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Great Infrastructure and Exciting Future Plans
KwaZulu-Natal Business: Grant Adlam
There are plenty of reasons to do business in KwaZulu-Natal (KZN). One of nine South African provinces, KZN has historically been a key component of the South African economy. The province is a prosperous and vibrant region having an advantageous location, abundant resources, effective infrastructure, stable governance, a thriving economy and an excellent lifestyle.
Location
Of major significance to the success of the region is KZN's position on the eastern coast of South Africa. The two ports of Durban and Richards Bay, positioned on the Indian Ocean seaboard around which KZN is established, are both gateways to the sealanes of the world. Durban and Richards Bay ports are southern Africa's busiest in terms of handling cargo by value and bulk respectively. The ports provide a competitive advantage and effectively position the region to increase its share of the global market.
Stability
Under the leadership of Premier Dr Zweli Mkhize, the provincial government is committed to providing stability, effective governance as well as service delivery. According to the findings of the Afrobarometer 2011 report, the residents of KZN gave Premier Mkhize a rating of 72%, which puts him ahead of most of his counterparts. Remaining in touch with the community, and in particular leadership structures such as councillors, mayors, religious, business and traditional leaders has ensured that the confidence of the people in their Premier and his team is strengthened. The government of KZN recognises that investment is critical to the growth of the provincial economy and aims to ensure that an environment conducive for investment to thrive is created.
Great Infrastructure and Exciting Future Plans
KZN's well-developed infrastructure includes roads, railways and telecommunications, a sophisticated commercial and financial business structure, complemented by a full spectrum of professional services. Premier Dr Zweli Mkhize in his 2012 State of the Province Address stressed the critical role of the transport and logistics sector in the economy. He stated that the provincial government would be, "paying particular attention to issues of harbours, road, rail and air transport since their efficiency constitutes our competitive edge."
Some of the infrastructure plans in the State of the Nation Address by South African President Jacob Zuma 2012 will also help to grow KZN. These plans include improving the Durban-Free State-Gauteng logistics and transport corridor, expansion of the ports as well as lowering port tariffs. The plans for a huge dug-out port on the site of the old international airport, to expand the city port capacity, will become a major boost to investment in the province. An inland dry port at Cato Ridge is also proposed, which will be an asset to the Durban-Gauteng transport corridor.
In addition, the government of KZN budget plans include various projects for much needed public infrastructure delivery including housing, schools and health facilities. These programmes not only improve services but will benefit local suppliers and boost the construction sector enormously.
Rich Resources
KZN's sub-tropical climate, excellent annual rainfall and some of the most fertile land in the country makes the province the national leader in several agricultural products. Although KZN covers a small portion of South Africa's land area, a significant percentage of the country's small-scale farmers are based here. The midlands area between Pietermaritzburg and the Drakensberg has a concentration of vegetable, dairy and stock-farms. The KZN coastal belt yields sugar cane, wood, oranges, bananas, mangoes and other tropical fruit. Forestry in the areas around Vryheid, Eshowe, Richmond, Harding and Ngome is another major source of income. Key forestry companies operating within KZN include Mondi, Merensky, NCT Forestry Co-operative Limited and Sappi.
Agriculture is a labour-intensive sector, which is especially relevant in a provincial context of high unemployment. In line with this thrust, the identification of crops and the creation of opportunities for SMME agribusiness prospects are of importance.
KZN's mineral sands and coal mines are a small economic sector underpinned by companies such as Richards Bay Minerals and Petmin. A current focus on the mining value chain is expected to play a key role in the country's industrialisation programme. The aim of the programme is to drive economic growth through increased beneficiation of minerals. The government is playing a vital role in encouraging the growth of smaller entrepreneurs by offering incentives to large mining companies using services and products of smaller companies at the upstream stages of the value chain.
Superb Economic Growth Rate
The KZN economy is the second largest contributor to South Africa's GDP after Gauteng. There is evidence that the regional economy may have outperformed national growth towards the end of last year. The KZN Barometer, compiled by Mike Schussler of Economists.co.za reported in Decem-ber 2011 that the provincial economy grew by 6.5% year-on-year. "Although growth began to level out by the middle of last year, the provincial economy is in no way losing steam," said Schussler.
