EMNOTHWENI Connecting Africa
On the pulse of Trade & Investment in KwaZulu-Natal
Issue 16 • C o n n e c t i n g A f r i ca t h r o u g h r a d i o : I k u s a s a l e n t s h a H i g h Sc h o o l • G l o b a l V i l l a g e • B u i l d i n g r e l at i o n s h i p s w i t h V i s e g r a d • La u n c h o f t h e 1 s t C a l l C e n t r e • U m k h a n ya k u d e M u n i c i p a l R o a d s h o w • I n t r o d u c t i o n t o t h e N o r t h
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YOUR PROUD HOST FOR WORLD ROUTES 2015 YOUR PROUD HOST FOR WORLD ROUTES 2015
CONTENTS Connecting Africa
Publisher: Trade & Investment KwaZulu-Natal
Letter from the editor
Editor: Ayanda Zuma Assistant Editor: Angel Sibisi
Journalist: Nicola Jenvey Disclaimer: This magazine is published in good faith and every effort has been made to ensure that the information was true and correct at the time of going to print. Head Office Contact: Trade and Investment House, 1 Arundel Close, Kingsmead Office Park, Durban, 4001, South Africa Mail: PO Box 4245, Durban, 4000 South Africa
Uniting four radio stations in Durban to scope the provinceâ€™s economic future
Connecting Africa through radio
Gauteng Office Contact: 99 George Storrar Avenue, Groenkloof, Pretoria
Determinants of investment attraction and economic development
South Africa is a major industrial power and leader in the production and export of minerals
Assisting the Exporters
Building ties with companies in The Czech Republic, Hungary, Poland and Slovakia
Building Relationships with the Visegrad
The second National Electronics-Association of Representatives for the Electronics Industry (AREI)
Hosting National Electronics Week
TIKZN spends between 3.5% and 4% of its payroll on training and education
Bringing 1st Call to Durban
TIKZN Gauteng Office hosted a business networking event.
TIKZN showcasing KwaZulu-Natal Key Investment Projects
KwaZulu-Natal will host its own trade show in October 2015
Showing off KwaZulu-Natalâ€™s assets
Umkhanyakude District Municipality spanning 12818km2 and called home by nearly 630000 people
An Introduction to the North
Tel: +27 (0) 12 346 4386/6763 Fax: +27 (0) 86 501 0848/1788 www.tikzn.co.za
Tel: +27 (0) 31 368 9600 Fax: +27 (0) 31 368 6379 Email: email@example.com
The Year 2014/15
Letter from the CEO
Layout & Design: MediaCom SA Photography: Ndumiso Manyakanyaka Angel Sibisi Thembeka Kunene
TIKZN, furthering the endeavours to unlock local trade across the province
TIKZN Partnering with Local Government
Building ties with companies in The Czech Republic, Hungary, Poland and Slovakia
Jozini Tiger Lodge at a Glance
TIKZN believes in changing lives of ordinary people
Changing lives at Inanda
Letter From the Editor Sanibonani!
I am honoured to be entrusted with a magazine that has broken so much ground in its 8 years. Emnothweni publication is designed to keep you abreast with issues of affecting the economy in and around the province of KwaZulu-Natal.
GM: Marketing and Communications, Trade & Investment KwaZulu-Natal
The stories you will find in this edition demonstrates that empowerment is not merely about an exchange of equity between the elites of society, but primarily about human development. Education and skills development are probably the most critical requirements for competing in a modern, rapidly changing global economy. It is for this reason that as Trade & Investment KwaZuluNatal (TIKZN) we invest our Corporate Social Responsibility development in the education sector, see page 26. The municipal road shows are another promotion avenue TIKZN uses to promote its services to the public and also to engage effectively with stakeholders at local government levels (Page 22-23). The road shows are aimed at building and sustaining sound relations and promoting the municipalities as investment destinations. TIKZN continues to stamp authority in the trade sector by partnering with all spheres of government. The last municipal road show we embarked on was in District of Umkhanyakude. For the first time we have introduced feature articles from experts in their fields. This will be a regular in our magazine. The feature on this issue is called “the Global Village” page (8-9). The contributors to this feature are John Hanna and Sasha Lennon, Directors of GDP Global. We will be approaching influential captains of the industry or industry experts to provide us with an overview on a certain subject matter. This issue is filled with a great mix of informative reads and developments pertaining to the exceptional kingdom of KwaZuluNatal. We hope the dedication and diligence that went into the making of this edition will inspire you to –wherever you are-seek ways in which you can contribute to both the transformation and the growth of our economy. Salani Kahle, until next time!
MESSAGE From the
Dear Stakeholders The past few months have been particularly vibrant ones for Africa, South Africa and KwaZulu-Natal. The country hosted the World Economic Forum (WEF) on Africa in Cape Town and the African Union (AU) Summit in Gauteng in early June. The event focused on the strategies today’s leaders could pursue by engaging with Africa’s youth over the next 25 years.
Zamo Gwala CEO, Trade & Investment KwaZulu-Natal
It honoured change with the continent achieving economic transformation by growing two to three percentage points ahead of the world’s gross domestic product (GDP). According to World Economic Forum- Africa Competitiveness Report; Africa’s solid average growth rate of more than 5 percent over the past 15 years bears witness to the region’s impressive economic potential. A growing labour force and a large and emerging consumer market hold the promise of significant further growth opportunities. The province of KwaZulu-Natal has gradually moved to being a tertiarysector economy, with the services sector accounting for over 60% of the provincial economy. However, there is a strong move to re-industrialise the economy and create much needed employment that will help curb the triple challenge on poverty, unemployment and inequality. The provincial government is establishing industrial economic hubs across the province, in order to harness the unique industrial capacities of the different districts. Strong sectors of the provincial economic makeup (excluding general government services) include Finance, Real Estate and Business Services (FREBS), Trade, Manufacturing and Logistics. Not only are these sectors large industrial backbone of the KZN economy, but they are also still going strong, recording phenomenal growth rate. Great potential lies in the agricultural sector, and the transportation sector, which includes maritime transport that remains largely untapped. Potential for economic growth in the provincial lies everywhere, with the provincial government’s plans to (i) attract strategic investment activities into the Dube TradePort, home of the newly commissioned world-class King Shaka International Airport, (ii) establish industrial economic hubs across the province to unleash each district’s unique economic potential, and (iii) increase international tourism though establishment of world-class tourism offerings. The effort to envision Africa’s long-term development trajectory cannot be understated in a global village where the information technology revolution has provided unprecedented opportunities for countries and regions to lift huge sections of people out of poverty, improve incomes and catalyse economic and social transformations.
