Every kind of business
Every kind of business is turning to renewables. The Creighton Valley Cheese Company has been solar-powered since 2020. In 2023, Premier Nomusa Dube-Ncube said that, in addition to the R97-billion Eskom project, the following facilities would be established at the deepsea port: • Mabasa Energy and Fuels, R10-billion • NFE BGE Gas Supply, R25-billion • Phakwe RBGP, R34-billion An earlier announcement on the energy front by President Ramaphosa that private investors could generate up to 100MW without having to go through a tangled web of licence procedures was a boon for the province’s larger companies. The likes of Sappi and Mondi produce great quantities of biomass waste and all of the province’s sugar producers are potentially generators of electricity. Many of them already are producing power for their own use, now they can sell it to the grid. The signing of a long-term contract for energy supply by Eskom and South32 for its Hillside Aluminium smelter was another very welcome step in the energy field. The deal expires in 2031. In the oil and gas sector, the big issue of SAPREF, South Africa’s largest crude oil refinery which suspended operations in 2022, has been solved in the sense that the Central Energy Fund has purchased it. However, whether it will return to refining oil is an open question. Conducive environment The province’s existing infrastructure, good soils and fine weather provide a solid base for a varied economy. KwaZulu-Natal has significant capacity in heavy and light manufacturing, agro-processing and mineral beneficiation, all of which is supported by South Africa’s two busiest ports (Richards Bay and Durban), the country’s most active highway (the N3), a modern international airport and pipelines that carry liquids of all types to and from the economic powerhouse of the country around Johannesburg in the interior. Mondi and Sappi, two global giants in forestry, paper and packaging, have a significant presence in KwaZulu-Natal. Tourism is a key sector in the KwaZulu-Natal economy and provides livelihoods to many thousands of families in urban and rural areas. The closing of borders brought real hardship to many areas. A number of flights have been resumed to King Shaka International Airport by the likes of Turkish Airlines and a new flight has been inaugurated by SA Airlink, connecting the province to Zimbabwe. The provincial government is working on an investment pipeline, through the Special Economic Zones (SEZs), of R22-billion. The SEZs at Richards Bay and King Shaka International Airport (the Dube TradePort) are key components of the strategy and are now well-established nodes of investment. Milestones have been reached in the plan for creating further SEZs to focus on leather and textiles. A business case has been completed by units within the provincial government and land at Ezakheni (Ladysmith) in the uThukela District has been identified and secured. Dube TradePort will be the SEZ operator and R780-million in investments has been pledged by companies keen to relocate to the SEZ. To spread the benefits of the SEZ, the concept of “The Textile Belt” will be followed. The corridor approach will leverage comparative advantages of various regions in the clothing and textile value chain. ■ KWAZULU-NATAL BUSINESS 2024/25 8 PHOTO: SolarSaver
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