the only locally manufactured paper with a 160CIE rating for superior whiteness. It is a product that delivers better office performance, better quality and better environmental performance. At the heart of the production process is our 6-meter-wide Voith Paper Machine – one of the most technologically advanced in the southern hemisphere – which enables optimum process control and analysis. Equipped with state of the art technology, Paper Machine 31 produces high quality uncoated wood-free grades with copy paper forming the bulk of

www.mondigroup.com

production. This production line is supported by modern converting equipment. To support our high-quality and well invested operations, the right skills are essential. We maintain a consistently high level of training in our operations and in 2017 seven of our papermakers successfully completed their international Pulp and Paper Craf tsman qualification in Europe, becoming the second group on the African continent to hold this top internationally accepted qualification in papermaking. Our unrelenting drive to deliver the highest quality in everything we do, from managing our forests


Sustainable development makes good business sense. We don't just talk about it; we make it part of the way we work every day Our long-standing working relationship with WWF through our sponsorship and support (since 2001) of the WWF-Mondi Wetlands Programme (WWF-MWP) and direct participation in its activities is testament to our commitment to addressing sustainability challenges. The programme celebrated its 25 year anniversary in 2016 and has catalyzed wetlands

conservation in South Africa through effective partnerships with government, nongovernment organisations and companies. As a result we have improved wetland management on our forestry land while removing commercial trees from riparian zones and wetlands. The WWF-MWP is now part of our global partnership with WWF.

SUSTAINING ECOSYSTEMS THROUGH RESPONSIBLE BUSINESS PRACTICES

Mondi Rotatrim: Progress through the Years 1970's Mondi Rotatrim registered

2000's ISO accreditation achieved in Environment, Quality and Safety.

1980's Moved away from guillotine cutting to precision rotary cutting 1990's

Changed from acid-based to alkaline- based formulation, setting the benchmark for a new environmentally friendly production process

At a cost of R1,53 billion Paper Machine 31 was commissioned, delivering consistently excellent quality

Brand new Cut Size 5 line was installed at a cost of R177 million Multi-fuel boiler installed at a cost of R470 million

Continued investment ensures our top quality product into the future ...

to producing quality pulp and paper products for our customers has enabled us to make products that are household names today. Mondi Group's consistent and

focused long-term strategy has positioned us as a leading international packaging and paper group, with a strong platform for growth.

With this backing, it is little wonder that Mondi Rotatrim has become a market leader among office paper brands over the past 30 years.

Looking forward to the next 30 years ...

www.mondigroup.com


FOCUS

Forestry and paper Companies are investing heavily in processing capacity.

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waZulu-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%). The KwaZulu-Natal Provincial Government’s strategy of creating Industrial Economic Hubs (IEHs) includes the development and expansion of wood processing in the Harry Gwala District Municipality. This is in the wooded south-western part of the province and contains the main towns of Kokstad, Harding, Ixopo and Underberg.

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. Mondi’s Richards Bay facilities produce pulp, linerboard and wood chips and its paper mill at Merebank, south of Durban. It produces KWAZULU-NATAL BUSINESS 2017/18

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SECTOR INSIGHT In 2016 Mondi completed the investment project to upgrade the woodyard at its Richards Bay mill. 258 000 tons of uncoated, woodfree paper per year. Nampak produces crêpe paper at Verulam and Rafalo produces tissue paper. SA Paper Mills is another paper producer. A business rescue plan was put into operation in 2016 to try to save a hardboard manufacturer in Estcourt. Masonite SA was renamed Evowood when


OVERVIEW investors bought the company out of business rescue in August 2016. The plant comprises a coating plant, softboard line, wood yard, chipping operation, refining department and four hardboard production presses. The mill had an annual capacity of 30-million m² of hardboard and softboard but at the time of writing a labour dispute had brought production to a halt. The new investors and the workers could not agree on what steps were needed to make the mill profitable again. Mpact’s upgrade of its Felixton mill will be completed in 2017 which will increase capacity and improve efficiency. The R765-million upgrade will take overall production up to 215 000 tons (from 60 000) and include for the first time a lightweight containerboard option. This is in response to market demand for lighter packaging. The first phase of the upgrade began in 2015 with the development of a recycled fibre (RCF) plant and improvements to the paper machine. Mpact has plastics and paper operations, with the paper section divided into three divisions: paper manufacturing, corrugated and converted paper products, and recycling. The Merensky Group operates one softwood sawmill and a 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. 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 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.

Timber Timber plantations are found in five parts of the province: northern KwaZulu-Natal, Midlands, southern KwaZulu-Natal, Zululand and Maputaland. Close to half a million hectares – 38.5% of the land in South Africa devoted to forestry – is allocated to timber plantations. Of this area, 70% is devoted to hardwoods and the balance to pine, the only softwood grown in large quantities in South Africa. The percentage of privately owned forest land is 93.4%. Merensky has plantations in the Dargle forest while Sappi and Mondi have holdings across the province. Mondi has 220 000 plantation hectares on 330 000ha of land, while Sappi manages and owns about 230 000ha. 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.

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

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OVERVIEW

Agriprocessing Food and beverages are produced on a large scale in KwaZulu-Natal.

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urning agricultural products into tasty food and beverages is done on a large scale in KwaZulu-Natal. Dairy company Clover SA is one of several big brands that originated in KwaZulu-Natal. In Pinetown, Clover has a long-life UHT milk processing and packaging facility; a Queensburgh factory makes fresh pasteurised milk, juice, dairy mix and fermented products; in Estcourt, milk powder is manufactured. Clover buys nearly 30% of all milk produced by South Africa’s farmers. Dairybelle makes milk and milk products at Pinetown. International giant Unilever is strongly associated with KwaZuluNatal. The South African company’s headquarters are in La Lucia. In 2016, Nestlé South Africa invested R1.2-billion in adding instant coffee to the products made at its plant in Estcourt. The company makes infant formula at Harrismith. Two of RCL’s four processing plants (dealing with four-million chickens per week) are in KwaZulu-Natal. RCL used to be Rainbow Chickens but the base of the new company is still in Westville, about 12km west of Durban. The Remgro Group is a 75.9% shareholder in RCL Foods. 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 produce jams and oils. Most of the money 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 local farmers will provide feedstock to the plant.

