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 successes which have been achieved through a combination of good planning, hard work as well as the effective utilisation of the numerous natural resources that characterize the region.

The current provincial government under the leadership of Dr Zweli Mkhize is making progress in ensuring that the province's developmental needs are attended to in a proactive manner.

KwaZulu-Natal has a business-friendly environment with an informed financial system, strong investment ratings, efficient trade support facilities, and a huge emerging market. Despite a year of global uncertainty in 2009, South Africa's stable performance saw it hold on to its position as the 45th most competitive country out of 133, in the 2009/10 World Economic Forum's Global Competitiveness Index, making it the highest ranked country in sub-Saharan Africa.

KwaZulu-Natal's countless assets provide the basis for its many successes. Of major significance is that the ports of Durban and Richards Bay, around which KwaZulu-Natal is established, are two of Africa's gateways to the sea-lanes of the world. Currently 70% of the goods reaching Durban carry on to other provinces. The ports provide a key competitive advantage and effectively position the region to increase its share of the global market.

As a consequence of the location of the two ports, Durban and Richards Bay have developed into major cities. Other key towns in the province include Pietermaritzburg, Newcastle, Ladysmith, Margate, Kokstad, Pinetown, Port Shepstone and Umhlanga Rocks.

Success seems to be connected with action
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, 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, Belgotex Floorcoverings, Willowton Oil and Hulamin have established themselves in the vicinity and further opportunities exist.

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.

Richards Bay anchors the country's largest harbour, the world's largest coal export terminal and numerous giant industries and operations. The town is strategically positioned relative to inland markets and tourist attractions such as the iSimangaliso Wetland Park. The city is easily accessible via a dual carriageway from Durban to Pongola.

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. Transnet Port Terminals is preparing for the next economic boom by creating additional capacity at Richards Bay Port.

In the future, the new dual freeway road corridor between Durban and Richards Bay will stimulate growth by effectively linking to the two ports. Further development of the transport corridor, linking Durban to Gauteng, the inland economic heartland, means that Durban can supply Gauteng with a variety of manufactured goods. The overall aim is to integrate air, land and sea transport.

Investment in Infrastructure
"Success is the completion of anything intended"
Undoubtedly KwaZulu-Natal is undergoing the biggest investment in infrastructure in its history and success is evident in many of the projects' current completion.

Central to KwaZulu-Natal's logistics development is the new King Shaka International Airport (KSIA), which has been branded as the second-largest infrastructural project in the country. Research had indicated that the old Durban International Airport would be too small to handle the growing tourist and commercial trade through Durban.

To build an entirely new international airport is a remarkable event anywhere in the world and KSIA is no exception. The international airport at La Mercy has taken forty years from the original land purchase of 2 100 ha to become an operational entity. Of significance is that the KSIA is not just an airport but incorporates a 36-ha trade zone. The Dube TradePort will accommodate a cargo terminal that is the first of its kind for Africa, a perishables centre, ware-housing and light manufacturing facilities.

The multibillion-rand initiative will also contain commercial developments such as hotel and conference facilities, as well as service activities, residential elements, and a resource centre focusing on training workers to international standards. The existing Durban International Airport will be decommissioned and the land sold for development.

Engine for Growth
KwaZulu-Natal MEC for Economic Development and Tourism Michael Mabuyakhulu says that the new airport will serve as an engine for driving economic growth and development for the next 30 years, actively promoting resort development and tourism, as well as stimulating passenger and cargo growth, particularly the perishables sector and other low-weight, high-value manufacturing activities, with a view to stimulating greater international passenger and cargo demand. Dube TradePort is expected to attract industries such as automotive components, electronics, clothing and textiles, perishables and value-added logistics.

Similarly, National Council of Provinces delegation member, Alf Lees, said the project represents a "fantastic opportunity for boosting the economic growth and development of not just KwaZulu-Natal, but the South African economy as a whole." Lees further stated "When this is completed, it will be up to the private sector to look at taking advantage of the business and trade windows of opportunity that will be opened. I think we are all underestimating the economic catalyst that this new facility is going to create for us."

With more direct landing flights (mostly from the east) the airport will be well positioned for holiday air charter operations. Due to the commissioning of the Emirates Airlines to fly into Durban from Dubai, 9 000 international passengers arrived in December 2009. Tourism KwaZulu-Natal has forged a cooperative working relationship with both Emirates Airlines and Emirates Holidays.