The results of recent research by Clive Coetzee on the KZN Economy - A Risk and Conditions Monitor May 2012 suggest that the economic risk in the province during the first four months of 2012 have decreased consistently and that the economic conditions in the province have improved. This should support the economic outlook for the province. However, he reported that variables such as inflation, oil and sugar prices as well as electricity costs will affect growth in the province.
A strongly performing regional economy is well correlated with the performance of the business support services sector. For companies to function efficiently, service providers need to provide effective business support. Many of the sub sectors such as finance, real estate and business services, and wholesale and retail trade are amongst the top performing sectors of the province's economy.
After Gauteng, KZN's diversified manufacturing sector is the second largest in the country with nearly a third of South Africa's manufactured exports produced in the province. Large, globally competitive manufacturers operate in the province in industries involving automobiles and automobile parts, forestry products, petro-chemicals, food and beverages, steelworks metals as well as clothing and textiles. These manufacturers are represented by Arcelor Mittal, MacDonald Holdings, BHP Billiton, Hulamin, Safal Steel, Tata Steel, Sappi, Mondi, Foskor, Engen and Unilever, which are of some of the major contributors to the economy of the province.
Major automotive companies including Toyota, MAN Truck and Bus SA, Volvo Trucks and Bell Equipment operate in KwaZulu-Natal, with many secondary suppliers providing individual components or raw materials to the manufacturers of components or sub-assemblies for motor assembly plants. The Maritime Vessel Construction and Repair (MVC&R) sector, also known as the ship building industry, is vast and fast evolving. Durban boasts the largest and busiest ship repair facility on the South African coast and one of the most efficient in the southern hemisphere. The firms of Elgin Brown & Hamer, Southern African Shipyards and Dormac Marine each have their own fully equipped repair quays including heavy cranes and machine shops to handle almost any job.
KwaZulu-Natal provides nearly a third of South Africa's plastics demands. The industry uses 150 000 tons of polymer a year and consists mainly of SME enterprises plastics still remain cost-effective products and a vital component in the packaging industry. The Chemical industry is well developed with numerous SME enterprises along the value chain. The sectors that enjoy substantial investments into the chemical industry are paint, agricultural chemicals, plastics and synthetic resins. (Source Deloitte KZN Economic Sectoral Review 2011)
KZN transport and logistics sectors has enormous importance as it links SA's largest market, Gauteng with global traders. KZN's transport and logistics services encompass sea freight and land based operations such as dry and liquid bulk terminals, intermodal solutions, pipeline, rail, air and port operations and all facets of traditional and specialised logistics. To increase port efficiency Transnet Port Terminals, has recently rolled out the new NAVIS Sparcs N4 terminal operating system, which operates multiple marine and rail terminals from a central server.
There are many substantial, well-managed private road transport companies handling all types of freight. The KwaZulu-Natal Business Barometer 2012 reported that:
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Land transport, which includes rail and road freight was up 11.8% year-on-year
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Countrywide rail transport grew by 15% and in KwaZulu-Natal most of the growth was driven by the transport of coal.
Of note increased road freight is being driven by the increase in the transport of consumer goods destined for neighbouring countries in the southern African region through KwaZulu-Natal and other provinces of South Africa.
Local and international shipping lines such as Grindrod under the banners of Island View Shipping and Unicorn Shipping, Safmarine and Mediterranean Shipping Company are major seafaring companies. Cruise Tourism is a burgeoning niche market and liners such as the Queen Mary, MSC Sinfoni, MSC Melody, and others are popular visitors to our shores.
Despite the increase in transport volumes, communication still remains the driver behind KwaZulu-Natal's transport and communication index as the internet, data and knowledge revolution continues.
Countrywide cell phone minutes used increased by 24.6% year-on-year, while unique local browsers increased by 17.4% (The KwaZulu-Natal Business Barometer 2012).
Economic Distribution
eThekwini Metropolitan (Durban and surrounding towns) is the economic powerhouse of the province. The GDP generated ranks eThekwini as the second largest economic centre behind Johannesburg in South Africa. eThekwini is not only an investment capital, a tourism and leisure centre, an international logistics management centre, retail node, but also a cultural and entertainment hub. Currently, the municipality is a substantial administrative centre, providing key public services within the metropolitan area as well as to the wider region.