CONTACT INFO Agricultural Research Council: www.arc.agric.za Food & Beverage Reporter: www.fbreporter.com Milk Producers Organisation: www.mpo.co.za National Agricultural Marketing Council: www.namc.co.za

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SECTOR INSIGHT Nestlé South Africa has a new instant coffee plant in Estcourt. Edible oil products are made by the Willowton Group at its national headquarters and plant in Pietermaritzburg. Other wellknown food producers include: Sasko (Estcourt and Durban), Beacon (Jacobs), Nature’s Source and National Brands (both Durban) and Snackworks biscuits (Westmead, Pinetown). The South African Breweries plant at Prospecton is one of the biggest producers in the region. Bergville subsistence farmers have contracts to supply SAB with yellow maize, an arrangement that will allow them to plan ahead and to invest in production. Coca-Cola has a plant in Durban and a large bottling plant, run by Amalgamated Beverage Industries, at Phoenix. The Ceres Beverage Company has a plant in Durban and bottled-water company aQuelle is based at Kranskop.


OVERVIEW

Automotive Durban hosts the first NAACAM Show.

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s part of attempts to boost the city of Durban as a destination for automotive investment, the first National Association of Automotive Components and Allied Manufactures (NAACAM) Show was held in Durban in April 2017. Future events will rotate between other major centres in South Africa. In line with the policy of developing Industrial Economic Hubs, the Durban Automotive Supplier Park is being built at Illovo, south of Durban and near to the Toyota plant. An amount of R11.5-billion will be invested in three phases, with the first allocation amounting to R4.3-billion. The Dube TradePort Corporation will manage the project, which covers 1 013ha. Other partners are the eThekwini Municipality, Toyota and the provincial government. The aim is to attract car assembly and component manufacturing companies. Thirty-nine companies are currently members of the Durban Automotive Cluster which is funded by the municipality. Together, these firms have about 17 000 employees.  In 2016, Toyota invested a further R6.1-billion into its already large plant at Prospecton. The company regularly sells about a quarter of the vehicles sold in South Africa, and the same proportion of exports volumes. The Corolla car, the Hilux bakkie and the Fortuner SUV are manufactured at the plant. KwaZulu-Natal’s other automotive giant is Bell Equipment. Between the Toyota plant at Prospecton south of Durban and the Richards Bay facility of heavy-equipment manufacturer Bell Equipment, upwards of 11 000 people are employed: both companies are market leaders. The sector accounts for 17.7% of the province’s export basket. The province also has a substantial and varied automotive-supply sector. Trade and Investment KwaZulu-Natal (TIKZN) estimates that

CONTACT INFO 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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SECTOR INSIGHT An Automotive Supplier Park is to be built south of Durban. the province’s component automotive manufacturers enjoy a combined turnover approaching R10-billion. Powerstar trucks assembled in Pietermaritzburg on a site formerly used by Super Group. China North Vehicle Corporation (Norinco Motors) and BEIBEN produce about 60 000 heavyduty commercial duty vehicles every year at their plant in Inner Mongolia. 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. Keeping MAN and Toyota supplied is the R300-million operation, Duys Engineering Group. International company GUD Filters has a big presence in the province. Indian-owned Apollo Tyres SA makes Dunlop products at two large factories in the province. The Behr Group makes airconditioning and cooling systems in Durban. Ramsay Engineering supplies cross-car beams for BMW and Ford.

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OVERVIEW

Oil and gas Richards Bay is set to become an energy hub.

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ational government’s allocation of 3 126MW to natural gas in its medium-term energy policy to 2030 could set Richards Bay on the path to becoming an energy hub. In 2016 it was decided by the national Department of Energy (DoE) that one of the first two gas-to-power plants to be constructed under the Independent Power Producer Programme (IPPP), would be allocated to Richards Bay. A private partner will invest in and run the plant. To produce its allocation of 2 000MW, the plant would have to use a million tons a year of liquid natural gas (LNG). A new unit within the national Department of Trade and Industry (dti) will focus on importing LNG, with Mozambique and Botswana being the most likely initial sources. Local demand for LNG is expected to increase to more than 10-million tons per annum. The fact that neighbouring Mozambique has significant offshore deposits is relevant in the view of the CEO of the Richards Bay Industrial Development Zone (RBIDZ), Pumi Motsoahae. As he says, “We recognise that Richards Bay is geographically well advantaged, located as it is on the east coast. Richards Bay possesses a phenomenal opportunity to become an energy hub.” KWAZULU-NATAL BUSINESS 2017/18

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SECTOR INSIGHT Liquid natural gas is the next big thing. • 75% of Chevron has been sold for R12.6-billion. The RBIDZ signed an agreement in 2015 with Byromate to produce 60MW from a biomass plant, and manufacturing in the solar sector is another option within the broader energy field. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas exploration rights in KwaZulu-Natal to NT Energy


OVERVIEW Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. The Petroleum Agency SA is an agency of the national Department of Energy. Sinopec of China has bought a 75% share in Chevron South Africa for R12.6-billion. Assets include a lubricants plant in Durban, an oil refinery in Cape Town and 820 petrol stations across South Africa and Botswana.

