Investments in South Africa
Kwazulu-Natal is an important hub of industrial development in sub-Saharan Africa, thanks to its rich natural resources and well-developed infrastructure.
Economic activities in the province are mainly concentrated on the port of Durban and the capital, Pietermaritzburg, with significant contributions in the Richards Bay- Empangeni area, the Ladysmith-Ezakheni area, the Newcastle-Madadeni regions as well as on the south coast.
KwaZulu-Natal is a competitive region for foreign investment, particularly for re- export opportunities through the port of Durban.
The province has identified nine prime targets for inward investment: textiles, clothing, plastic products, chemicals, fabricated metal products, automotive components, wood and wood products, footwear, machinery and appliances. Of these, primary and processed aluminium at world competitive prices from local suppliers, provides a real opportunity for investors in the sector.
- Pre- and post-establishment support, such as feasibility studies, liaison with government departments, marketing, technical and financial analyses, and assistance with legal formalities and regional regulations.
- Provision of infrastructure and utilities.
- Lease or sale of land and property.
- Loans for acquisition of plant and equipment.
- Working capital loans.
- Introductions to key contacts, such as auditing companies, legal practitioners, material suppliers and shipping groups.
Richards Bay is the centre of operations for South Africa’s aluminium industry. The Richards Bay Coal Terminal is instrumental in securing the country’s position as the second-largest exporter of steam coal in the world. Richards Bay Minerals is the largest sand-mining and mineral-processing operation in the world.
The vehicle-manufacturing industry has created a considerable multiplier effect in component and service providers. The automotive leather industry has grown rapidly, with exports significantly increasing foreign exchange earnings. KwaZulu-Natal has also recently undergone rapid industrialisation, thanks to its abundant water supply and labour resources. Industries are found at Newcastle, Ladysmith, Dundee, Richards Bay, Durban, Hammarsdale, Richmond, Pietermaritzburg and Mandeni.
Substantial progress has been made to the Dube Trade Port and King Shaka International Airport project at La Mercy. It is estimated that redevelopment of the current airport site will create 269 200 jobs over a 25-year period. The airport is expected to be operational by 2010, in time for the Fifa Football World Cup.