KwaZulu-Natal's textiles and clothing sector continues to be an important employer. Two international safety-footwear firms operate out of Pinetown: Beier Industries and Bata Industrials. Pietermaritzburg is also known as a centre for carpet manufacture, with Belgotex Floorcoverings having the largest facility in the southern hemisphere at 155 000 square metres. The KwaZulu-Natal Clothing and Textile Cluster (KZNCTC) has established a Sector Business Support Centre in Newcastle, aimed at regenerating the area's clothing and textile industry.
The impact of the King Shaka International Airport is particularly evident in the growth of Ballito, adding to its status as the fastest growing node in the country. New investment in commercial and residential property developments along the north coast is apparent. The iLembe District Municipality is particularly active in seeking out new investors.
Along the south coast Ugu District Municipality future plans include upgrading Margate's airport, Port Shepstone's beachfront and the establishment of a flagship hotel and conference centre amongst others. Sisonke District Municipality's new steam train is set to become a tourism draw card to the region.
Zululand is a popular destination for wildlife and birding tours. The region is also rich in Anglo-Boer War and Zulu history.
In uThungulu, Richards Bay's port, coal terminal, aluminium smelters and mining houses drive the local economy. In addition the Richards Bay Industrial Zone will assist in attracting investment to the region.
The Pietermaritzburg/ Msunduzi area in Umgungundlovu District Municipality is ideally positioned along the N3 national highway corridor to Gauteng. The city is a base for manufacturing, particularly aluminium, chemicals, food, furniture, timber and leather products. Many major companies, like Alltube, Willowton Oil and Hulamin have established themselves in the vicinity and further opportunities exist. Apart from a hub of governance, the city is a regional centre for impressive sports events, outdoor festivals, shows, education, and the arts such as the Royal Show, the Hilton Arts Festival, Art in the Park and Cars in the Park.
In Amajuba, the town of Newcastle's major activities are coal mining, steel processing and manufacturing. Some old coal mines are being reopened to meet South Africa's power stations' demand for the fuel. This will have a knock on effect of regenerating the economy of this region. The new regional shopping mall in Newcastle will also assist in growing the town's economy.
Special Economic Zones
Mr Mike Mabuyakhulu MEC of the KZN Department of Economic Development and Tourism reported in Budget Speech 2012 that KwaZulu-Natal is actively applying the newly released Special Economic Zones (SEZ) Bill, to proactively exploring opportunities to decentralise industrialisation in the province. The introduction of SEZs will assist in furthering government's strategic objectives of broad based industrialisation, regional development and job creation. Potential areas for locating special economic zones in all the district municipalities of KwaZulu‐Natal have been identified in each of the district economies in terms of their comparative advantages; industrial capacity, available infrastructure, sectors of dominance, locational advantages, and local skills. These have been identified as follows:
eThekwini Metro
Auto supplier park zone
Centre of excellence hub in techno parks (solar, wind turbines and biofuels)
uMgungundlovu
Leather and Creative Industry hub
uThukela
Electronics hub which will lead the migration process from analogue to digital
Amajuba
Clothing and Textile hub
uMkhanyakude
Agricultural mechanisation hub ranging from affordable basic to technologically sophisticated implements.
iLembe
Renewable energy (solar, wind turbines)
Zululand
Agro‐processing and value‐adding industries for export market.
Plans are at an advanced stage to establish biggest abattoir in the province which will amongst other things process pork, lamb, beef and dairy products.
uMzinyathi
Coal deposit and mining hub; including the downstream processing of coal materials to produce biofuels and expensive paper products.
Ugu
Commodities geared towards the Indian markets (high value materials such as dried grains - lentils, peas, etc).
Sisonke
Timber related industries
uThungulu
Richards Bay Industrial Development Zone will be incorporated as an SEZ to broaden its industrial developmental scope.
Incentives
The importance of incentives such as water, electricity, and availability of serviced industrial land in making SEZs a success has been recognised and are being put in place. In addition, tax incentives have been proposed in the bill which will enhance the attractiveness of the hubs to potential investors.