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

and benzene levels, among other things, in fuel products. The modifications to the refinery will bring it into line with the tougher legislation regarding fuel production that is in the pipeline. The Enref refinery owned by Engen can produce 135 000 barrels per day. This sophisticated refinery can convert light and heavy crude oil into high-value products that include jet and diesel fuel, solvents, bitumen, sulphur, bunker oil and aviation gasoline. Safor is a base-oil production facility (jointly owned by Engen, Caltex and Total but operated by Engen) that produces 45% of Southern Africa’s base oils. Engen also owns the adjoining Lube Oil Blend Plant, which produces more than 72-million litres of finished lubricants annually. KwaZulu-Natal has the second-highest consumption of diesel fuel of South Africa’s provinces (17.8%) and the third-highest consumption of petrol (15.4%). Royal Vopak, which runs a large terminal at the Port of Durban, has expanded capacity to 174 000m³ and is planning to grow its ability to store fuel still further. It is also planning a new storage facility at Heidelberg that will cater for petroleum and chemicals. Towns along the N3 highway are increasingly receiving investments in the logistics sector. Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP) which started delivering fluids in 2012. The NMPP terminals allow for greater flexibility in supply. Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines apparently reduces the number of fuel tankers on South African roads by about 60%. The liquid fuels and gas networks of Transnet Pipelines traverses KwaZulu-Natal from west to east and north to south. The petroleum network has intake stations at both Durban refineries, while the gas pipeline runs from Secunda to Durban, with diversions to the manufacturing hubs of Newcastle and Richards Bay, and along the coast between Durban and Empangeni. Transnet Pipelines employs 658 staff, with about 200 located at the head office in Anton Lembede Street in downtown Durban.

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

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OVERVIEW

Water New dams and water pipelines are under construction.

SECTOR INSIGHT KwaZulu-Natal will host the AfriWater Conference in 2017. • Nedbank is sponsoring water conservation efforts. • Groundwater is becoming more important to planners.

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eavy rains fell in KwaZulu-Natal in 2017, finally breaking a long drought. Over two years, the national Department of Water and Sanitation spent R1.2-billion on drought alleviation in the province. The KwaZulu-Natal Department of Agriculture and Rural Development found R220-million in the most recent budget to provide lifelines to affected farmers and communities. Interventions included the drilling of new boreholes, the installation of mobile packaged plants, the purchase of new water tankers and the creation of off-channel water storage to supplement raw water supply. One of the many challenges faced by the South African water sector is a shortage of engineers. A study jointly commissioned by the Water Research Commission and the SA Local Government Association (SALGA) found that the country’s four-in-a-million ratio of engineers is a long way from the required 50 per million. One response at national level was the importation of Cuban engineers to assist in the short term. The Danish government has an agreement to help the South African government with water management and water efficiency. Companies such as smart-meter specialist Kamstrup are already active in the country. A local solution was put in place in September 2015 when the first batch of young people started training to become Water Agents, Plumbers and Artisans. The goal for KWAZULU-NATAL BUSINESS 2017/18

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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. About 34% of the country’s water is lost due to leakage and water to the value of R7-billion is lost every year (National Department of Water and Sanitation). South Africa has adopted a National Water Resource Strategy which takes into account groundwater to a far greater degree than previous plans. This despite many rural settlements depending almost entirely on this resource.


OVERVIEW South Africa is using something between 2-4-million m³ every year, against a potential resource of 7-10-million m³. Extracting groundwater takes skill and money, so it has mostly been neglected but with persistent droughts afflicting the country it is likely to become a much higher priority in water planning. Water harvesting (including installing tanks to collect rain water from roofs) is another area that has not been comprehensively exploited. Innovators and investors in the sector have a lot of scope to develop products and systems to help South Africa secure better water supplies in future.

Infrastructure The first phase of the Spring Grove Dam in the Mooi River area was completed on schedule and increased water supply in the Umgeni River catchment area. Spring Grove takes to five the number of dams in the MooiMgeni system (including Midmar, Albert Falls, Nagle and Inanda dam), which serve more than five-million people in Durban, Pietermaritzburg and surrounding towns. When Spring Grove is complete, the total system yield will rise to 394-million m3/year. A new dam is being built at Smithfield and the wall of the Hazelmere Dam is being raised to increase capacity. A new reservoir (Waterloo) near the King Shaka International Airport, and serving this northern area, has been constructed as part of the master

plan that will see water delivered to this reservoir from the Northern Aqueduct Augmentation Project. The Western Aqueduct project (valued at R864-million) and the associated Northern Aqueduct Augmentation Project will inject water into the rapidly developing area north of Durban. The Tugela Bulk Water Scheme (valued at R1.4-billion) will supply water to KwaZuluNatal’s North Coast.

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 potable water to its six large municipal customers: eThekwini Metropolitan Municipality, iLembe District Municipality, Sisonke District Municipality, Umgungundlovu District Municipality, Ugu District Municipality and Msunduzi Local Municipality. The company has five dams, 10 waterworks, five watertreatment plants and two waste-water works. Large parts of the northern part of the province are served by Mhlathuze Water. The utility has assets valued at more than R3-billion and its area of supply covers 37 000m². 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 & Investment KwaZulu-Natal. 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 Umnengi and uMsunduzi Rivers. A Green Corridor initiative is one of the projects.

CONTACT INFO 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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OVERVIEW

Energy Alternative energy sources are being rolled out.

SECTOR INSIGHT Biodigesters are working well in rural areas. • Durban is running a pilot solar panel project.

