Durban in Context | Durban Chamber of Commerce and Industry

Durban in Context

An Economic Hub

Durban, established in 1835 is located on the east coast of South Africa in the Province of KwaZulu-Natal. The Province is one of the nine province of South Africa.

Cosmopolitan Durban’s harbour is central to the city being described as the economic hub of KwaZulu-Natal. The city is not only an international logistics management centre, but an investment capital, a tourism and leisure centre, a retail node, and also a cultural and entertainment hub.

eThekwini Municipality

The name Durban, which strictly speaking relates to the City of Durban, has come to be associated more broadly with the local government area officially known as the eThekwini Municipality. The eThekwini Metropolitan is one of the country’s six new metropolitan super municipalities, which was created in 2000 after the conclusion of the municipal demarcation process. The newly demarcated boundary increased the Durban Metropolitan area by 68%, although increasing the population by only 9%. eThekwini Municipality is a substantial administrative centre, providing key public services within the Metropolitan area as well as to the wider region.

eThekwini Municipality has an area of 2297 square kilometres, of which 36% is rural and a further 29% is peri-urban. The municipal area stretches from Umkomas in the south, including some tribal area in Umbumbulu, to Tongaat in the north, moving inland to Ndwedwe, and ends at Cato Ridge in the west.

Topography

The municipal area is characterised by diverse topography from steep escarpments in the west to a relatively flat coastal plain in the east.

Population

The estimated population of Durban is currently 3,346,799 (2004).

Durban consists of diverse ethnic groups: The Zulu nation is the prominent African tribe, the White population includes majority of people of English descent and a substantial number of frikaans-speaking people. Durban has the biggest concentration of Indian people outside of India. Whites currently constitute 8.98%, Asian 19,9%, Blacks 68,3% and Coloureds 2,82%.

Languages

There are 11 official languages throughout the country. In Durban, the main language is Zulu (isiZulu) spoken followed by English, Xhosa (isiXhosa) and Afrikaans.

Climate

The warm Mozambique current brings a subtropical climate to Durban and its surrounds, which prevails for most of the ear. The summers are hot and humid with temperatures sometimes reaching 32 and 35 degrees but averaging 28 degrees. The majority of the annual rainfall falls within the summer months. Winters, with average temperatures of 23 degrees are warm, dry and clear.

Daylight

Sunshine is plentiful, varying from 7.5 to 9.5 hours daily. Winter sunshine averages almost seven hours a day.

Time Difference

Throughout the year, Standard Time in South Africa is two hours ahead of Greenwich Mean Time, one hour ahead of Central European Time and seven hours in advance of Eastern Standard Time.

Infrastructure and Services

The city has established and maintains, world-class infrastructure to support growth, Industrial developments and modernisation have resulted in much development in logistics including the:

Modern freeway system with fast access to inland regions,
Large rail network for cargo and passengers,
International airport with air-cargo facilities,
Modern IT and telecommunication networks,
Electricity from the national grid (Eskom)
Ample water supply via major reservoir network,
Established municipal sewerage and waste management systems,
Modern Postal service.

Durban Port

The port of Durban plays a key role in the city’s economy as well as that of South Africa and has established itself as the main coastal gateway into and out of Southern Africa. Durban port is the largest in Africa in terms of value of cargo throughput and is South Africa’s premier general cargo and container port. It is ideally located to access the international shipping routes between East and West, with excellent shipping linkages to the Americas, Europe, the Persian Gulf, South East Asia, the Pacific Rim and Australia/ New Zealand. In addition, it is the most sensible location for transhipment of cargoes between Eastern, Middle Eastern and Western economies.

The port is modern and well equipped, offering a wide range of goods and passenger handling facilities. These are backed up by a versatile grouping of speciaised and general warehouse and materials handling organisations and road, rail, air and pipeline transport systems. Durban Port offers the following facilities:

Port Operation Facilities, Container terminal, Break-bulk cargo facilities, Bulk handling facilities, Bulk liquid storage, Dedicated refined-sugar terminal, motor vehicle terminal, Dry-dock and ship repair facilities, Vessel re-victualling, Passenger vessel terminal, and Yacht basin.

However, the port’s success causes serious congestion, which occurs on both the water and land sides of the overall port operation. The Port is currently undergoing a R1.34 billion investment programme aimed at upgrading existing facilities, increasing capacity and accommodating the latest mego-container vessels. Plans are in place to address the waterside constraints with an ambitious project to double the width of the harbour entrance to permit simultaneous entry and exit of shipping. Construction work on this project is already underway.

The Dube Tradeport

A flagship growth project is the Dube Tradeport , which is to be situated about 30 km north of Durban’s city centre. The Dube Tradeport will incorporate an international Airport, an industrial development zone, perishables facility, intermodal freight transfer facility and other commercial and retail opportunities as well as a cyber zone. The platform will be linked with the seaports of Durban and Richards Bay. 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.