Great Lifestyle
KZN attributes including sunshine and a relaxed lifestyle offer an unmatchable combination of assets. The province is the market leader for domestic tourism in South Africa, as well as is number two in term of international tourism. KZN has great accommodation facilities, excellent beaches, game parks with the big five and splendid mountains. KZN boasts two World Heritage Sites - the iSimangaliso Wetland Park and the uKhahlamba Drakensberg Park.
The scenic and majestic Drakensberg mountains remain a powerful drawcard for tourists.
As such a detailed feasibility study for a cable car is about to get under way. The location proposed is in Mnweni Valley near the Royal Natal National Park and the summit station would be in Lesotho. The cable length would be three kilometres.
The World Cup in 2010 and the hosting of COP17 in December 2011 helped to shine the spotlight on KZN's assets. These, in addition to the annual Tourism Indaba serves as an awesome reminder to event planners of just how well the province hosts events. Highlights in 2012 include the International Wildlife Management Congress; the Travel Agents Federation of India Congress, The Sport and Events Exchange and the Top Gear Festival. The cumulative economic impact of these events is expected to exceed some R100m and attract many thousands of business and leisure tourists to our regional economy.
The excellent KZN climate allows many sport and leisure opportunities and a range of business opportunities has grown to meet the demand of these markets. A current provincial strategy focuses on ensuring that world class events are attracted to KwaZulu-Natal, which reinforces our passion for sport, art and culture. The Moses Mabhida Stadium is undeniably a defining landmark of Durban's skyline. The stadium is not only a tourist attraction in its own right, but also the centrepiece of the King's Park Sporting Precinct.
Famous international sporting events hosted in the province include the Comrades Marathon, the Duzi Canoe Marathon, the Mr Price Pro Surfing Competition, the Midmar Mile (the world's largest inland ultraswim), Vodacom July Handicap Horse Racing (along with its trendy fashions), the Amashova and Tour Durban cycle races as well as test matches in rugby, crick-et and soccer attract spectators and interest globally.
Durban's central beachfront upgrade has transformed Durban's renowned beachfront into a feature of which the city can be justly proud. The promenade provides kilometres of uninterrupted sea views, restaurants and other amenities to the benefit of all. Visitors to the beachfront will be greeted by the sight of walkers, joggers, bikers, kids playing football or beach volleyball as well as fisherman, surfers and swimmers. Landscaping has played an important role in Durban's beachfront upgrade programme and involves protecting and re-establishing the beach dunes by adding and preserving plant life, both on the dunes and along the promenade.
Growing Further
Currently a major theme is that of developing synergy between the more and less developed sectors of the local economy and between the public and private sectors through partnerships. A number of projects
are at different stages of development around the province and face different challenges. All role players in the economy need to commit themselves to working in cooperation towards the objectives of inclusive sustainable economic growth.
KwaZulu-Natal's business environment is strong and offers many opportunities for growth and innovation.
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KwaZulu-Natal: A Gateway to Africa
COMPETITIVE ADVANTAGES
KwaZulu-Natal (KZN) enjoys a number of competitive advantages in terms of location and infrastructure that positions the province as a logistics platform, a premier international business investment destination and an idyllic tourism destination, which will ensure its success.
Durban is the busiest port on the continent and Richards Bay manages the biggest volumes of cargo in South Africa. As a consequence of the location of the two ports, Durban and Richards Bay have developed into major cities. These links make KZN a crucial gateway to South Africa, the South African Development Community region and the rest of Africa. The ports provide a key competitive advantage and effectively position the region to increase its share of the global market.
Richards Bay Port
Richards Bay anchors the country's largest harbour, the world's largest coal export terminal and numerous giant industries and operations. Since its opening, the Port of Richards Bay has expanded rapidly with the establishment of one new berth every second year on average, proudly fulfilling its aim of making it South Africa's leading port in terms of cargo volumes. To ensure the port remains as competitive and efficient as possible, Transnet Port Terminals has set aside sustaining capex of R3.7 billion. The investments to be fast-tracked in the 2012/13 financial year include mobile equipment, quayside equipment and weighbridges. Also included are safety critical projects as well as environmental and legal compliance projects.