Interesting Facts Connecting Africa is a platform that enabled strategic promotion and marketing of the KZN province as the premier investment, trade and tourism destination.
Connecting Africa through radio Trade & Investment KwaZulu-Natal (TIKZN) and Tourism KwaZulu-Natal were instrumental in connecting Africa playing their part in a project that united four radio stations in Durban to scope the province’s economic future by promoting the region to potential investors and tourists on the continent. Now in its fourth year, the Connecting Africa initiative saw representatives from Phoenix FM in Lusaka, Zambia, and Star FM in Harare, Zimbabwe, join colleagues from Durbanbased East Coast Radio (ECR) and its sister station, Gauteng-based Jacaranda FM, experience KwaZulu-Natal’s pleasures and business opportunities. The teams spent a week from May 8, 2015 taking in the province’s must-see tourism destinations and business ventures before broadcasting live to their respective audiences on May 11 and 12. Collectively, the four radio stations broadcast information to 13 million listeners across the continent.
“Connecting Africa is a platform that enables the strategic promotion, branding and marketing of KwaZulu-Natal as the premier investment, trade and tourism destination. This is a key opportunity to further expand trade relations with Zimbabwe and Zambia,” TIKZN CEO Zamo Gwala says. He says TIKZN’s mission was to link opportunities to the province’s developmental needs with Connecting Africa being the means by which to showcase investment, trade and tourism opportunities and expand exports between the countries. ECR marketing manager Renée Burton adds it was “more than just a project” - it was about key stakeholders amplifying future opportunities within Africa. “It’s the richness of all the cultures involved that also serves to set this initiative apart from other ventures,” she says. In addition to forging greater, mutually-beneficial socioeconomic relationships with South Africa’s neighbours, Connecting Africa is a learning exchange programme that provided a chance for the four radio stations to share intellectual property and cement cross-border collaborations. According to Tourism KwaZulu-Natal, Connecting Africa provided the organisation the platform to market and promote the province to its key markets in KwaZulu-Natal, Gauteng and the South African Development Community (SADC) signatories Zimbabwe and Zambia.
Interesting Facts In the 2015 edition of Connecting Africa, four radio stations were part of the campaign; Star FM, Phoenix FM, Jacaranda FM and East Coast Radio.
The aim was to showcase the tourism offerings in the province and thus boost tourist arrivals and encourage visitors to experience the province’s diverse regions. The teams experienced a range of business and tourismrelated offerings during their stay with visits to the KwaZulu-Natal Midlands and the north coast to St Lucia before returning to Durban for experiences in and around the city. Among the projects profiled were Bluff-based Rocket Works and Trellidor in Phoenix. A proudly South African company, Rocket Works supplies high quality, efficient and cost-effective multi-fuel stoves to customers globally. By using stick-sized pieces of wood, the rocket stove significantly reduces the quantity of wood required for cooking compared to conventional three-stone wood fires. This means dry branches that have fallen from trees are often an adequate source of fuel, effectively limiting the number of healthy, growing trees that must be chopped down to harvest larger logs. The stove is sold in a complete knockdown form and assembled on-site by local teams using the tools provided by Rocket Works. A former TIKZN client, Gwala says the company benefited from the trade and export expertise the organisation offers. Among South Africa’s most trusted security companies, Trellidor had been designing and manufacturing steel security barriers for doors and windows since 1976. The company was now represented in 17 countries including 11 in Africa. Gwala says from a tourism perspective, the activities included in the Connecting Africa campaign were the safari game drive, the boat cruise in St Lucia and the Nelson Mandela Capture Site visit. “Connecting Africa was a significant platform to join forces in profiling the province and expand trade linkages with other African countries, while marketing KwaZuluNatal as a competitive business destination nationally and internationally,” he says.
V i l l l a a b g o e l : G
By John Hanna and Sasha Lennon Sasha Lennon
Determinants of investment attraction and economic development Investment attraction is fundamental to regional economic development and access to international, national and regional markets is a key determinant of long-term economic growth. Efforts to attract investment to regions or local government areas must be informed by a clearly articulated, strategic approach that builds on comparative and competitive advantage. This applies to the development and promotion of the KwaZulu-Natal economy as much as any other aspiring region on the continent. Efforts to develop regional economies are most successful when they focus on building on these strengths. Businesses can also use a region’s comparative advantage to build a competitive advantage, developed through the combination of factors such as knowledge, resources, skills and the ability to innovate.
ent Investm o t h c a o Appr
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Interesting Facts GDP Global is a leading and specialised economic promotion and business development consultancy.