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s part of the provincial government’s strategy to boost regional development, the iLembe District has been named as an Industrial Economic Hub (IEH) for the renewable energy sector. With the King Shaka International Airport (KSIA) and the Dube TradePort lying just south of the iLembe District in the eThekwini Municipality, a partnership has been created between the two municipalities and the provincial government to develop a renewable energy technology innovation hub. Technical input from Korean and German companies will occur in a phased development. In the first phase, the Durban University of Technology (DUT) will assist in the establishment of an International Academy for Renewable Energy, Research and Development. A technology park will comprise the second phase, with research and development, manufacturing, technical support and a training centre specific to the renewable energy sector being developed. The third and final phase will see power plants built within the zone capable of generating 260MW. Enterprise iLembe is a private company which is wholly owned by the municipal entity of the iLembe District Municipality and which seeks to drive investment into the area. Ndwedwe in the iLembe district is where Khanyisa Projects has set up 26 biodigesters which produce gas for cooking. The project forms part of the Working for Energy programme of the South African KWAZULU-NATAL BUSINESS 2017/18

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National Energy Development Institute (SANEDI) which targets the use of sustainable clean energy in rural areas. The other area attracting energy investors is the Richards Bay Industrial Development Zone (RBIDZ) which has been named as the site for 2 000MW liquefied natural gas (LNG) plant in terms of national government’s gas-to-power plan. The initiative was only announced in late 2016 so an investor is still to be found for the project, but the move to support the LNG sector has been very positively received as South Africa moves to diversify its energy sources. RBIDZ is also the site of a new biomass plant. Forestry waste, sugar cane and agricultural waste will provide the feedstock for a R2-billion facility that will largely supply the tenants of the Richards Bay Industrial Development Zone with power. The investing company Byromate, which has wind and solar projects elsewhere in South Africa, expects to start delivering power in 2018.


OVERVIEW The provincial government wants to see the RBIDZ become a hub for renewable energy, and this bio-gas project is expected to be the first of many in solar power, wind and other types of renewable energy. The huge forestry, timber, paper and pulp industries of the province carry with them the potential to provide feedstock for the renewable energy sector. KwaZulu-Natal’s most widely grown crops, sugar cane and sugar beet, are among the most efficient and cost-effective feedstock for the creation of biofuel. A R1.8-billion project is planned for the northern area of Makhathini. The Industrial Development Corporation (IDC) is the major investor in this scheme which is intended to produce 72-million litres of ethanol and 34MW of electricity. Sugar grower and producer Tongaat Hulett believes that the national sugar industry could generate between 700MW and 900MW. Biomass technology is at the centre of the conversion scheme of South African Breweries at its Prospecton plant south of Durban. Methane-gas emissions from a nearby effluent plant are piped to the plant where they are converted to electricity. 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. The Provincial Planning Commission is investigating wind channels and sunlight intensity levels in KwaZulu-Natal.

Thirty-seven 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 have the potential for creating 100 jobs.

Solar Municipal buildings in the eThekwini metro are being fitted with solar panels. The Ushaka Marine World Theme Park is one of several facilities to receive solar PV panels intended to reduce demand from the grid. Altogether, the pilot programme should save the city 426.75MWh, or about R330 000 in its first year of operation. The growing popularity of solar water heaters has encouraged Durban manufacturer Solar Beam to spend R2.5-million on expanding its premises. A 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.

Cogeneration Cogeneration (combining heat and power) is gaining in popularity, especially in the sugar milling industry. Calcium carbide producer SA Calcium Carbide has launched its R115-million plant, with the help of the Green Industries Strategic Business Unit of the Industrial Development Corporation (IDC). 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 active in Brazil in turning pulp, paper and sugar into fuel.

CONTACT INFO National Department of Energy: www.energy.gov.za National Energy Regulator: www.nersa.org.za Renewable Energy Center of Research and Development: www.record.org.za South African National Energy Association: www.sanea.org.za South African National Energy Development Institute: www.sanedi.org.za South African Wind Energy Association: www.sawea.org.za Southern African Bioenergy Association: www.saba.za.org Southern African Energy Efficiency Confederation: www.saee.org.za

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OVERVIEW

Tourism KwaZulu-Natal is targeting conferences as a priority sector.

SECTOR INSIGHT Investors are sought for the Drakensberg Cable Car project. • Durban will host the Tourism Indaba until 2022.

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he province of KwaZulu-Natal has some of the most attractive and varied tourist destinations imaginable, from superb beaches and towering mountains to black rhinos and acclaimed wetlands. The province’s fine beaches stretch from the popular South Coast, through the perfect surfing spots in Durban to the wetlands of the north. The combined contribution of retail and tourism to the province’s GDP is 14%. 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. In 2016, a further 18 872ha at two sites was added to the province’s formal nature conservation holdings, at two sites. The province’s conservation agency is Ezemvelo KZN Wildlife. Airbnb is a fast-growing option in South Africa. The Airbnb visitors to South Africa in 2016 engaged in R2.4-billion worth of economic activity. Durban had the largest increase in Airbnb bookings from the previous year.

MICE The meetings, incentives, conference and exhibition sector (MICE) is one where KwaZulu-Natal excels. It has been declared a priority sector by the provincial government. KWAZULU-NATAL BUSINESS 2017/18

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A dedicated unit within the KZN Tourism Authority, the Convention Bureau, has booked more than 50 events and conferences since 2012, bringing about R3-billion into the provincial economy. Durban’s hosting of the Tourism Indaba further supports the idea that the province is a major conference destination. More than 7 000 delegates are annually attracted to the Durban International Convention Centre to exhibit South Africa’s assets to international tour operators. The city has secured the Tourism Indaba until 2022. The range of topics covered by recent conferences held in KwaZulu-Natal is wide and includes the World Economic Forum, the World News Media Congress, the Pan-African Health Tourism Congress, the National Association of Automotive Components and Allied Manufactures (NAACAM) Show and the Durban Maritime Summit. International conferences held in the 2016/17 financial year include:


OVERVIEW 2016 International HIV and AIDS Conference • World Leisure Congress • International Society of City and Regional Planners (ISOCARP) Summit • 5t h A f r i c a n I nte r n e t Governance Forum • World Federation of Trade Unions Congress • General Assembly of the International Association for the Prevention of Blindness • World Hospital Congress. A more local focussed conference took place in June 2016. The aim was to find investors for the Drakensberg Cable Car project. Thirteen technical reports have been completed and the project has now reached the stage where the private sector can invest. Many thousands of visitors to KwaZulu-Natal arrive by road, and the Mooi River toll plaza is one of the major transport intersections in the country, but an important arrival method for tourists at the high-end of the market is by cruise liner. The Port of Durban envisages a 32 000m² area that will cater for two ships and at least 5 000 passengers. South Africa attracts 0.5% of the world’s cruise-ship market which comprises about 15.4-million passengers annually. Another potential growth area is health tourism. Upwards of seven-million people travel the world annually for procedures, and South Africa is well placed to receive a percentage of this market. A conference held in Richards Bay in 2017 put the focus on issues such as investment, training and the development of products. •

Hotels Research by Tourism KwaZulu-Natal shows that the coastal province consistently has the best hotel occupancies in the country. Tsogo Sun runs 14 hotels in KwaZulu-Natal, five of which are Garden Courts. Six hotels are in Durban with a further four in nearby Umhlanga, where one of the group’s most luxurious hotels, the 89-room Beverly Hills, is located. A new “mega-hotel” has been created by Tsogo Sun, with the amalgamation of the Southern Sun North Beach and Southern Sun Elangeni hotels. Protea Hotels has 18 properties in the province, with seven in Durban including the Protea Hotel Edward. The upgrading of the Point area between the beach and the Port of Durban has resulted in major investments. The Docklands Hotel at the Durban Waterfront is a four-star Signature development that cost about R100-million to develop. The 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 and Gooderson Leisure has a varied portfolio. Sibaya Casino and Entertainment Kingdom, a Sun International property, is north of Durban between Umdloti and Umhlanga. The casinos in Newcastle (Century City), Empangeni (Tusk Umfolozi Casino) and Pietermaritzburg (Golden Horse Casino) are run by Century Casinos Newcastle, Peermont Global and Akani Msunduzi Management respectively. Durban’s Golden Mile is the site of the province’s biggest casino complex: the Sun Coast Casino and Entertainment World (Tsogo Sun).

CONTACT INFO Amafa/Heritage KwaZulu-Natal: www.emakhosini.co.za Ezemvelo KZN Wildlife: www.kznwildlife.com Hospitality Investment Conference Africa: www.hica.co.za Inkosi Albert Luthuli International Convention Centre Complex: www.icc.co.za KwaZulu-Natal Tourism Authority: www.zulu.org.za KZN Gambling Board: www.kzngambling.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net Tourism KwaZulu-Natal: www.zulu.org.za

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OVERVIEW

Education and training KwaZulu-Natal has 30% of South Africa’s schoolchildren.

SECTOR INSIGHT Curro plans a tertiary listing on the JSE. • T he K ZN Provincial Government has paid out R1.5-billion in bursaries.

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ducation faces big challenges in South Africa. KwaZulu-Natal, with a population of more than 10-million, more than half of whom live in rural areas which suffered decades of neglect, has made significant strides in providing access to education. With 30% of South Africa’s pupils in its schools, the province’s results have a big bearing on how the nation fares in annual examinations. There is now near universal access to primary and secondary schooling and a new drive to enrol pre-school children in Grade R has achieved a 70% success rate. The province has 1 689 early childhood development centres. Access to tertiary education has also increased exponentially in South Africa in the last two decades. There were some alarming scenes on South African university campuses in 2016, with students organising under the banner of #FeesMustFall. There are some serious issues that South Africa’s educational planners need to tackle, not least the issue of funding, but this should not obscure the fact that access has improved. Before the end of January 2017, the National Student Financial Aid Scheme (NSFAS) had paid R1.3-billion to 26 public universities to advance payment of registration fees for poor students. The provincial government of KwaZulu-Natal bursary programme paid out R1.5-billion in the three years to 2016 and more than 5 000 graduate interns obtained jobs at provincial government departments at a cost to government of more than R100-million. KWAZULU-NATAL BUSINESS 2017/18

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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. In this context, educational analyst Nic Spaull put some myths to bed in an important article in the Mail & Guardian in 2016. Despite being highly critical of the education system and arguing strongly that “meaningful reform” is needed, he tackled the false idea that somehow “black youths are regressing educationally”. Spaull pulled together a series of studies to show that: • between 1986 and 2012 the number of black university graduates increased sixteenfold • between 2004 and 2014 the number increased by 137% (against a black population rise of 16%) • graduate unemployment is low at 6% (although worse for blacks than whites).


OVERVIEW There are two universities and two universities of technology in KwaZulu-Natal, and the national distance university, the University of South Africa (Unisa), has a presence in five locations. USB Executive Development offers business courses for executives. UKZN has close to 40 000 students studying on five campuses in two cities. Greater Durban hosts Howard College, Berea (environment, engineering, law, humanities) and the Nelson Mandela School of Medicine at Congella. The UKZN administration and the Graduate School of Business are based at Westville (also science, engineering, health) whereas the Edgewood, Pinetown, campus focusses on education. The Pietermaritzburg campus offers a broad academic programme but its specialities are fine art, theology and agriculture. UKZN also hosts the National Research Foundation. The Durban University of Technology (DUT) has six faculties operating in seven campuses in Durban and the Midlands. DUT is well known for its outstanding graphic-design school and offers one of only two chiropractic programmes in South Africa. The University of Zululand offers diploma and degree courses on two campuses at Empangeni and Richards Bay.

