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KwaZulu-Natal Business 2019-20 edition

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  • Africa
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A unique business and investment guide to KwaZulu-Natal Province in South Africa. The 2019/20 edition of KwaZulu-Natal Business is the 11th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on the surge in investment in new tourism projects, from casino expansions to the building of a dedicated cruise-liner terminal. Another special feature surveys other large investments in a wide variety of sectors, showing the diversity and strength of the provincial economy. For monthly updates about the region, subscribe at https://www.globalafricanetwork.com/subscribe/ or visit our portal at https://www.globalafricanetwork.com/category/regions/kwazulu-natal/

SPECIAL FEATURE A

SPECIAL FEATURE A REGIONAL OVERVIEW OF KWAZULU-NATAL The oceans economy holds great promise in KwaZulu-Natal. By John Young Two of the most important ports in South Africa are at the heart of KwaZulu-Natal's central position in the nation's transport and logistics network. As the secondbiggest contributor (16%) to national gross domestic product (GDP) after Gauteng and a major manufacturer and exporter of goods, the KwaZulu-Natal province lends itself to potential investments in many spheres. A new national focus on trying to develop the country’s maritime potential is playing to KwaZulu-Natal’s strengths. KwaZulu-Natal province has a long coastline that stretches from Port Edward in the south to the Kosi Bay Nature Reserve in the north. The province's contact with the sea has brought obvious benefits: fishing, fine beaches enjoyed by millions of tourists, and two great ports – the Port of Durban and Richards Bay. These ports export vast quantities of minerals (mostly through Richards Bay) and manufactured goods (Durban) and serve as an important conduit for imports of all sorts. The Richards Bay Coal Terminal exports coal while the Port of Durban is the busiest port in Africa. However, planners want to increase the economic benefits that the ocean can bring. An Oceans Economy Review Workshop has come up with a range of subsectors that can help grow the provincial economy and invite foreign direct investment: • marine transport and manufacturing • offshore oil and gas exploration • aquaculture • marine protection and ocean governance • small harbours • coastal and marine tourism. Strategies to grow the Oceans Economy dovetail with plans to boost the capacity of the ports at Durban and Richards Bay and to explore for gas and oil in the Indian Ocean. Ship-building and ship repairs is an existing industry, but it is currently not very big. If oil rigs were to start visiting the KZN coastline on a regular basis, this industry will grow exponentially. The Oceans Economy is one of the focus areas that has been chosen by national government to be part of Operation Phakisa, a focused, goal-driven KWAZULU-NATAL BUSINESS 2019/20 10

SPECIAL FEATURE attempt to jump-start a specific economic sector. Overall, Phakisa intends creating a million jobs by 2033 and injecting R177-billion into national GDP. The decision to build a cruise-ship terminal at the Port of Durban is a good example of the kind of decision that dovetails with the vision for an Oceans Economy. Another big potential growth area in KwaZulu- Natal is energy. Several licences have been granted for off-shore exploration and the hope exists that something will be found – the vast gas fields off the coast of Mozambique are close. The King Shaka International Airport (with its own trade port and industrial development zone called the Dube TradePort) is another of the province's logistics key points, which has the potential to boost the regional economy in several sectors, particularly agricultural export and tourism. The province's other zone is the Richards Bay Industrial Development Zone (RBIDZ). In recent years, investments into the RBIDZ have included: a titanium plant (R4.5-billion); a biomass plant (R2- billion); a pipe manufacturing plant (R300-million); paint manufacturing (R16-million); and logistics services (R20-million). In the base-metals and metal-products sectors, giant companies such as BHP Billiton, Hulamin, Arcelor Mittal and Assmang have a big presence in the province. Steel, iron and aluminium account for nearly a third of exports followed by metal products. The third sector making a big contribution is the automotive and automotive components sector, with about 18%. Chemicals is the other major export driver. Toyota and Bell Equipment play a vital role in the automotive sector while the Engen Oil Refinery, paper and packaging group Mondi and dissolving pulp manufacturer Sappi are among other strategically important entities in the provincial economy. Sappi's export of dissolving pulp makes it a world leader in its field. Although the forestry and paper sector and the sugar sector are grounded in the agricultural sector, the leading companies' processing plants and downstream beneficiation also make them major components of the manufacturing sector and big contributors to the province's export basket. In addition, Tongaat-Hulett is a major property company and Illovo is a continental leader in sugar production. Tourism Tourism plays a vital role in the economy of the region, with the conference and events sector supported by excellent facilities. The jewel in the crown is the huge Albert Luthuli International 11 KWAZULU-NATAL BUSINESS 2019/20

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