Adjacent to the port, the newly licensed Richards Bay Industrial Development Zone (RBIDZ is located on the national N2 freeway linking Durban and Richards Bay. The RBIDZ is strategically positioned making it an all-in-one official gateway to emerging African markets as well as to Gauteng.
Durban Port
Durban Port is home to two of the region's busiest container terminals, the Durban Container Terminal (DCT) and Pier 1.
The port is South Africa's premier container, vehicle and liquid bulk port, and provides break bulk and MPT, dry bulk, ship repair, cruise liner, navy, fishing and recreational facilities. The R300-million harbour entrance widening project was completed in March 2010. The project widened the entrance from 120m to 220m and deepened it from 12.8m to 19m at its deepest point. This new width allows 9 000-TEU container vessels to safely navigate the entrance. Some of the major capacity creating projects to be embarked on by Transnet Port Terminals until 2018/19 will include:
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Durban Container Terminal Pier 1 expansion which will increase the capacity of the terminal from 700 000 TEUs to 820 000 TEUs by next year and eventually 1.2 million TEUs by 2016/17
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Extension of the North quay at Durban Container Terminal Pier 2 which will help increase the capacity from 2.1 million TEUs in 2011/12 to 2.5 million TEUs by 2013/14 and 3.3 million TEUs by 2017/18
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Container capacity is also being created in other terminals such as the Durban Ro-Ro and Maydon Wharf Terminal through the acquisition of new equipment, such as mobile cranes, and various infrastructure upgrades.
Dug-out Port
In addition, the Premier of the Province, Dr Zweli Mkhize has welcomed the signing of a deal between Transnet and the Airports Company of South Africa for the purchase of the old Durban International Airport for R1,8 billion.
The proposed dug-out port will provide berthing facilities of 16 container, five automotive and four bulk liquid berths. The initial cost includes basic port infrastructure and four container berths. Premier Mkhize said, "Our efforts aimed at positioning KwaZulu-Natal as a gateway to Africa and to the world have received a major boost following the signing of this deal. With the addition of the dug-out port, we have an important strategic asset."
The dug-out port will provide an increased basis for transportation and freight logistics facilities, enhancing KZN's competitive edge. Of significance is that the dug-out port, will greatly expand the capacity of KZN to import and export goods.
Premier Mkhize said that this, "Will provide an effective platform for forging trade linkages between provinces within the country, with neighbouring states and the rest of the world (particularly the Asian and South American subcontinents), offering the province considerable investment spin-offs and opportunities."
Durban Automotive Supplier Park
A strategic goal is to provide the logistics to ensure that the province's automotive industry doubles its size in the next decade, and that KZN becomes a leading exporter of vehicles. An investment of R 400m into an automotive supply park - the Durban Automotive Supplier Park (DASP) - has been planned. eThekwini Municipality, working with Toyota SA and various multi-national component manufacturers, plans to site the new development close to Toyota SA's plant in the Prospecton area.
Dube TradePort
Recent research on the maritime shipping industry has focused upon the emergence of more integrated logistics chains, both within the maritime industry itself and between maritime- and landbased transportation modes. Located 30 km north of Durban, the new Dube TradePort is a catalyst for global trade and a portal between KZN and the world. It is the only facility in Africa that brings together an international airport, a cargo terminal, warehousing, offices, a retail sector, hotels, and an agricultural area. The King Shaka International Airport (KSIA), comprising an international passenger and cargo airport, is intrinsic to KZN's growth.
KZN Economic Development and Tourism MEC Michael Mabuyakhulu said, "This new Airport City will create a worldclass physical and operational environment geared towards attracting trade, investment and infrastructure built in the Kwazulu‐Natal economy. This will require mass investment by both government and the private sector, with government in the lead." Premier Zweli Mkhize said the King Shaka International Airport had resulted in the province being a preferred destination for conferencing, tourism and leisure.
However, it is the "aerotropolis" proximity to the harbours of Durban and Richards Bay that give it the edge as a transport and logistics hub. The Dube TradePort will greatly expand the capacity of KZN to import and export goods. The new approach provides a cost-effective solution to create a vast logistics platform, offering a significant means to enhance international competitiveness and job creation.