Typically around 70% of investment is made by existing firms (established businesses plus newly established firms or startups). Hence, locally-established companies often present the greatest potential to take advantage of new investment opportunities. Other matters concern the need to facilitate private sector business growth and development from within the local area or region (small and medium enterprises and other local business growth or establishment) as well as, critically, providing the enablers or critical preconditions for economic growth and development - specifically infrastructure and an urban environment appealing to knowledge workers. Hence, investment attraction strategies will be well-served by activities to identify and nurture existing and potential supply chain links between existing business and industry and prospective new investors. To do this, KwaZulu-Natal organisations responsible for establishing and administering the investment attraction strategy must recognise and promote the region’s strategic competitive advantages. The province’s investment attraction strategy will need to reflect the vision and strategic priorities as articulated in local planning documents. Determinants of investment attraction To successfully attract investment to a region, a multiplicity of factors need to be in place. Our experience across most of the world’s continents show the main investment determinants are: • Business facilitation and community amenities: this includes housing, liveability, safety, community facilities and cultural and recreation facilities. Attracting investment means accommodating management and their families and, in many cases, skilled workers. Companies who perceive difficulties in attracting quality staff due to a lack of social amenities take these matters into account in selecting places in which to invest. • Resource/asset-seeking and physical infrastructure: this includes ports, airports, roads, power, telecommunications, water and other utilities and importantly incorporates land serviced by this infrastructure. The whole package must be procured in a suitable form and timely fashion with a high degree of certainty of delivery. • Efficiency-seeking: transport and communication costs to/from and within the host economy. • Human resource development: this is a prerequisite to identify and seize investment opportunities, yet many places often under-invest in human resource development due in part to a range of market failures. Policies developing and maintaining a skilled, adaptable and healthy workforce and ensuring the full and productive deployment of human resources support a favourable investment environment. • Agglomeration economies: other characteristics include using agglomeration economies, causing investment to gravitate towards spatial clusters of related activities or
support industries. Firms form in clusters like technology parks and central business district (CBD) or downtown areas to benefit from positive externalities from activities like new knowledge creation and the exchange of information. Councils, provincial economic development authorities and regional development organisations looking to attract investment from outside their region or internationally need to systematically consider and address these attributes and challenges. They must work together to ensure the province has the information and resources in place to pro-actively seek out and facilitate new investment and ultimately, sustainable economic development. Hanna is the GDP Global MD based in London and Johannesburg. A specialised economic promotion consultancy, GDP Global provides economic consulting, benchmarking, investment promotion and training services to trade and investment promotion organisations worldwide. Lennon is a SC Lennon & Associates director and consultant based in Brisbane. The firm is a leader in the field of economic development policy and strategy formulation, socio-economic research and analysis. He is also a GDP Global associate.
Trade & Investment KwaZulu-Natal has tailored training and employs a team of export specialists with international business experience and international business contacts to provide export training and export capability assessments and assistance with export planning.
Assisting the Exporters “We have your concerns at heart and are passionate about your success and it is in this light we can give you advice that really makes a difference,” he says. The Black Economic Empowerment Financial Assistance and Technical Financial Assistance Fund (TAF) are part of the organisation’s export promotion activities. The export promotion assistance scheme provides financial assistance to KwaZulu-Natal traders to develop export markets, but is limited to sectors within the regional industrial development strategy.
As Africa’s second-largest economy, South Africa is a major industrial power and leader in the production and export of minerals, exhibiting convincing manufacturing strengths. Trade & Investment KwaZulu-Natal (TIKZN) CEO Zamo Gwala says economic and social policies ensured the international reintegration of the economy and the creation of an environment for sustained export growth and healthy net capital inflows. Into this environment TIKZN has bolstered its export assistance to local companies looking to either expand their market reach outside South Africa’s borders or seeking to further their already successful exporting initiatives. This means the organisation has the capacity to assist entrepreneurs through the customs processes, explaining the exporter registration requirements and supplying the necessary application forms and guidelines. Additional assistance comes in completing and lodging application documents. “We have consultants who are exerts in customs processes for export, so when you are ready to export, we can guide you through the process. We are the delivery arm for the national Department of Trade and Industry (DTI) and our performance is benchmarked against successful export figures, meaning you can be rest assured we shall do all in our power to refer you to any other entity able to assist and follow up to ensure you receive the service you deserve,” Gwala says. The team brings clarity to the mysteries of customs tariff classification, export permit requirements, F178 banking requirements, stoppage and examination of cargo by customs and value-added tax (VAT) for zero rating of export suppliers. TIKZN can also put exporters in touch with clearing and forwarding agents, export transporters, groupage agents, shipping agents and export agents - and ensure companies could optimise opportunities for accessing export incentives.
The TAF is a financial assistance programme established to support projects promoting economic development within the province. It assists businesses develop bankable business plans from any sector requiring funding that could be sources from available development financial institutions with a risk appetite for diverse projects. Gwala says this fund is only intended for enterprises seeking to start or expand viable projects in priority sectors biased towards the KwaZulu-Natal provincial growth and development strategy. TIKZN can also: • provide exporters with the DTI’s calendar of events; • identify companies that should be participating in exhibitions, national pavilions and trade missions; • assist companies compile Export Marketing and Investment Assistance (EMIA) scheme applications; • identify shows in which TIKZN affiliates can participate and • provide post-event evaluations. In terms of local exhibitions and trade shows, TIKZN can identify potential exporters that would benefit and send out notifications; assist with their exhibition and EMIA applications and provide expertise on post-event evaluations. Gwala says international exhibitions and trade shows could appear more daunting, but again TIKZN could assist in identifying potential exporters; securing exhibition space; identifying companies to participate; sending out invitations; assisting with application forms and providing assistance with post-event evaluations.
Interesting Facts The Visegrad Group came into being on 15 February 1991 to work together in numerous fields of common interest.