Private There has been a strong trend in recent years towards the opening of private or independent schools, and not necessarily in the

very expensive bracket. Curro believes it will be running 200 schools in South Africa by 2020, double its current number. There are six Curro schools in KwaZulu-Natal. Curro’s purchase of Embury, the teacher-training college in Durban, launched the company’s entry into the tertiary sector. It is now planning to list its tertiary division on the Johannesburg Stock Exchange (JSE). Advtech, the other big private company, already has 27 tertiary campuses nationally, in addition to its 78 schools operating under a variety of labels. Advtech operates 10 educational sites in KwaZuluNatal, including schools such as Crawford and Trinity House, a chefs’ school (Capsicum), three Varsity Colleges and the Design School for Southern Africa.

Training National and provincial government are investing heavily in training. Various provincial government departments awarded about R316million in support and bursaries for more then 5 000 students across the province in 2016. 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. 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.

CONTACT INFO 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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OVERVIEW

Banking and financial services Three new banks are set to join the sector.

SECTOR INSIGHT Gap insurance is an innovative new product. • KZN banks are financing mega-projects.

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o fewer than three new banks are set to make their debuts on the South African market in the near future, with one of them based in KwaZulu-Natal. All are state-related enterprises: Ithala, Postbank and a Human Settlements Development Bank. The Ithala Development Finance Corporation has functioned for many years in the province as the provider of funds for small enterprises, especially in areas where infrastructure is poor and access to traditional banking services is not good. The provincial government, which runs Ithala, aims to have a banking licence for the entity by the end of 2017. In 2016, Postbank (part of the South African Post Office, SAPO) received a first-level licence. Once a board of directors has been appointed and a company formed, the Reserve Bank is likely to grant the full licence. The current Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7-billion loan to enable it to open its own loan book. KWAZULU-NATAL BUSINESS 2017/18

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Three state entities are merging to create the new Human Settlements Development Bank: the National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency. The focus will be on financing housing for poorer households and for large state-funded housing projects. Part of the drive is to integrate cities better and to combat the legacy of the spatial divide that apartheid left behind. Privatesector investment will be sought. For many decades South Africa had a retail banking Big Four – Standard Bank, Nedbank, Absa/Barclays and First National Bank. All of them have a strong presence in the province, but the big news in the retail sector since 2001 has been the emergence of Capitec Bank. Based on Capitec’s results for 2015/16, BusinessTech published a chart giving Capitec the fourth-most customers. Merchant banking and investment banking are the most com-


OVERVIEW petitive sectors within banking. In KwaZulu-Natal, banks have been vital in getting 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 continuing infrastructure upgrades. The European Investment Bank extended a €50m long-term loan through Rand Merchant Bank to fund the massive water systems upgrade being undertaken by the eThekwini Municipality. The investment programme encompasses two new aqueducts and the replacement of 1 600km of old asbestos water mains. RMB was also involved in several Tongaat Hulett and Richards Bay Coal Terminal projects, two major players in the provincial economy. Nedbank Capital supported Seacom’s R240-million undersea-cable project, and has signed a three-year funding agreement with healthcare group Netcare to the value of R1-billion. Finscope’s 2014 survey of South African banking and financial surveys shows that between 2004 and 2014 a remarkable eight-million people were connected to the financial system. Overall, the “financially included” reached 31.4-million (up from 17.7-million in 2004). In a category called “formally served” which includes services other than formal banks with branch networks, the percentage of South Africans grew from 50% to 80%; in the “banked’”category (more traditional but including new de-

vices), the percentage grew from 46% to 75%. This is partly because South Africa’s formal banking sector has such excellent infrastructure. Nedbank has Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone. Nedbank also has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas and also on all days of the week such as public holidays and Sundays. Some of Nedbank’s other innovations include Home Loans Online Digital Channel and Market Edge, together with the Nedbank App Suite™. The Nedbank@Work product offers targeted service to employees of companies that bank with Nedbank, including free advice. The Keyona Plus account includes funeral cover, a loan facility and a method of transferring money. The Nedbank4me account is tailored to the youth market. Financial services group Old Mutual (a 54% stakeholder in Nedbank) is set to create four stand-alone businesses out of the Old Mutual Group. This will allow the UK-based wealth management business and the New York-based asset manager to be free of linkages to the rand, while the South African businesses, Nedbank and Old Mutual Emerging Markets, can focus on their specialities. With business size and nature being so complex, flexibility is vital for financial service providers. Old Mutual has an employee retirement scheme called the Old Mutual Super Fund which is able to cater for different levels of retirement funding and risk cover. Linked employee benefits make it possible for employers to integrate the scheme with the company’s payroll. The insurance market has become more varied over time, with a greater variety of products now available to more market segments, including middle-income earners. A typical example of a specific product that is responding to new realities is Old Mutual’s iWYZE medical gap cover, designed to pay the difference between what medical aid scheme is willing to pay and what the hospital or doctor is charging.

CONTACT INFO Auditor-General South Africa: www.agsa.co.za Association for Savings and Investment South Africa: www.asisa.org.za Financial Services Board: www.fsb.co.za Insurance Institute of South Africa: www.iisa.co.za Insurance South Africa: www.insurance.za.org JSE Limited: www.jse.co.za Post Bank: www.postbank.co.za South African Institute for Chartered Accountants: www.saica.co.za South African Reserve Bank: www.resbank.co.za

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OVERVIEW

Development finance and SMME support Small businesses have multiple financing options.

SECTOR INSIGHT Seda’s incubators assist entrepreneurs in six sectors. • Ithala is building storage hubs to help SMMEs.