Rail and road links up and down the coast to the two major seaports will make it easy to switch cargo between different modes of transport. The TradePort is bounded on the west by the railway line between Durban and Richards Bay and by the N2 highway to the east. A new road will be constructed to link the Trade Zone to the Watson Highway. This road will provide an additional level of access for the Cargo Terminal and Trade Zone to the N2 and R102 highways. Large quantities that arrive by sea can be dispersed in smaller volumes at speed by air to various destinations in Africa. The construction of a north to south light rail link has been identified as being important to improve transport connectivity between eThekwini and Ballito.
In essence, the Dube TradePort will effectively become a significant element in the further entrenchment of KZN's position in the global supply chain. Importantly, too, the advent of the Dube TradePort provides new and additional international air service opportunities. There is already significant airline interest, market potential, cost effectiveness and new revenue generation for those airlines willing to fly to the new international airport. Of note is that the SA Express has identified Durban as a base in which to grow its footprint into the Southern African Development Community (SADC) region. An agreement with the Dube TradePort will see the connection of King Shaka International Airport to the region, especially to Zimbabwe, Zambia, Botswana and Mozambique.
Dube TradePort has also pursued investment in the highly strategic aircraft Maintenance, Repair and Overhaul business. The objective is to position DTP as the hub for aircraft maintenance in Africa. Dube TradePort's Development Strategy will guide the development of the entire Airport City and create significant opportunities for all businesses. The Dube TradePort will also form an important part of the pipeline of development projects, one of which is the improvement of the movement of goods and economic integration through a Durban-Free State-Gauteng logistics and industrial corridor.
"The TradePort is also set to be Southern Africa's premier logistics platform, given that the Port of Durban provides connectivity to 53 international destinations and access to local distribution networks," said South African President Zuma at the recent official launch of the Dube TradePort. President Zuma added that the project is intended to connect the major economic centres of Gauteng and Durban/Pinetown, and at the same time, link these centres with an improved export capacity through our sea-ports and improved railway lines. An expected outcome is the stimulation of growth in the KZN Midlands, a major agricultural and industrial region through which this route will pass.
KwaZulu-Natal is indeed on the move and ready to meet the challenge of its position as a "Gateway to Africa" by rising high!
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KZN Overview- Grant Adlam
THE ECONOMIC OVERVIEW OF KWAZULU-NATAL 2011
2011-06-25
KwaZulu-Natal Overview: Grant Adlam
A Vibrant and Growing Economy
KwaZulu-Natal, one of nine provinces, has historically been a key component of the South African economy... continue reading ›
KZN: Doing Extraordinarily Well 2010
2010-07-22
Economic Review of KwaZulu-Natal- 2010
"Success is doing ordinary things extraordinarily well" (Jim Rohn)
The province of KwaZulu-Natal may be complimented on its many su... continue reading ›
kzn: The Evolution of KwaZulu-Natal -Grant Adlam 2009
2009-07-23
In 2009 the world celebrates the 200th birth anniversary of Charles Darwin and the 150th anniversary year of his seminal book, The Origin of Species.
Evolution is one of the most signif... continue reading ›
Archived
Most Popular
THE ECONOMIC OVERVIEW OF KWAZULU-NATAL 2011
2011-06-25
KwaZulu-Natal Overview: Grant Adlam
A Vibrant and Growing Economy
KwaZulu-Natal, one of nine provinces, has historically been a key component of the South African economy... continue reading ›
KZN: Doing Extraordinarily Well 2010
2010-07-22
Economic Review of KwaZulu-Natal- 2010
"Success is doing ordinary things extraordinarily well" (Jim Rohn)
The province of KwaZulu-Natal may be complimented on its many su... continue reading ›
kzn: The Evolution of KwaZulu-Natal -Grant Adlam 2009
2009-07-23
In 2009 the world celebrates the 200th birth anniversary of Charles Darwin and the 150th anniversary year of his seminal book, The Origin of Species.
Evolution is one of the most signif... continue reading ›
SERVICES SECTOR
The local services industry is the fastest growing sector in the local economy. A strongly performing regional economy is well correlated with the performance of the business support services sector. For the big players to function efficiently, service providers need to be operating effectively too. Many of the sub sectors such as finance, real estate and business services, and wholesale and retail trade are amongst the top performing sectors of the province's economy.