Building Relationships with the Visegrad GROUP Trade & Investment KwaZulu-Natal (TIKZN) has worked diligently at building ties with companies in The Czech Republic, Hungary, Poland and Slovakia with 12 delegations having interacted in the past three years and several investors considering the province for their businesses. Commonly called the Visagrad Group or simply V4, the trading bloc came into being on February 15, 1991 to work together in numerous fields of common interest. TIKZN says several V4 investors were considering opportunities in agroprocessing and non-woven textile sectors, while prospects were being investigated in information communication technology (ICT) joint ventures (data centres, technology partners and assembling investment); power generation (technologies, biomass, power generation and energy efficiency consulting); medical devices and pharmaceuticals (joint venture investments into KwaZuluNatal companies and supply new hospitals and manufacturing entities); port and rail (component manufacturing and technology partners); housing materials; agribusiness and the automotive industry. The respective trade offices had also established virtual platforms for interacting between KwaZulu-Natal business and V4 businesses. The initiatives over the past few years culminated in an interaction session on June 4, 2015 that attracted 83 people and envisaged TIKZN leading a trade and investment mission to the region in November this year. The success of the Visegrad model has also been bolstered by a number of similar agreements both in the wider European region and throughout the world. There is a strong drive for Visegrad small and medium enterprises to look at investment outwards and plenty of opportunity for trade with South Africa and KwaZulu-Natal in particular.
Interesting Facts AREI- Association of Representatives for the Electronics Industry
Ms Jessica Slater, Project Manager (TIKZN ) with delegates during the 2015 National Electronics week held at Moses Mabhida Stadium.
Mr Sizwe Mbanjwa, General Manager, Investment Promotion (TIKZN) delivering a keynote address.
Hosting National Electronics Week The second National ElectronicsAssociation of Representatives for the Electronics Industry (AREI) regional expo brought together the country’s leading suppliers from design to manufacturing in Durban. Held at the Moses Mabhida Stadium on May 20, the electronics event offered consumers and participants a substantial range of product knowledge, services and learning via a full seminar programme. These included addresses by Department of Trade and Industry chief director of advanced manufacturing, aerospace and defence electrotechnical Nomfuneko Majaja and Trade & Investment KwaZuluNatal (TIKZN) general manager investment promotion Sizwe Mbanjwa. Organised by New Events, the TIKZNsponsored expo saw a continual flow of visitors both from the region and further afield.
“Having this commitment and support from government is a positive move and something the organisers and AREI are keen to continue to raise the profile of the South African electronics sector and offer industry a route to the information and support the organisation can offer,” AREI chairman Arnold Perumal says. He adds it was “very encouraging” to see Majaja visiting the numerous stands to gain a more comprehensive view of the electronics industry, as the move enabled various exhibitors to make known their various concerns and suggestions. “It was clear from the turnout that the electronics industry is very much alive and thriving in (South Africa) and the regional event in Durban was without doubt the place to be. AREI looks forward to a close partnership with TIKZN going forward,” he concludes.
Ms Nomfuneko Majaja, Chief Director of Advance Manufacturing at the Department of Trade and Industry.
Bringing 1st Call Fact
The official opening of the 1st Call Group call centre in Durban demonstrated the extent to which Trade & Investment KwaZuluNatal (TIKZN) has shown its mettle in attracting key investors to the province. Founded in 2009 at the inception of the outsourcing boom in South Africa, 1st Call Group is now one of the leading outsource contact centres in the country. While its client portfolio includes British multinational grocery and general merchandise retailer Tesco, UK-based price comparison service and switching website Uswitch.com and UK central heating company HelpLink, the primary focus and business model was built on the small and medium enterprise (SME) market. MD Darren Robson says this was because it was the market sector where the 1st Call Group believed it could offer a more intimate, concentrated and cost-effective managed service. With the assistance of TIKZN and the national Department and Trade and Industry (DTI), the 1st Call Group was one of the first contact centres to receive approval for the business process outsource (BPO) grant scheme launched in 2011, through growth, strategic partnerships with its clients.
Mr Zamo Gwala, TIKZN CEO, giving a keynote address.
“South Africa - and more specifically KwaZulu-Natal - is undoubtedly a land ripe of investment and development. Durban is a city alive with opportunity and potential for growth, while business is birthed from dreams and a desire to be more than we are,” TIKZN CEO Zamo Gwala says. During the 1st Call Group’s official launch, he said having key BPO players establish their companies in KwaZulu-Natal would play a significant role in creating local jobs. However, achieving those dreams requires partnerships, finance and a deep-seeded will to never give up, but to fight every challenge. Today Mount Edgecombe has become the home for the 1st Call Group, but Robson says coming to a new country and ploughing through a new field was “arduous, bodybeating hard work, sweat and tears”.
Mr Darren Robson, 1st Call Managing Director.
The business started at 220 Flanders Drive with DTI approval to create 500 jobs and a similar business plan to create and sustain up to 1000 jobs over a five-year period. Now approaching the end of its fourth year in business and after some initial teething problems and issues acclimatising to the country and culture, the 1st Call Group has outgrown its original facility. The new facility can accommodate more than 400 fulltime employees with Robson indicating he expected it to reach capacity within the next six months to a year. The 1st Call Group has built a strategic relationship with landlord GRID Construction Group with Robson saying the company “understands our vision”. “We are therefore very excited to see these projections expedite rapidly over the next year or two,” Gwala says.
Mr Zamo Gwala and Darren Robson.
to Durban Fact
The extent to which their landlords understood their vision was evident in an agreement between the 1st Call Group and GRID for the top floor of their new premises to house Monyetla learners. The Monyetla Work Readiness Programme is a public-private partnership model designed as a government initiative to grow South Africa’s BPO skills base and create employment for specifically unemployed youth. Robson says with further growth available, GRID has agreed, as and when required, in the complex or on any of its other larger properties, to enable the 1st Call Group to grow the business to its projected milestones ahead of schedule.
The new facility can accommodate 400 full time employees.