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peration Vula is a provincial government initiative to ensure that co-operatives and small businesses get a leg up into the formal economy through state-led infrastructure programmes that assist them, and through procurement policies that favour them. The Coastal KZN TVET College has been training members of co-operatives and people working in small, medium and micro-enterprises (SMMEs) in the skills that will help them do well in business. Training young people is an important part of the plan to boost SMMEs. A provincial Youth Economic Empowerment plan allocates R94-million over three years to training 3 425 young people in technical skills such as brick-laying, working with concrete, diesel mechanics, boiler-making, fitter and turning, and plumbing. Trainees are given KWAZULU-NATAL BUSINESS 2017/18

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placements after the training is complete. In 2015, 1 050 young people were trained; the figure in 2016 was 1 125. An active national agency in supporting entrepreneurs is the Small Enterprise Development Agency (Seda). Seda gives nonfinancial support through training, assistance with filling in forms, marketing and creating business plans. In KwaZulu-Natal, Seda runs 12 incubators which either help new businesses get started or with the rehabilitation of existing enterprises. Three models are used: Technology Demonstration Centres (demonstration and training); Technology Incubators (where the focus is rehabilitation); Hybrid Centres, which combine elements of the other two models. The incubators in KwaZuluNatal include ICT and construction (three centres each), furniture and hi-tech (two each), chemicals and essential oils. The provincial government controls two important develop-


OVERVIEW ment funding institutions, both of which report to the Department of Economic Development, Tourism and Environmental Affairs (DEDTEA): • Ithala Development Finance Corporation • KZN Growth Fund. Ithala is in the process of applying for a full banking licence. In 2015/16 Ithala financed 336 businesses and co-operatives, which led to an estimated 2 618 jobs being created. The agricultural sector was a particular focus area for the corporation. As of December 2016, a total of 129 businesses had been financed by Ithala, which also has a home-loan offering. Ithala’s commercial and industrial property portfolio of over onemillion square metres of lettable space makes it one of the biggest operators in the province. 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, further assisting small enterprises. Another initiative aims to get small traders organised through the establishment of a provincial small traders’ association. The KZN Growth Fund Trust operates as a Debt Fund and an Equity Fund with a total of

R1.1-billion worth of assets under management. Among the Growth Fund’s most recent funding projects funded are: • SA Shipyards expansion, R42.8-million (150 jobs) • Dark Fibre Africa telecoms cabling installation, R193-million (4 201 jobs) • Link Africa telecoms, R65-million (500 jobs) • Mpact plant expansion, R200-million (1 760 jobs). 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, 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. All of the major banks have SMME offerings. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership. 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. The Masisizane Fund makes loan financing available in sectors such as agriculture and agri-processing, commercial, supply chain and manufacturing. It also offers training and technical support and funding to help businesses to comply with legislation.

CONTACT INFO Business Partners: www.businesspartners.co.za Department of Small Business Development: www.dsbd.gov.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 Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za

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MASISIZANE FUND A JOURNEY TO SUSTAINABLE LIVELIHOODS FOR UMZIMKULU SMALLHOLDER FARMERS The Masisizane Fund was established in 2007 as an initiative of the Old Mutual Group with a mandate to contribute measurably to job creation which in turn helps eradicate poverty in South Africa. Its success is driven by a focused approach on high impact industry sectors, coupled with a comprehensive SMME finance solution that includes business support and loan finance in the following sectors: Agribusiness Franchising Supply Chain Cluster Development Flagship initiative in KwaZulu-Natal and Eastern Cape In 2015/16 more than just a new planting season started for five co-operatives in uMzimkulu, in the Harry Gwala Municipal district. This season was different as they worked in partnership with the Masisizane Fund, adopting a cluster development approach in order to address the agricultural challenges faced in the rural areas and to ensure socio-economic transformation.

Old Mutual is a Licensed Financial Services Provider

With 76% of the 180 302 people in uMzimkulu living below the poverty line, Masisizane together with KZN Department of Agriculture and Rural Development were prompted to address the challenge and have been working systematically toward changing this shocking statistic. This initiative is funded on a 50% grant, 50% loan basis and co-operatives are responsible for repaying the loans once they have harvested. During the first phase of the initiative soya and dry beans were planted, the next phase was to bring about mechanisation. Each co-operative received one mechanisation combo comprising a tractor, planter, trailer, boom sprayer disc, and plough. A single harvester was bought to be shared by the five co-operatives. As this initative grows, Silos will be installed in a central place to support grain production in the district. Drak Oil Mill, the off-taker and processor of soybean for all the farmers involved is a valued partner in this cluster development initiative.


“Success can be interpreted in different ways but when you see optimal use of rural infrastructure to support production, more people

Newly planted land

employed, learning opportunities, dignity, pride and harmony restored in a community, it is worth working through all the daily challenges� Sifiso Myeni, Provincial Manager, KwaZulu-Natal.

Beans growing well

Mechanisation in action

Final produce ready for market

Masisizane provides non-financial, value adding, post investment services including capacity development, business management

and technical support, financial education, market development as well as product/ service quality standards and compliance.

Masisizane has its head office in Gauteng (011 217 1746) with regional offices in: Eastern Cape 043 704 0116 KwaZulu-Natal 031 335 0402 Limpopo 015 287 4279 Western Cape 021 509 5074 A flagship office has been established in Kokstad (039 727 3100) to oversee all activities in the Eastern Cape Flagship Programme.