It is anticipated that the R2,4 billion King Shaka International Airport (KSIA) will be operational by December 2009 and that the existing Durban International Airport in the southern industrial basin will be decommissioned in the first quarter of 2010.

Electricity

The city of Durban receives its electricity supply via the national supply grid from Eskom.

Installation

Electrical cabling units, switches and transformers must comply with South African standards. The capacity, availability, and cost at each site option should be clarified with the premises owner or relevant reticulating authority.

Waste Disposal

The municipality has properly organised waste removal and disposal systems in operation. Waste recycling is being encouraged and community and business support for recycling is increasing steadily. the private sector is also involved in waste removal management, and in many cases acts as contractors to local authorities.

Water

Durban is well serviced with high quality water. South Africa is one of the few countries in the world were the Municipal tap water is perfectly sage to drink. portable water is not recycled, although supply of recycled water can be negotiated for specific industrial application in the Durban area. Water supply for urban use is sourced from a network of storage dams strategically located around the Province. The provincial water utility is Umgeni Water. South Africa subscribes to world-class environmental management protocols and local authorities enforce these.

Pollution

Pollution controls are of a first world standard in South African and are normally enforced by the local authority.

Telecommunications

The national government organisation, Telkom, is the supplier of all landline telephone nd facsimile services. Standards are world class and new business or domestic telephones can be promptly installed. Telkom offers a range of services and products. Telecommunication equipment is available both from Telkom and private sector suppliers. The telecommunications system is almost fully automatic - one can dial direct to most centres in South Africa except for the more remote districts and to most parts of the world. Facsimile transmission(fax) facilities are widely available.

Enquiries: Telephone directories list the dialling codes and numbers. Should you find that a number you need is not listed in the telephone directory, or the number has changed, dial 1023.

Phonecards to the value of R10, R20, R50, and R200, can be purchased a airports, some shops and at post offices. International dialling and national area codes can be found n all local telephone directories. Card-and-coin-operated public telephones are readily accessible throughout the country.

Internet and E-mail service providers are generally good. Technology advancement is an integral part of communications, with the result that new services and products are continually on offer. Cyber Cafes offer Internet facilities, faxing and printing services in most larger centres. Most hotels and businesses offer fax services and/or e-mail facilities.

A system for cellular mobile phones operates in South Africa, thus enabling foreign visitors to use their cell phones. Cell phones can be rented through various outlets and at international airports. Cell phone networks and satellite communications are offered by private sector organisations and each has an extensive range of services available.

Durban Information Technology

Based in Durban South Africa, SmartXchange, an information Communication Technology (ICT) incubator has been set up in Durban as part of the city’s attempt to build a globally competitive ICT industry. Durban has good IT infrastructure, including modern telecommunications and a subsea cable connectivity to the Internet. The Province is also boosted by a strong commitment from local government to build a competitive ICT industry. SmartXchange is an example of a successful public private partnership initiative within the Information and Communications Technology industry. Its initial focus has been in Durban and the surrounding KwaZulu-Natal province, however, it is anticipated that the model will be replicable to any other part of the country.

Postal Services

The government organisation, South African Post Office, is the main postal authority. There are a number of smaller parallel private sector organisations that offer bot postal and courier services in the domestic and international markets. Post box addresses are available from local post offices. Mail services are reliable and operate on a hub and spoke distribution system. Money and cheque transfers should be made electronically via the commercial banks, unless payment is to the post office, which is well set up to receive payments for its own services. It also acts as a third party gent for payment of other services such as Tv licences, car licences and municipal bills.

Currency

South Africa’s currency unit is the rand R1 = 1-- cents. Banknotes are issued in denominations of R200, R100, R50, R20 and R10. Coins are minted in denominations of R5, R2, R1, 20c, 10c and 5c. The international symbol for the currency is ZAR. New coins have recently been introduced but the old ones are still in circulation. The common monetary area using the land includes Lesotho, Namibia and Swaziland.

Banking Hours

Banks are generally open on weekdays from 09:00 - 15:30 and on Saturdays 08:00 - 11:00 but variations do exist. Other than, for effective, automated teller machine networks, banking after hours or on Sundays is not usually available.

Measurement

Metric System.

Voltage

The standard electricity supply in South Africa is 220/230 volts 230/400 volts AC three phase ac Hz. Appliances compatible with all international plugs are obtainable locally. Most rated hotels will have such adapters available.