“In the interest of efficiency and to strengthen client relations, the 1st Call Group has invested extensively in technology and infrastructure to further demonstrate our commitment to economic growth in the province through job creation and skills development,” he says. In 2012 the DTI awarded the 1st Call Group Best International Operator for its Monyetla programme and the group recently applied for - and been approved for - another 200 jobs for 2015 in line with its target. “We are strategically placed with vast experience in a number of industries, products and clients, meaning we can offer bespoke sales and service campaigns, inbound or outbound, servicing a wide variety of campaigns from telecommunications to financial services, insurance, surveys, utilities and broadband,” Robson says. In December 2014 the 1st Call Group appointed South Africans Justice Mathabatha and Chris Britts as local acquisitions director and operations director respectively. The move was in line with diversifying its client base and minimising risk with the duo already securing clients like 1 Life and Discovery.
1st Call management showing delegates the new state of the art facility.
Fellow South African Gary Hohls is the financial director, while British investors Gary Nixon and Stuart Forrest are responsible for UK client acquisition and liaison. South African investor Cecil Uren is responsible for South African client acquisition and liaison, while Brit Michael Yarwood is the company’s sales director. The 1st Call Group’s human resources team works closely with schools, further education and training colleges and other tertiary institutions to recruit trainees and staff. However, the 1st Call Group never envisioned operating as a BPO business in isolation. Robson says from the outset the directors knew the key to success would be strategic alliances, specifically the ones the company has formed with the DTI. “The alliance continues motivating and encouraging the 1st Call Group to make this country, which we now consider home, better than it was before we arrived. We strive to be an employer of choice - one that not just provides skills development and jobs, but one that changes lives,” he says. Robson adds the company has never taken lightly its opportunity to put food on tables and build dreams among its team members and it remains the pinnacle on which it operates.
1st Call management showing delegates the new state of the art facility.
“As a team and a responsible business, we will continue making connections and creating opportunities,” he concludes.
We are likened to the Oak tree.
Our heritage, like the roots is, extensive and runs deep. Our contacts and networks, like the branches and leaves are countless. Our influence, like the canopy is shielding and nurturing.
Over 159 YEARS YOUNG
An Unsurpassed Heritage, A Lasting Foundation for Growth in Changing Times The Chamber is deeply rooted in the commercial and industrial soil of the province, with extensive global connections and relationships extending from grass-root non-profit organisations and micro enterprises - to the board rooms of blue chip corporate giants and parastatals. No other organisation in KwaZulu-Natal is able to offer the legacy and credibility, unique to this institution. We invite you to engage with us.
Tongaat Hulett is an agriculture and agri-processing business, focusing on the complementary feedstocks of sugarcane and maize. Its ongoing activities in agriculture have resulted in the company having a substantial land portfolio within the primary growth corridors of KwaZulu-Natal with strong policy support for conversion at the appropriate time.
TIKZN showcasing KwaZulu-Natal Key Investment Projects TIKZN Gauteng Office hosted a business networking event in conjunction with Tourism KwaZulu-Natal and Tongaat Hulett at San Deck, Sandton Sun on the 5th of April. The purpose of the event was to showcase some of the key KwaZulu-Natal investment projects. The event was attended by 123 participants from a variety of sectors. The evening was opened by Ms. DonnĂŠe Kruger from TIKZN, followed by an introduction of key projects by Tongaat Hulett Executive, Mr. Trenley Tilbrook and overview of KZN Tourism imperatives outlined by Mr. Abie Wentzel, Tourism Development, Tourism KZN. Several leads have been generated and the event has led to several commercial inquiries as well as visits from Development Financial Institutions which is currently being followed up. A list of inquiries has been set up and circulated to relevant stakeholders for follow-up. It is envisaged that the inquiries generated will translate into future projects.
Mr Trenley Tilbrook, Executive at Tongaat Hulett Developments addressing the delegates during Tongaat Hulett Gala Dinner.
Ms Donnee Kruger, Manager at TIKZN Gauteng Office, welcoming the delegates.
Ms Sbongile Nxumalo and Thembelihle Ndlovu networking with delegates.
Showing off KwaZulu-Natal s assets Drakensberg http://www.zulu.org.za/discover/destinations/drakensberg KwaZulu-Natal will host its own trade show in October as a platform from which industry players of the travel, adventure and lifestyle sectors can collectively market their offering in the province and exchange business opportunities.
Remnants of British colonialism and a mix of Zulu, Indian and Afrikaans traditions gave the province a rich cultural diversity, while KwaZulu-Natal was the only province with a monarchy specifically provided for in South Africa’s constitution.
Being held at the Suncoast Casino and Entertainment World between October 9 and 11 and co-sponsored by Tourism KwaZulu-Natal, the KZN Travel and Adventure Show will be open to both consumers and the trade. During the launch event held over this year’s East Coast Radio House and Garden Show, KwaZulu-Natal Economic Development, Tourism and Environmental Affairs MEC Michael Mabuyakhulu said the event would appeal to families looking for the best holiday destination or day trips.
The region also has active conservation activities. The Royal Natal National Park, forming part of the uKhahlamba Drakensberg Park World Heritage Site, is home to more than 1000 plant species, 12 antelope species and three of the world’s seven species of crane.
It would also be relevant to corporates seeking accommodation for business purposes or venues for conferences, meetings and weddings. In essence, the trade show presents the opportunity for people living and working in KwaZulu-Natal, as well as tourists, to travel through the province’s eight regions - the Battlefields, Elephant Coast, eThekwini Durban, Midlands, North Coast, South Coast, uKhahlamba Drakensberg and Zululand - in just three days. According to www.southafrica.info, KwaZulu-Natal covers 94361km2 to be roughly the size of Portugal and constituting 7,7% of South Africa’s land area. Census 2011 indicated it was home to 10,3 million people and thus the country’s second-most populated region.