The establishment of the KSIA has provided a major impetus for the growth of the KwaZulu-Natal north coast area. A comprehensive socio-economic study has shown that the development will generate 25 000 sustainable jobs with over 100 000 permanent residents in the surrounding area.

The impact of the KSIA is particularly evident in the growth of Ballito, which has historically been a tourism and retirement destination. Ballito has a number of secure gated estates catering for different levels of the market, from Zimbali Coastal Resort to Simbithi and Brettenwood. Modern shopping has come to Ballito in the shape of the Lifestyle Centre and Ballito Junction Shopping Centre. Ballito Business Park is the largest commercial enterprise along the Dolphin Coast, and the massive Ballito Office Park is under construction.

Clive Greene of Pam Golding Properties believes that, "If you're going to be anywhere in South Africa at the moment, Ballito is the place to be. Factories are already relocating to benefit from the cost-saving of being close to a trade port and efficient harbour system."

Says Ken Forbes of Tongaat Hulett, "Looking at the regional growth anticipated from the new airport - logistics hubs, business parks, offices, retail and residential opportunities - it looks as if the development is going to grow exponentially over the next five to 10 years. The seasonal aspects of local tourism will slowly be eliminated as more and more passengers and charter flights start coming directly into the region. The area east of the N2 freeway will mostly be utilised for tourism and upmarket homes, while the area west of the freeway will cater for clean industry - logistics hubs, business parks, offices and other residential needs. A new city will emerge, catering for all levels of investment needs, creating employment and providing residential opportunities across the full spectrum of the market."

According to Paul Izzard, co-developer of Imbonini Industrial Park between Ballito and Umhlali, "There's so much talk, so much whispering and so much anticipation... and yes, it's already happening! Businessmen are relocating their families to Ballito where they can enjoy the freedom of a secure lifestyle and excellent schooling while they commute to work in Gauteng during the week. Once the tradeport and airport are up and running, many of them plan on relocating their businesses to Ballito."

In line with the need for additional accommodation, Standard Bank is backing a housing project close to the new airport that will give families, who earn too much to qualify for government subsidies and too little to get bank loans, a chance to own a home. The first 100 residential units will be built this year and when the development is completed in about five years time there will be 3 500 homes in a 427ha site that will also include schools, retail space, light industry and 101ha of open spaces.

Durban Harbour Development Completed On Schedule
Durban is the busiest port in Africa, handling 38% of all ships calling on South African ports in 2008/2009. Durban is also home to two of the region's busiest container terminals, the Durban Container Terminal (DCT) and Pier 1. Its R300-million harbour entrance-widening project, which started in the third quarter of 2007, was completed in March 2010, one month ahead of schedule.

The project, which was commissioned by Transnet, widened the entrance from 120m to 220m and deepened it from 12.8m to 19m at its deepest point. This allows 9 000-TEU container vessels to safely navigate the entrance.

"This will result in significant cost savings and have a major impact on the South African economy," said Allan Wijnberg, director of design consultancy Prestedge Retief Dresner Wijnberg.

The project involved the dredging of eight-million cubic metres of sand to widen and deepen the entrance, and the reinforcement of existing structures.

Durban Port has been allocated a further R6, 5-billion over the next five years to meet continued growth in cargo demands by Transnet. Projects include the effective utilisation of land around the container port, back-of-port development, more efficient maintenance of equipment and the upgrading of all berths, including those at Maydon Wharf.

Moses Mabhida Stadium"To succeed you need to find something to hold on to, something to motivate you, something to inspire you" (Tony Dorsett)
A number of projects have been underway around KwaZulu-Natal as part of the province's role as a host of the FIFA World Cup 2010. The projects should have lasting benefits to the people of the province.

The newly completed 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. The multi-disciplinary aspect of the stadium's design allows a wide range of sporting and cultural events to be hosted, putting it on a par with other international venues such as the Stade du France and Wembley Stadium. The Moses Mabhida pitch has been designed to meet the requirements of major sporting bodies such as FIFA, International Rugby Board (IRB), and the South African Football Association (SAFA).