More information on Masisizane can also be accessed from our website: www.masisizane.co.za An initiative of the

Group


LISTING

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

President

Department of Basic Education

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: 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

Deputy President

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

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 12 323 8246 Website: www.thepresidency.gov.za

Department of Cooperative Governance and Traditional Affairs

Minister in the Presidency 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: 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

Dept of Agriculture, Forestry and Fisheries

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

Department of Correctional Services

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

Department of Economic Development

Department of Arts and Culture

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

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 KWAZULU-NATAL BUSINESS 2017/18

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LISTING Department of Defence

Department of Human Settlements

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

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

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

Department of Justice and Constitutional Development

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

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 (National Treasury) 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 Military Veterans Address: 328 Festival Street, Hatfield, Pretoria 0001 Postal address: Private Bag X943, Pretoria 0001 Tel: 080 232 3244 (SA only) Website: www.dmv.gov.za

Department of Higher Education and Training

Department of Mineral Resources

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

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 Home Affairs

Department of Police (Civilian Secretariat for Police Service)

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

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

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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

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

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 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

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

Department of Tourism 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 Rural Development and Land Reform 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

Department of Trade and Industry 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 Science and Technology 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

Department of Transport

Department of Small Business Development

Department of Telecommunications and Postal Services

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

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 2017/18

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

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LISTING Department of Water and Sanitation 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 Department of Women Address: 36 Hamilton Street, Arcadia Pretoria 0001 Postal address: Private Bag X931, Pretoria 0001 Tel: +27 12 359 0000 Fax: 086 765 3365 Website: www.women.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 Premier: Dr ZL Mkhize

Economic Development, Tourism and Land Affairs MEC: Sihle Zikalala

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

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

Agriculture and Rural Development MEC: Mr Thembu Mthembu

Education MEC: Mthandeni Dlungwane

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

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

Arts and Culture MEC: Bongiwe Sithole-Moloi

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

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

Human Settlements and Public Works MEC: Ravi Pillay

Community Safety and Liaison MEC: Thomas Mxolisi Kaunda

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

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

Provincial Planning Commission Chairperson: Prof Bonke Dumisa

Moses Mabhida Building, 300 Langalibalele Street Tel: +27 33 341 4765 Website: www.kznppc.gov.za

Cooperative Governance and Traditional Affairs MEC: Nomsa Dube-Ncube

Provincial Treasury MEC for Finance: Belinda Francis Scott

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

KWAZULU-NATAL BUSINESS 2017/18

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

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LISTING Social Development MEC: Weziwe Gcotyelwa Thusi

Transport MEC: Thomas Mxolisi Kaunda

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

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

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

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

Mandeni Municipality

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

Maphumulo Municipality

Dannhauser Municipality

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

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

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

Tel: +27 34 621 2666 | Fax: +27 34 621 3114 Website: www.dannhauser.gov.za eMadlangeni (Utrecht) Municipality

Newcastle Municipality

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

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

Greater Kokstad Municipality

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

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

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

Dr Dlamini Zuma Municipality

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

KwaDukuza Municipality

uBuhlebezwe Municipality

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

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

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LISTING uMzimkhulu Municipality

Richmond Municipality

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

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

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

uMngeni Muncipality

Ray Nkonyeni Municpality

uMshwathi Municipality

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

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

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

Umdoni Municipality

uMuziwabantu Muncipality

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

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

Big 5 False Bay Municipality

Umzumbe Municipality

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

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

Jozini Municipality

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

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

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

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

Impendle Muncipality

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

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

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

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

Mpofana Municipality

Endumeni Municipality

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

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

Msunduzi Municipality

Nquthu Municipality

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

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

Mkhambathini Municipality

KWAZULU-NATAL BUSINESS 2017/18

98


LISTING Msinga Municipality

Nkandla Municipality

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

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

uMvoti Municipality

City of uMhlathuze Municipality

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

Tel: +27 35 907 5100 | Fax: +27 35 907 5444 Website: www.umhlathuze.gov.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

uMlalazi Muncipality Tel: +27 35 473 3300 | Fax: +27 35 474 4733 Website: www.umlalazi.gov.za ZULULAND DISTRICT MUNICIPALITY B400 Gagane Street, Ulundi 3838 Tel: +27 35 874 5500 Fax: +27 35 874 5589 Website: www.zululand.org.za

Alfred Duma Municipality

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

Abaqulusi Municipality

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

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

Okhahlamba Municipality

eDumbe Municipality

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

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

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

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

uMfolozi Municipality

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

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

uPhongolo Municipality

Mthonjaneni Municipality

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

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

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INDEX

INDEX Alfred Duma Local Municipality��������������������������������������������������������������������������������������������������� 11 Durban Chamber of Commerce and Industry������������������������������������������������������� 2, 7, 23, 25 Durban International Conference Centre����������������������������������������������������������������������������������� 9 Durban Investment Promotion (DIP)���������������������������������������������������������������������������������� IFC, 1 Global Africa Network (GAN)���������������������������������������������������������������������������������������������������� OBC Indaba Lodge Richards Bay���������������������������������������������������������������������������������������������������������� 35 Kaefer Thermal Contracting Services���������������������������������������������������������������������������������������� 38 KwaZulu-Natal Sharks Board Maritime Centre of Excellence����������������������������������� 44 - 47 Masisizane Fund............................................................................................................................... 90 Mondi Group South Africa��������������������������������������������������������������������������������������������������� 67 - 71 Msunduzi Local Municipality............................................................................................... 26 - 28 Nedbank���������������������������������������������������������������������������������������������������������������������������������..... 50 - 53 Old Mutual................................................................................................................................. 54 - 57 Richards Bay Coal Terminal........................................................................................................... 36 Richards Bay Industrial Development Zone (RBIDZ)....................................... ........... 32 - 34 Sappi................................................................................................................................. ........... 40 - 41 Selfmed......................................................................................................................................48, OBC Unemployment Insurance Fund (UIF)����������������������������������������������������������������������������������������� 5 University of Zululand.................................................................................................................... 31 KWAZULU-NATAL BUSINESS 2017/18

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KwaZulu-Natal Business 2017/18  

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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