Some of South Africa’s best protected indigenous coastal forests are found along the province’s subtropical coastline including Dukuduku and Kosi Bay. The region also accommodates the iSimangaliso Wetland Park, the province’s first Unesco World Heritage Site.
In the six-week festive season period, the city experienced a 20% hike in visitor numbers with 1,45-million people spending R3,1 billion in Durban.
iSimangaliso Wetland Park http://www.zulu.org.za/discover/destinations/ elephant-coast-maputaland
eThekwini Durban http://www.zulu.org.za/discover/destinations/ pietermaritzburg-and-midlands
The northern part of the province, along the Swaziland border, provides typical African savannah landscape and a natural backdrop for its rich wildlife, protected in several game parks.
“As some of the non-travelling South Africans have indicated they could not afford to travel or were not aware of accessible offerings, the sector had to work harder to address these information and cost barriers,” he said.
“The KZN Travel and Adventure Show is the place to get great travel tips, chat to destination owners, view new products and see what is out there in our province,” Mabuyakhulu said.
It was into this arena the KZN Travel and Adventure Show would be operating.
In terms of exhibitors, the event provides opportunities for anyone in the travel, adventure and lifestyle sector whether they were owners or managers, providing a service or selling a product. Statistics South Africa (Stats SA) reflected tourists to the country rose to 1,2 million in March 2015 from 1,1 million the previous month. Tourist arrivals reached a record high of 1,5 million in December 2013 and a record low of 37430 in June 1979 - demonstrating the extent to which the country has progressed in promoting tourism. Economically, tourism contributes more to South Africa’s gross domestic product (GDP) than the automotive industry and sustains more direct and indirect jobs than mining. In a presentation several years ago to the South African Chamber of Commerce and Industry, former Tourism Minister Marthinus van Schalkwyk cited 2011 figures that showed tourism’s direct contribution to GDP rose to R84 billion to constitute 9% of South Africa’s economy. That meant tourism accounted for one in every 11 jobs in South Africa, while internationally-accepted figures for tourism reflect every eight tourists to a country generates one permanent job. Stats SA figures have consistently shown the country’s growth in international tourist arrivals has outpaced the global industry growth year-on-year. However, Van Schalkwyk reflected at the time that at any given moment 75% of South Africa’s tourists were local South Africans taking breaks around their own country.
Earlier this year eThekwini mayor James Nxumalo unveiled statistics that reflected the city experienced one of its most successful tourism years in 2014 with 7,4-million visitors travelling to our shores. This translated into R19,6 billion in direct spending and saw 95396 jobs created and sustained over the one-year period. Durban Tourism head Philip Sithole said the analysis reflected Durban experienced a 15% increase in foreign visitors from the US; 12% increase from Australia; 13% from Zimbabwe and 10% from Zambia.
49% Gauteng was again a key source market, constituting 49% of visitor arrivals to Durban and underpinning the city’s decision to lump the marketing spend for Gauteng with the international spending rather than domestic spending.
The five local municipalities within the Umkhanyakude District are Umhlabuyalingana Municipality, Jozini Municipality, The Big 5 False Bay Municipality, Hlabisa Municipality and Mtubatuba Municipality However, by 2016/2017 Hlabisa and The Big 5 False Bay municipalities will merge.
An Introduction to the North Spanning 12818km2 and called home by nearly 630000 people, the Umkhanyakude District Municipality is only beaten in size in KwaZulu-Natal by neighbour Zululand District Municipality. Located in the far northern region, it is named after the famous yellow-barked fever tree and literally means “seen from afar”. It is also home to South Africa’s first World Heritage Site, the iSimangaliso Wetland Park encompassing more than 200km of pristine coastline and prime tourism opportunities. The five local municipalities within the district are Umhlabuyalingana Municipality, Jozini Municipality, The Big 5 False Bay Municipality, Hlabisa Municipality and Mtubatuba Municipality. However, by 2016/2017 Hlabisa and The Big 5 False Bay municipalities will be merged. Umkhanyakude mayor Jeffery Vilane says the municipality has committed to several key development aspects and strategic objectives including: • good governance and clean administration; • accelerating the provision of basic infrastructure, particularly water, sanitation, electricity and roads; • promoting sustainable environmental health services; • promoting disaster management; • facilitating and promoting economic development using agriculture and tourism as key drivers; • promoting social and community development; • facilitating skills development; • implementing poverty eradication and food security programmes;
• enhancing revenue; • facilitating and co-ordinating effective spatial planning, land use management systems and geographical information systems services; • promoting effective information communications technology (ICT); • facilitating effective environmental planning and management services; • accessing key information and • forming and sustaining strategic partnerships. “It is our conviction if these strategic objectives and trusts are addressed, the district would have successfully created the much-needed enabling environment to accelerate economic development in general and investment attraction and promotion within the district in particular,” Vilane says. He believes the district municipality has several competitive advantages setting it apart from other South African regions and on which it could build its growth and development legacy including: • • • • • • • • •
its strategic location as a border district; the Lavumisa and Ponta D’Ora border posts; Jozini Dam; iSimangaliso Wetland Park and the 200km coastline incorporated in that World Heritage Site; a good climate; cultural heritage; the Ubombo Mountain ranges; tourism and agricultural potentials and mineral resources.
Interesting Facts Umkhanyakude District has an estimated population of 630 000 people.
In essence, the N2 corridor between Durban and Maputo continues driving economic growth in tourism and paves the way for agriculturalists and herbalists to explore opportunities amid the rich medicinal plants found throughout the region. Taken more broadly, Vilane says this represented potential for investors and exporters since there was a global growth in natural herbal products.
“This is a memorable sight, one closely monitored by resident researchers and opportunities abound for incentive visitors to get up close and personal with Africa’s wildlife in a meaningful way by partnering with researchers in conservation efforts,” Vilane says.