Durban's Transformation
The Central Beachfront Upgrade is a major project that will see Durban's renowned beachfront transformed into a feature of which the city can be justly proud. The current focus has been the extension of the promenade from uShaka Beach to Country Club Beach where a walkway will branch off leading to the Moses Mabhida Stadium.

The promenade will provide kilometres of uninterrupted sea views, restaurants and other amenities to the benefit of all residents and visitors.

City Manager Michael Sutcliffe stated, "Future generations will look back at this time and remark how important it was, how the projects and initiatives of the first decade of this century set Durban up as a world class city for decades to come. "None of this happened by chance. It's been the result of meticulous planning and a forward-thinking approach by eThekwini policy makers."

Other developments include Bridge City which is a R5.8-billion new town centre that is being created on a 60-hectare site 17 kilometres from the Durban city centre, bridging the communities of Phoenix and Inanda, Ntuzuma and KwaMashu and linking them into the urban system. The shopping centre was opened in October 2009.

Head of eThekwini's Economic Development Department, Shunnon Tulsiram, said, "The vision of Bridge City is to create a dynamic and well balanced urban precinct that will be a catalyst for economic growth in the region and will link communities to create a new town centre. The city has spent millions on infrastructure, creating new roads and interchanges and a transport hub for buses, trains and taxis. The development of the magistrate's court and other facilities such as the hospital are due to begin in the next few months."

Deputy Mayor Logie Naidoo, who chairs eThekwini's Economic Development Committee, said, "We are really excited at what this development means to the region. Just as the development of the Gateway shopping centre kick-started the development of Umhlanga Ridge, Bridge City will act as a catalyst to unleash the vast opportunity for social and economic improvement in this impoverished area."

The past five years has seen a move of some of KwaZulu-Natal's firms 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 new deve-lopments and the expansion of existing projects are set to continue. Tongaat Hulett's Umhlanga Ridgeside comprises 150 000 square metres of commercial and mixed-use space, 100 000 square metres of offices and 3 000 residential units. Ridgeside will attract an estimated R8 to R10-billion in investments to the area and generate 65 000 construction-related jobs and 16 000 permanent jobs.


A Vibrant Economy
Success: "The defining factor is never resources, it is resourcefulness." - Tony Robbins
The exceptional use of resources is apparent in the growth of the vibrant KwaZulu-Natal economy. The province is second only to Gauteng in terms of its percentage contribution to South Africa's GDP. During 2009 KwaZulu-Natal recorded positive growth at 1.3% compared to the national average rate of 0.9%. The Provincial Treasury of KwaZulu-Natal is forecasting an increase in the gross domestic product (GDP-R) of between 2.2% and 2.7% in 2010.

Although one of the province's strengths is that it has a diversified economy, four key sectors have been identified as the drivers of economic growth. These are:

• Agriculture and agri-industry.
• Industry, including heavy and light industry and manufacturing.
• Tourism, including domestic and foreign tourism.
• Services sector, including financial, social, transport, retail and government.

Agriculture
The KwaZulu-Natal government recently announced an agrarian reform plan which will see the province's emerging black farmers working closely with white farmers to use agriculture as a catalyst for economic development. Critically, agricultural production is important for food security because it is a source of income for the majority of the rural poor. Agriculture is a source of livelihood for an estimated 86 % of rural people and provides jobs for 1.3 billion smallholders and landless workers.

KwaZulu-Natal is South Africa's best watered province, has a larger area of high quality agricultural land than any other province, and is the national leader in several agricultural products. The Midlands area between Pietermaritzburg and the Drakensberg is the heart of this high quality agricultural area with a concentration of vegetable, dairy and stock-farms. The KwaZulu-Natal 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.

KwaZulu-Natal offers plenty of opportunities in a range of products including herbs and spices, medicinal plants, nuts, fruits and vegetables and aromatic plants for essential oil production. Enterprise iLembe, the economic development arm of the iLembe District Municipality, is working with the Stables Wine Estate, a wine farm located in the KwaZulu-Natal midlands, to promote the north coast area as a new wine farm destination. The development of a wine industry in KwaZulu-Natal offers substantial employment to the region, in both agriculture and tourism. The Stables Wine Estate will celebrate release of the first sparkling wine produced in the French tradition in 2010.