KwaZulu-Natal is deliberately positioning itself as a destination for call centres and business-process outsourcing. Investors are encouraged to invest in these sectors because of the low transport and infrastructure costs, the low attrition rate, excellent communications structure and global connectivity. The newly launched KZN BPO Park will include a plug and play Call Centre facility which investors will be able to use to fulfil their BPS needs. It will boast fully implemented call centre facilities and will cater for a maximum of 4000 call centre operators.
UNSURPASSED QUALITY OF LIFE
And if all the above reasons are not sufficient, there are even more advantages if you look, as the wider social fabric cannot be ignored. There is plenty of land, houses to suit most income groups, good medical care and education.KwaZulu-Natal offers an unmatchable combination of assets- sunshine, leisure opportunities, relaxed lifestyle, and a growing economy.
Pietermaritzburg in the Msunduzi Local Municipality is the capital city of the province. The "City of Choice" combines both style and vitality. Apart from a hub of governance, the city is a regional centre for impressive sports events, outdoor festivals, shows, education, and the arts such as the Comrades Marathon, the Duzi Marathon, the Royal Show, the Hilton Arts Festival, Art in the Park and Cars in the Park and international cycling events.
The Pietermaritzburg area is ideally positioned as a base for manufacturing, particularly aluminium, chemicals, food, furniture, timber and leather products. Many major companies, like Alltube, Willowton Oil and Hulamin have established themselves in the vicinity and further opportunities exist.
The Pietermaritzburg Airport Airlink service has recently doubled its flights to Johannesburg allowing for greater ease of access to the capital city.
eThekwini Metropolitan (Durban and surrounding towns) is the economic powerhouse of the province and a very promising global competitor. The GDP generated ranks eThekwini as the second largest economic centre behind Johannesburg. eThekwini is not only an investment capital, a tourism and leisure centre, an international logistics management centre, retail node, but also a cultural and entertainment hub. Currently, the municipality is a substantial administrative centre, providing key public services within the metropolitan area as well as to the wider region.
Recently many of KwaZulu-Natal's firms have moved their head offices to the La Lucia Ridge and Umhlanga area. Large corporations such as Unilever, Rand Merchant Bank, Discovery Health, Deloitte and Liberty Life have chosen the Umhlanga Town Centre as their address.
The impact of the King Shaka International Airport is particularly evident in the growth of Ballito, adding to its status as the fastest growing node in the country. The establishment of the iLembe Chamber of Commerce and Industry goes a long way to confirm the economic growth and potential of the region.
Ballito is experiencing major new developments and investment, including a new interchange off the N2 freeway where construction is well underway, and soon to be followed by a new four lane entrance into Ballito, which will ease traffic flow. The joint project between South African National Roads Association Limited (Sanral) and the municipality will see the improvement of the entrance to Ballito from the R102 up to the M4. Clive Greene, Pam Golding Properties' area principal said, "While Ballito remains primarily a holiday town, figures show that in excess of 50 percent of homes are now permanent residences and this is increasing rapidly as more and more residential developments come on stream as more people choose to move here."
The main Lifestyle shopping centre is being further expanded by approximately 3 000 m to incorporate an Edgars store, and two new shopping centres are also being built with Woolworths, Game, Checkers and Pick n Pay all taking up considerable space. In addition, the business park is almost complete with new businesses constantly opening their doors. Currently under construction, The Quarter, will include showroom, retail and office space and feature a piazza-style food area. The new complex will be adjacent to an 800-seater conference centre, the first dedicated venue of its kind in Ballito, which will be operated by the Signature Group. The aim is to attract both the business and leisure markets as well as service the needs of the proposed conference centre and its out-of-town visitors. The completion date is set for the end of November 2011.
At Blythedale a new town centre is presently going through town planning which should be launched within the next three years. The approximately R60 billion development is expected to offer shopping centres, hotels business parks and residential components.
uThungulu District Municipality on the north coast of Zululand in KwaZulu-Natal perceives tourism development in the area to be a key local economic development initiative. The upgraded Umfolozi Hotel Casino Convention Resort in Empangeni will be an economic draw card for the town.
 Tourism KwaZulu-Natal (TKZN) |
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