Among others are the tourism awareness programme, tourism business workshops, small medium and microenterprise development, product development, promoting cultural tourism and the craft enterprise development programme.
These include turtle, rhino, leopard and whale-shark tracking to attach tags or collars for research purposes.
The Elephant Coast incorporates the best of land and sea safari experiences with its world-class conservation areas in the iSimangaliso Wetland Park and Africa’s oldest game reserve HluhluweiMfolozi Park. It is also home to 21 different ecosystems - from dense evergreen forests of towering fig trees, swamp forests with tangled masses of greenery, thick coastal forest, mountainous sand dunes and pristine beaches to the African bushveld with thorn trees and abundant wildlife.
Into the tourism mix are a host of community initiatives including homestay accommodation, game reserves, locally trained guides and the making and selling of crafts that enable the local people to participate in the natural wealth of the Elephant Coast. This, Vilane says, further enriches visitors’ experiences of the cultural history.
Linked to the theory, Vilane says there are several established events already making in-roads to promoting Umkhanyakude as a tourism destination and thus boosting economic transformation.
“This, one of South Africa’s most beautiful and unspoilt areas, offers a range of facilities for both conferencing and incentives,” Vilane says. Hluhluwe-iMofolozi Park is credited with saving the white rhino from extinction in the 1950s and is today also home to a wide variety of antelope and significant populations of elephant, buffalo, giraffe, lions, leopards and cheetahs. Lake Jozini is the southernmost point in Africa where the ferocious tiger fish can be found which Vilane says makes the region “an unusual destination for meetings and incentives” - corporate getaways that include friendly fishing competitions with a difference. The Kosi Bay Nature Reserve surrounds the rare and beautiful Kosi Bay lake system to offer a tropical paradise of crystal clear water, marshland, swamp and coastal forests home to 250 bird species. The beaches are the nesting grounds for sea turtles coming to shore from October to December to lay eggs and the same treacherous land over which the hatchlings struggle en route to the sea between December and March.
Key cultural sites like the Border Caves, Ghost Mountain, Dingane’s grave, Usuthe Gorge and the 700-yearold fish traps at Kosi Bay point to Umkhanyakude’s rich history.
The annual four-day iSimangaliso MTB Unplugged mountain bike ride in September raises awareness of and funds for the conservation of rare and endangered species within the World Heritage Site. The race takes bikers through the park and the adjoining Phinda Private Game Reserve using existing management tracks and animal paths - exposing cyclists to wildlife and abundant birdlife.
“The mixture of Zulu, Swazi and Thonga tribes present a myriad of significant opportunities for further exploration of cultural and community-based tourism initiatives,” he says.
Between July and September, the whales move north on their way to breeding grounds off the Mozambique coast and between September and November, return along the coastline as they head back to the nutrient-rich water of Antarctica.
Major tourism schemes underway include the Lubombo Spatial Development Initiative, Pongolapoort Dam Tourism Development, Lubombo Transfrontier Conservation Area and developing the Mkhuze regional airport.
“While plenty has been achieved in the municipality, there is still more left to be done to accelerate service delivery to our people,” Vilane concludes.
Branded the Lubombo Route, the Lubombo Transfrontier Conservation Area was launched during Tourism Indaba 2006 by ministers from South Africa, Swaziland and Mozambique and highlights a joint commitment to ensure tourism further stimulates the regional economy. Opportunities exist for infrastructure development and private sector investment in tourism with Vilane indicating the municipality has engaged in numerous programmes and projects to stimulate tourism entrepreneurship among previously disadvantaged local communities.
In the past year, Trade & Investment KwaZulu-Natal embarked on three municipal roadshow in a to bid unlock investment opportunities and create jobs across the province.
TIKZN partnering with local government: UMkhanyakude Municipal Roadshow
Furthering the endeavours to unlock local trade across the province, Trade & Investment KwaZulu-Natal (TIKZN) and the Umkhanyakude District Municipality held a highly-successful municipal road show in June. Held at the Ghost Mountain Inn in Mkhuze over June 18 and 19, the event aimed to equip, energise and inspire local entrepreneurs to become innovative thinkers in the world of business. It also aimed to build and sustain relations with the local government spheres and create awareness of TIKZN’s services. The closed session on the first day between TIKZN and municipal officials was a platform to engage on issues of trade, investment and projects in the district with possible linkages to substantially boost the district’s economy. The following day began with a networking business breakfast where interaction between TIKZN and the Umkhanyakude District Municipality ensured government’s shared goals to attract investment, develop strategic partnerships and create jobs throughout KwaZulu-Natal could be achieved. Speaking on behalf of the Umkhanyakude mayor Jeffery Vilane, municipal manager Elliott Mzimela extended his appreciation to TIKZN for establishing a partnership geared towards stabilising the economy. He alluded to the need for investors to the region and the impact it would have on the lives of communities living in the area. He said the road show was an opportunity to share key information on how entrepreneurs could unlock their business careers and build the confidence of Umkhanyakude and its five local municipalities’ business innovators. “Umkhanyakude is always committed to empowering the lives of its citizens who have a vision and, together with TIKZN, this road show is a step in the right direction of bringing the right tools to the people ... filling their minds with the right information and training to be used in becoming economically independent citizens,” he said. Speaking on the TIKZN board’s behalf, Cedric Gina highlighted the extent to which investment in KwaZulu-Natal continued emerging as a major contributor to South Africa’s growing economy. The favourable business environment had also made the province “a sound investment destination” for global investors - a platform that could efficiently market district projects on the international stage. “Based on this, it is essential to ensure municipalities are ready in terms of trade, investment and research expertise,” Gina said. Jozini Business Chamber secretary Chris Mafuleka commended the partnership, but indicated the challenges for local businesses mainly centred on funding. Launched in April this year, the chamber has indicated it would use the partnership between TIKZN and the district municipality to the advantage of local business as well as tap into the expertise TIZKN could offer.
