Page 19 - 2019\20 KZN Top Business Portfolio - EBOOK

Blue Economy Industrial development is the anchor of the KwaZulu-
Africa’s busiest and largest ports, Durban and Natal economy and its growth is fundamental to
Richards Bay handle 78% of South Africa’s cargo the creation of employment opportunities that will
tonnage, so KwaZulu-Natal as a province is very reliant contribute to inclusive economic growth in the province.
economically on the maritime sector. The top five manufacturing industries in the province,
The Blue economy is underpinned by Operation in terms of employment, are clothing, textiles and
Phakisa Oceans Economy, which aims to unlock the footwear; food and beverages; basic iron, steel and
economic potential of South Africa’s ocean economy metal products; chemicals and plastic; and paper
and fast track the achievement of the National and publishing.
Development Plan 2030 goals. The KwaZulu-Natal Major players in the KwaZulu-Natal manufacturing
Provincial Integrated Maritime Strategy goal is to direct sector include: Unilever, Engen, Sapref, Mondi, Sappi,
the province with respect to the priorities to broaden Aspen Pharmacare, Corobrik, Constantia Afripack
the developmental scope of the ocean economy. and Hulamin to name a few.
The boat building and repair industry presents The Durban South Basin is a key manufacturing and
opportunities for economic growth and job creation, industrial zone of the city, contributing a major part of
given its labour intensity, strong linkages to industries Durban’s Gross Domestic Product and providing 10%
such as steel manufacturing, as well as enhances skills of the country’s manufacturing jobs.
development.
KwaZulu-Natal is a significant producer of vehicles and
The Port of Richards Bay has been identified through components (e.g. Toyota, Volvo, Desmond Equipment,
Operation Phakisa as being strategically positioned to MAN, Bell).
undertake ship/rig repairs given its proximity to oil and
gas finds in Africa. The KwaZulu-Natal provincial government is to support
the automotive sector by establishing an automotive
Durban boasts the largest and busiest ship repair facility supplier park in Durban. The development is designed
on the South African coast and one of the most efficient to build about 200 mini factories, encompassing a
in the southern hemisphere. Operation Phakisa has variety of options from smaller light industrial units,
resulted in high quality maintenance and repairs to the to large warehouse unit, commercial offices and
ship repair facilities at the Port of Durban, with millions transport and logistics facilities.
of rands having been invested in these facilities.
The park will primarily serve the Toyota car
Over the past few years, Southern African Shipyards manufacturing plant in Prospecton, being a centralised
has built eight new harbour tugs for Transnet National hub for original equipment manufacturers (OEM)
Ports Authority (TNPA), which have been distributed supplying Toyota with products that make some of
among South African ports as needed. The contract their vehicles.
created approximately 200 additional jobs and more
than 60 apprentice artisans in training as well as three Paper and forest products group Sappi is considering a
marine engineers. The company has recently been further expansion of its giant Saiccor dissolving wood
commissioned to build a R700 million 143-metre-long pulp mill in KwaZulu-Natal, having only recently made
barge for the private company, DNG Energy, which the decision to invest R7.7 billion to expand output
was at the forefront of the Liquefied Natural Gas at the mill by 110 000 tonnes per year. This project is
revolution. This mega project is expected to operate scheduled for completion by mid-2020 and, at peak,
in Southern African waters transporting energy to some 5 800 people will be employed in construction
South African and Southern African Development activities. The expansion will also result in a 9% rise in
Community customers. permanent jobs at the mill, which currently employs
some 1 300 people.
The construction of the new R200 million Durban
Cruise Terminal will set Durban and KwaZulu-Natal to Further new investments in the province within the
maximise South Africa’s share from the growing global next five years include Toyota (R40 billion), Sumitomo
cruise tourism industry. The new terminal will be a Rubber (R1 billion), and Mondi (R8 billion). These
world class state of the art building accommodating investments in upgrading manufacturing plants are
cruise vessels. expected to enhance existing production capabilities.
Manufacturing Infrastructure, Development and Construction
After Gauteng, KwaZulu-Natal’s diversified manu- Development succeeds where there is good infra-
facturing sector is the second largest in the country structure. The KwaZulu-Natal government recently
with almost 30% of South Africa’s manufactured announced that it will spend more than R13 billion
exports produced in the province. on infrastructure projects to stimulate growth and

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