Value Added Tax (VAT)

Vat at 14% is charged on most purchased goods and services. Foreign tourists may claim refunds of VAT paid for goods (not services), provided the total claim (i.e money spent, not Vat) exceeds R250 nd the goods are being taken with them out of South Africa. Claims can be made at departure airports, harbours and customs offices by presenting tax invoices and actual goods as proof. Further details or procedure leaflets are obtainable at all international airports an at the SA Tourism Board offices, or telephone +27 (0)11 394 117.

Tipping

As restaurants do not usually include the tip in the bill, a gratuity of 10%-15% of the bill generally applies, depending on the standard of the service. Luggage porters are, as a rule, given R5.00 per item of luggage, while taxi-drivers expect 10% of the fare. Car Guards are a common feature of South African society and are generally given between R2 - R10 depending on the length of time that the car was parked.

Driving

Public roads in South Africa are well developed and well sign-posted with driving done on the left hand side of the road. Speed limits are strictly enforced and drunken driving is treated as a serious offence with spot checks made on major routes. Drivers must have an international driver’s license which must be carried and a minimum of 5 years experience.

Economy

eThekwini Municipality is the main economic driver in KwaZulu-Natal, contributing over half of the Province’s output, employment and income. In national terms, eThekwini is the second most important economic complex after Gauteng, accounting for 15% of national output, 14% of household income and 11% of national employment. Estimates are that 7% of the 30 million working age adults in the country and 6% of South Africa’s strictly defined labour forces of 16 million participants live in the eThekwini Municipality.

Durban is a thriving industrial centre, which include shipbuilding and ship repairing, sugar refining, petroleum refining, fishing, automobile assembly, and the manufacture of food products, paint, chemicals, fertilizers, soap, footwear, and textiles. While manufacturing remains a large contributor, the relative importance of the sector in the metropolitan area has declined over the past decade. By contrast the services sectors, more specifically finance, business and real estate; wholesale and retail trade and transport and communication have grown in relative importance.

The largest manufacturing sub-sectors in terms of net output re food, beverages, textiles, clothing, paper, printing, chemicals, fabricated metals and motor vehicles and components. Together, chemicals and industrial chemicals comprise the largest portion of manufacturing output. These sub-sectors have seen significant growth and foreign investment. Food and beverages together comprise 17% of manufacturing output and have also shown significant growth.

The Durban Automotive Cluster (DAC) was established to support the automative manufacturing industry in Durban and in the Province of KwaZulu-Natal. The cluster is supported by 35 automotive firms; which represent more than 80% of the regional industry,;the Department of Trade and Industry, the provincial government and Durban local government. It has a simple mandate to enhance the competitiveness of the regional automotive manufacturing industry through the co-ordination and facilitation of of information sharing and joint activities. A key automotive player, Toyota South Africa, which has been a market leader for the past 27 years, is situated in Durban. Toyota SA has entered into a public private partnership with the KwaZulu-Natal provincial government and eThekwini Municipality to establish an automotive supplier park in Durban.

Tourism

Durban’s natural advantages of climate, scenery, history, culture and built infrastructure of hotels, beaches and sports facilities attract many tourists. In addition, Durban’s multi-million International Convention Centre and adjoining luxury Hilton Hotel complex is the focal point of a growing conference and business tourism industry. In order to continue to attract both local and foreign tourists, a variety of projects both public and private have been proposed, which include a R2 billion upgrade to the city’s transport system, the R1,6 billion stadium, and another R3 billion in new hotels. These include:
Various international rugby events
FIFA Beach Soccer World Cup - 2009
Confederations Cup Soccer - 2009
FINA World Swimming Championships - 2011

In addition to these projects, possible bids for the Commonwealth Games in 2014 and the Olympic Games in 2020 are being contemplated.

The Municipality is also currently preparing for the Soccer World Cup 2010. The new Moses Mabhida Stadium is designed as a first-class multi-purpose sporting facility. The stadium is part of the infrastructure being developed around the Municipality in preparation to host the soccer world cup.

Location of Business Activity

Geographically, economic activity is mainly located in the South Central and North Central Local Council areas, centred primarily around Durban’s CBD, the port and the Southern Industrial Basin as well as along the North Coast Road and South Coast Road corridors.

Businesses in the eThekwini region are able to choose from a variety of locations for their operations, ranging from the thriving areas of Durban to the decentralised areas of La Lucia Ridge, Mount Edgecombe, Kloof and Pinetown. Industrial areas such as Southgate, Mahogany Ridge, Umgeni Business Park, with sites catering for a wide range of industries, are available for occupation. The private-sector driven development in Umhlanga and Sibaya, as well as new developments in Westville and other decentralised zones are gaining momentum. New sites are also being planned in the Cato Manor and Cato Ridge. Development has occurred around Pinetown’s CBD and the industrial estates of Westmead, New Germany and Southmead, to lesser degree.