Manufacturing
After Gauteng Province, KwaZulu-Natal's diversified manufacturing sector is the second largest in the country. The manufacturing sector is geared for export, with nearly a third of South Africa's manufactured exports being produced here. According to the provincial government, manufacturing is the biggest contributor to the province's gross geographic product (GGP).

Serious, globally competitive manufacturers with original designs and great components are located in the region. The largest manufacturing industries are the automobile and component sector, pulp and paper products, chemicals and petrochemicals, and food and beverages.

More than 50 major automotive component suppliers including Toyota, MAN Truck and Bus SA, Volvo Trucks and Bell Equipment operate in KwaZulu-Natal, with 18 of them being secondary suppliers providing individual components or raw materials to the manufacturers of components or sub-assemblies for the motor assembly plants. The industry generates strong linkages with:

• Input industries such as aluminium, chemicals, electronics, leather & textiles, plastics, steel, machinery and equipment,
• Service industries such as engineering, logistics, tooling,
• Others such as financial, wholesale & retail, advertising.

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.

Manufacturing in the Richards bay region includes two world-class aluminium smelters, a leading phosphoric acid and granular fertilizer plant, and a major pulp and linerboard mill. The South African government is supporting a range of moves to stimulate investment in the Richards Bay Industrial Development Zone (RBIDZ).

The RBIDZ is a purpose-built and secure industrial estate on the north-eastern South African coast. The RBIDZ is specifically able to offer a customs controlled area that is conducive to export orientated industries inclusive of the following advantages:

• Non- applicability of VAT and duties
• Expedited customs procedures
• First World, cost effective secure operative environment
• Linkages to the deep water port of Richards Bay
• National incentives programme

Tourism
Our continued success in tourism depends entirely upon our reputation
Despite its distance from the affluent first world markets, South Africa ranks within the top 30 tourism destinations in the world. KwaZulu-Natal is now the market leader for domestic tourism in South Africa, as well as number two in terms of international tourism. The estimated total economic impact of tourism on the economy of KwaZulu-Natal was about R26-billion in 2008.

KwaZulu-Natal has great accommodation facilities, wonderful leisure and recreation opportunities, a rich history and diverse cultures. Many interesting sites have a colourful history of heroic people, struggles and wars represented in numerous battle sites. Zulu culture and history forms a key part of the province's heritage and the Zulu monarchy of KwaZulu-Natal is the only monarchy specifically provided for in South Africa's constitution. As such KwaZulu-Natal's history and culture has not been forgotten in the face of progress.

KwaZulu-Natal boasts two World Heritage Sites - the Isimangaliso Wetland Park and the Ukhahlamba Drakensberg Park. Superb beaches of world-class quality are to be found along virtually the entire coastline. Durban has been listed as one of the top ten family beach holiday cities in the world by travel publishers Lonely Planet. "Durban resembles a gigantic resort holiday paradise, raised for the sole purpose of entertaining families," the Lonely Planet publication says of the city in its section on South Africa. "Lined with safe beaches watched over by lifeguards, the Golden Mile is great for swimming, snorkelling and water sports."

The Durban International Convention Centre (ICC) remains the best conference centre in Africa and is considered to be amongst the top ten worldwide. Since its opening in August 1997 the ICC has contributed as much as R6-billion to the local economy. An ICC conference delegate survey done in October 2008 by Tourism KwaZulu-Natal, shows that on average delegates spend R6 400 per conference and that 47% of those polled said that they were "extremely likely" to return to the city on holiday within a five year period. The ICC's expansion into an entertainment arena that has been especially designed for concerts, sports such as wrestling, ice skating shows and exhibitions will bring new benefits. Plans are in place to establish a convention and events bureau to attract big conferences and events to the province. The World Health Tourism Congress will be held later in the year.

Positioned as a major domestic tourist destination, Ugu District Municipality on the south coast of KwaZulu-Natal is home to several championship golf courses, game reserves, crocodile farms and traditional cultural attractions. The Ugu Sports Complex, a new sports development initiated by the Ugu District Municipality is intended to become a catalyst for growth in the region. The development has been designed to appeal to the local community while at the same time providing world-class facilities.