Interesting Facts Jozini Business Chamber was launched in 2015
TIKZN and Umkhanyakude District officials wrapping up deliberations after the successful closed session during the first day.
Mr Elliot Mzimela, Municipal Manager for Umkhanyakude District Municipality extended appreciation to TIKZN for establishing a partnership geared towards the economic growth in the district. Delivering the keynote address, TIKZN corporate services executive manager Mxolisi Manyakanyaka said the organisation offered a host of services and the engagement had the ability to create jobs within the local community. “TIKZN continues stamping authority in the trade and investment sector, partnering with all spheres of government to support local trade and businesses create and sustain employment in KwaZulu-Natal,” he said. In the past year, TIZKN embarked on three municipal trade shows in a bid to unlock investment opportunities and create jobs across the province. The aim was to boost awareness of the organisation’s services and facilitate interaction between
Cedric Gina, Trade & Investment KwaZulu-Natal Board Member
TIKZN and the municipalities to attract investment, develop strategic partnerships and create employment. The agency promotes KwaZulu-Natal as a premier investment destination and facilitates trade by assisting local companies access international markets. Manyakanyaka said it identified, developed and packaged KwaZulu-Natal investment opportunities; provided a professional investment promotion; branded and marketed KwaZulu-Natal as a destination; retained and expanded trade activities and linked opportunities to communities’ developmental needs.
Interesting Facts Since the year 2012, Jozini Tiger Lodge has seen a staggering revenue increase of 117%, due to increase in conferences, weddings and day visitor business.
Jozini Tiger Lodge at a Glance The Jozini Tiger Lodge is situated in the heart of the Zulu Kingdom with its rich heritage and untamed natural beauty, Jozini Tiger lodge and Spa is the perfect getaway in the heart of nature based under the UMkhanyakude District Municipality. It is easily accessible from Durban and Gauteng. The lodgeâ€™s location is ideal for those looking to access Swaziland, the Kruger National Park or Mozambique , all of which are close proximity to the Lodge. Nathi Thusi, Alex Shazi and Albert Lourens, in partnership with the National Empowerment Fund, developed this property at the Jozini Dam, hoping to stimulate the economy and support the region, which is recognised as one of the poorest areas in the province of KwaZulu-Natal.
Built in January 2008 and completed in December 2009. The lodge was officially opened in March 2010, just four months before the 2010 Soccer World Cup. Originally built on an old hotel site, which had closed down some 30 years earlier, it has 70 rooms, conference venues, spar and wellness centre, swimming pool, steam room, gymnasium and more. Since the year 2012 the lodge has seen staggering revenue increase of 117%, due to increase in conferences, weddings and day visitor business. The Key Stakeholders are hands on, have a keen & shown interest in the long term growth & sustainability of JTL in particular & the area of Jozini in general. Assurance by Municipality that Jozini is a Premium Investment Destination for tourism & other sectors.
Situated in the heart of the Zulu Kingdom, with its rich heritage and untamed natural beauty, Jozini Tiger Lodge & Spa is the perfect luxury getaway in the heart of nature.
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Ikusasalentsha High School was established in 1988, It has been operating as a primary school until 2013 when the Department of Education transformed it into a high school.
Changing lives at Inanda Durban Trade & Investment KwaZulu-Natal (TIKZN) is not only at the forefront of promoting the province as a premier investment destination, but believes in changing lives of ordinary people by making contributions to various sectors where they can render a difference. On April 16, 2015 the organisation demonstrated that commitment, heading into Inanda to contribute and add value to the learners at Ikusasalentsha High School. “We can change lives by impacting in sectors like education for the betterment of the people of KwaZulu-Natal,” TIKZN chief executive officer Zamo Gwala said. Championed by the marketing and communication business unit, TIKZN’s corporate social investment aims to give back to the province’s communities through various aspects. In this case, the organisation donated 15 laptops to the school, underpinning the importance placed on information communication and technology (ICT) in the learning environment.
In pictures attached is Mrs Nomthandazo Sikosana the principal for Ikusasalentsha High School.
Gwala said both teachers and learners could benefit from being exposed to ICT and the opportunities this technology provided. “ICT has the potential to bridge the gap that exists in science teaching and learning due to the shortage of teaching aids and equipment, especially in underprivileged schools. Correspondingly, the role of guidance and mentorship when learners are choosing the correct streams from as early as Grade 10 cannot over-emphasised,” he said. In expressing her gratitude and appreciation, school governing body chair Velisiwe Jali highlighted the significance of computer literacy for learners. Essentially, the shortage of resources in a learning environment significantly disadvantaged learners from underprivileged schools.
In the above picture is the teaching staff of Ikusasalentsha High School, and TIKZN officials during the handover session.
Rooted in their foundation years of education, it had a negative ending when those children reached a tertiary education level. “Even undergoing a process of writing a learner’s license, one requires at least some basic knowledge and understanding of computer literacy,” she said. She also indicated that virtually every research conducted in Inanda brought to the fore unemployment as a key issue requiring attention by community leaders and authorities. Thereafter followed the worrying rate of HIV/Aids and the increasing percentage of child-headed households as leading factors of social ills within the community. Founded in 1988, Ikusasalentsha High School operated as a primary school until three years ago when the KwaZulu-Natal Department of Education transformed it into a high school. There are currently 770 learners from Grade eight to 10 and 18 teachers.
The second picture is Mr Bukhosibakhe Dlamini the Deputy Principal for Ikusasalentsha High School.
Interesting Facts Interesting Fact
MAJOR EVENTS 2015 SEPTEMBER
World Routes Africa ICC Durban
Export Week Durban
Africa Ports Evolution 2015 ICC Durban
SAIBPP Southern Sun Elangeni
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