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KwaZulu-Natal Business 2022-23

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The 2022/23 edition of KwaZulu-Natal Business is the 14th 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 national government’s campaign to encourage private investment in ports. The vital role of the ports of Durban and Richards Bay in the South African economy cannot be understated and putting them in a better position to deal with commodities and cargoes of every sort is clearly in the national interest. A special purpose vehicle is to be created within Transnet to make dealing with private companies less complicated. The increasing importance of the Oceans Economy to the future of the provincial and national economy is relevant to any examination of the economy of KwaZulu-Natal. This applies as much to trade and ship-repair as it does to the exciting gas discoveries which have been made off the coast of Mozambique and South Africa.

OVERVIEW Energy

OVERVIEW Energy eThekwini plans to sign up independent power producers. The eThekwini Metropolitan Municipality has entered the field of renewable energy provision with the publication of its eThekwini Integrated Resource Plan (EIRP). This document outlines the steps the city will take towards its cleaner energy goals. Before launching a bidding process for independent power producers, the municipality will formally adopt the energy policy as a council and then assess the market. Goals include being carbon neutral by 2050 and having renewable energy provide 40% of the metro’s power by 2030. Food packaging and processing company Tetra Pak has also set ambitious goals when it comes to energy. A new plant being built in Pinetown has reduced carbon emissions, which will help the company on its way to carbon neutrality by 2030. New technology is being used at the plant which will advance the goal of using sugarcane to produce a bio-based plastic. Illovo Sugar SA is keen to produce biofuel and bio-energy and at the company’s Eswatini mill, Ubombo, it has a commercial supply agreement with the Eswatini Electricity Company. The province’s other sugar giant, Tongaat Hulett, produces between 12MW and 14MW of power at its mills and believes that the national sugar industry could generate between 700MW and 900MW. A 17MW biomass project represents the province’s only approved project in terms of the national Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). An open cycle gas turbine plant at Shakaskraal in the iLembe District Municipality can be converted to gas-fired technology, a method which energy planners are encouraging. The 670MW plant came on stream in 2017. Its project company, Avon Peaking Power, is jointly owned by a community trust, Mitsui (Japan), Legend Power Solutions (South Africa) and ENGIE of France. As 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. Khanyisa Projects has set up 26 biodigesters which produce gas for ONLINE RESOURCES National Department of Energy: www.energy.gov.za National Energy Regulator: www.nersa.org.za South African National Energy Development Institute: www.sanedi.org.za SECTOR INSIGHT The iLembe District is an Industrial Economic Hub (IEH) for the renewable energy sector. The Avon Peaking Power Plant in the iLembe District Municipality. Credit: ENGIE Peakers Operations cooking at Ndwedwe in the iLembe District. The project forms part of the Working for Energy programme of the South African National Energy Development Institute (SANEDI) which promotes the use of sustainable clean energy in rural areas. The Richards Bay Industrial Development Zone (RBIDZ) has been named as the site for 2 000MW liquefied natural gas (LNG) plant in terms of national government’s gas-topower plan. RBIDZ is also the site of a new biomass plant. 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. ■ KWAZULU-NATAL BUSINESS 2022/23 36

Construction and property R6-billion business and logistics park for Umhlanga. OVERVIEW Investec Property is behind a major new development, The Brickworks, strategically located between the Port of Durban and King Shaka International Airport. The R2-billion first phase, on which construction will start in the middle of 2022, will see the old Corobrik factory site transformed into a business and logistics park. Once the project is complete there will be more than 450 000m² of leasable space. This investment is especially welcome for the property and logistics sector which was badly hit by the riots which took place in and around Durban in July 2021. A major milestone was reached in November 2019 when Durban’s beachfront promenade extension reached the harbour. This means that residents anywhere in the city can now step onto the promenade, from the harbour in the south to Blue Lagoon in the north. The project began in early 2018 and cost R400-million. According to the organisers of the 2019 KZN Construction Expo, infrastructure will attract more than R200-billion in investment over seven years and R35-billion will be spent over 15 years at the Port Waterfront development. The King Shaka International Airport and Dube TradePort are also attracting property investments. Two new industrial parks are being developed: Cornubia is part of a larger project near Umhlanga and Clairwood in Durban South will offer more than 300 000m² of A-grade industrial space. Tongaat Hulett Developments (THD) has for some years been rolling out a series of developments on land it owns north of Durban and it has launched the nTshongweni Urban Development on either side of the busy N3 highway west of the city. KwaZulu-Natal has a number of brick companies and four cement factories. Three of these are run by NPC at Simuma, Durban and ONLINE RESOURCES Construction Industry Development Board: www.cidb.org.za Master Builders Association KwaZulu-Natal: www.mba-kzn.co.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Valuers: www.saiv.org.za SECTOR INSIGHT Infrastructure spending is set to grow. Newcastle, and the company has a further six sites for concrete and two for aggregate. NPC is part of the Intercement group. Lafarge has several aggregate quarries and eight Readymix plants around the province. The company’s grinding operation in Richards Bay has closed. The Dolphin Coast continues to attract high-end investors. Seaton, The Bay, in Sheffield Beach Estate, north of Ballito and Simbithi Eco-Estate, distinguishes itself from its neighbours by offering direct access to the beach. Collins Residential reported R179-million in sales in two months in late 2020, for the first two parts of the development. Owners are expected to take up residence early in 2022. Further south, Zimbali is another estate holding its own in terms of value. ■ 37 KWAZULU-NATAL BUSINESS 2022/23

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