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. Proposed projects include:
§ A marina development at the Tuzi Gazi waterfront. The development envisages restaurants, offices, residential and entertainment components.
§ Development nodes around Lake Mzingazi, which include a fully serviced golf course, residential estate, residential and light commercial zone, office park development and hotel.
§ A canal node development in Richards Bay which includes a tourist piazza with a cultural centre, tourist nodes with a lodge, conference facilities, wetland park and commercial node.
§ A passenger terminal has been planned for the Tuzi Gazi Waterfront providing comprehensive ranges of services to tourists. This will have a significant impact on the ability of the port to draw both large passenger liners and small craft.

As the tourism sector has tremendous potential for future growth, a number marketing initiatives are aimed at giving KwaZulu-Natal an opportunity to overtake the Western Cape as the leading destination for international tourists. These include:

• The packaging of mega beach resorts and sourcing of investors to support the global competitiveness study outcomes and to position KwaZulu-Natal as a beach destination, particularly for land locked countries.
• The development of niche tourism including: cruises, golf, health and hunting. Already in the pipeline are initiatives such as the Seatrade Africa Cruise Forum, scheduled to take place in 2011.

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. As is apparent in the table below 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. The community and social services sectors, some of which are provided by government and others initiated by communities and NGOs also fall within this category.

Of importance is that many of the service activities in our society straddle both the first and second economies. In addition, these have been the sectors in which significant job creation has taken place in recent years. The sector encompassing wholesale and retail trade, hotels and restaurants is an important source of employment with a large proportion of workers being women from the informal sector.

A number of sectors within the services sector have been targeted for investment including:

• Transport and logistics
• Multimedia (especially films)
• Call centres
• ICT

Although the size of the ICT sector remains well below that of Gauteng and the Western Cape, there is no doubt that KwaZulu-Natal has the third largest provincial concentration of ICT firms in the country. Durban is the SmartCity of Africa with a complete fibre-optic network that provides broadband access to vital services, businesses, schools, hospitals and tertiary institutions. Through eThekwini Metroconnect spare broadband capacity is sold on its extensive optic fibre network at reduced rates. Consequently businesses of all sizes in the eThekwini metropolitan area are reaping the benefits of faster, more reliable internet access. Foreign investors in the information technology sector are also encouraged in order to grow this sector. There are endless opportunities to invest in technologies, especially in the areas of sensors, smart cards and satellite technology.

KwaZulu-Natal has become a popular location for TV commercials and feature films for both local South African productions and overseas features. Over the past few years a number of feature films have been made either in part or in full in and around Durban including Mr Bones 2, Blood Diamond, Izulu Lami: My Secret Sky, Florida Road and For Better For Worse. The increasing interest shown by Bollywood producers and film companies in KwaZulu-Natal has seen Dhoom 2, Race and Prince filmed here. The filming of the new South African film, Spud: The Movie, commenced in early March 2010 at the prestigious Michaelhouse School in KwaZulu-Natal. This sector is set to grow and has the support of the government.

Investment
"No rules for success will work if you don't" (Mike Litman)
There are other opportunities for investment in KwaZulu-Natal in sectors such as construction, tourism, transport and logistics. Current investment projects round the province are plentiful as the following examples illustrate.

Fairmont Zimbali Hotel & Resort: IFA Hotels & Resorts, a leader in real estate development, is currently constructing the Fairmont Zimbali Hotel & Resort. The Fairmont Zimbali will feature an ultra-luxurious resort hotel, a championship Gary Player designed golf course with clubhouse and golf academy, full-service Willow Stream Spa, Signature Beachfront Villas, Golf Chalets, Apartments and Villas, as well as a Fairmont Heritage Place Private Residence Club. IFA Hotels & Resorts is the single largest investor in KwaZulu-Natal to date.

Fibertex South Africa: A recent investment of R175-million by the Industrial Development Corporation (IDC), the Danish Industrial Fund for Developing Countries, Fibertex, of Denmark, and Safyr has been made in a nonwoven needlepunch textile plant in Hammarsdale, KwaZulu-Natal. Turnover is expected to be R100-million at the outset and to grow to R150-million a year. Fibertex South Africa aims to export about 40% of its products to sub-Saharan Africa and the southern hemisphere.

Apollo Tyres SA has announced plans to invest R300-million in new equipment and technology for the company's Ladysmith manufacturing plants over the next three years. "This investment will make it possible for us to remain globally competitive and reduce production costs. The new investment will be 100 percent into our Ladysmith plant, but part of the machinery will be servicing both plants - in Ladysmith and Durban," said Luis Ceneviz, the chief executive officer. The new investment announcement follows upgrades to the Dunlop Durban and Ladysmith plants, totalling R250-million over the past few years. Together with the new investment, Apollo would pump more than R500-million into its South African operations in seven years.

Jozini Tiger Lodge: The four-star Jozini Tiger Lodge, in Pongola, officially opened in March 2010. Signature Life Hotels in partnership with the National Empowerment Fund, developed this property at the Jozini Dam, hoping to stimulate the economy and support the region, which is recognised as one of the poorest areas in northern KwaZulu-Natal. At the opening ceremony, His Majesty, King Goodwill Zwelithini said: "I declare Jozini Tiger Lodge officially open and am proud to be here seeing what a true partnership between the government and private sector can do to create for the people of Jozini." MEC Ina Cronje said: "Tonight's occasion will certainly take the Umkhanyakude district forward on its path of socio-economic development." She further commented, "This is an underdeveloped tourism region with so much to offer and it is commendable that 80 % of the staff have been taken and trained from the area to work in the hotel."

Tusk Umfolozi Casino: The new-look design and upgrade of facilities include the construction of a Peermont Metcourt Hotel, with 44 suites, a state of the art conference centre and a multi-purpose entertainment and events arena. The estimated cost is R110-million.

Durban Point Waterfront: In excess of R1.8-billion has already been spent on development at the Durban Point Waterfront, with the final investment figure estimated in the region of R6-billion. Phase One is in various stages of completion, planning and construction. The four-star Docklands Hotel valued at R110-million has 81 rooms, a restaurant and four conference rooms seating a total of 400 people. The R60-million Anchorage Hotel, which is part of the Life Hotels brand, has 63 rooms, a restaurant and a conference room which seats 400 people. It is set to open in the latter part of 2010. In the planning phase are a 44 000sqm entertainment and lifestyle shopping centre.

The Five Ways Mall in Empangeni's Central Park complex is to be opened in August 2010. The new shopping centre will offer a range of stores including a SuperSpar and Tops as well as a pharmacy, optometrist, travel agency, fast food outlets, hairdresser, sports bar and ATM lobby. Spokesperson, Harry Giannacopoulos, said: "Empangeni has obviously grown and we feel that the town is ready for another shopping centre of this size. We believe the development is exciting for the town and so far everything is going according to plan."

Empowering Business Success
Growing economic opportunities in KwaZulu-Natal is inherent in the provincial government's aim to promote employment and reduce the poverty barriers faced by many people. Through the concept of broad based black economic empowerment (BBBEE), efforts have been made to reduce the gap between the highly advanced and sustainable first economy and the risky second economy, in which many of the poor communities are locked. BBBEE aims to promote entrepreneurship in black communities and to give black businesses access to business opportunities in the mainstream economy.

Acknowledgement of the necessity for BBBEE is essential along the entire supply chain. This includes changing the idea of BBBEE compliance as an unwanted requirement into the understanding that it's an opportunity for marketing and growth.

In tandem with BBBEE, small, medium and micro enterprises (SMMEs) have come to play an increasingly important role in South Africa's economic development. The provincial government regards 'small businesses' as 'big business' because of the positive impact on our economy as key providers of job opportunities. Support is been given to small-scale enterprises by developing and empowering these businesses to become sustainable contributors of reliable, cost-effective products and/or services.

The development of the co-operatives programme is also part of the Provincial Industrial Development Strategy to grow the economy. Sectors with potential for small business enterprises include: manufacturing, services, housing, construction, tourism, telecommunication, agribusiness, and information technology.

Get Going
Motivational speaker Mike Litman stated, "The biggest secret of success in life is: You don't have to get it right; you just have to get it going. Perfectionism can kill success. We never get going because we are always waiting to get everything just right. Instead, let's get going." This equally applies to all who venture into KwaZulu-Natal to do business, no matter the scale. Get going - the opportunities are boundless.


Grant Adlam
grant@topbusiness.co.za
www.topbusiness.co.za