Programme Director, Mr. Sean Mckenna;

Hon. Ravi Pillay, the MEC for Economic Development, Tourism, and Environmental Affairs;

Ms Elif Ülgen, Ambassador of Turkey;

Cllr M.V Madlala, the Executive Mayor of Alfred Duma Municipality;

Mr Andrzej Kiepiela, the Coordinator KZN Growth Coalition;

Ms Sizakele Mzimela, Chief Executive of Transnet Freight Rail;

Mr. Evren Albas, Defy Chief Executive Officer;

Mr Neville Matjie, Chief Executive Officer of Trade & Investment KZN;

Ms. Dudu Mazibuko, Chief Executive Officer of Uthukela District Economic Development Agency;

Social Partners;

Members of the Media;

Distinguished Guests;

Ladies and Gentlemen;

We are pleased as the Provincial Government of KwaZulu-Natal to join the team at Defy Appliances in officially launching the company’s new Danskraal warehouse and national distribution centre.

This commendable initiative represents a commitment to investment in the local economy of Ladysmith and South Africa as a whole. We view this much needed investment as another concerted effort to making a meaningful impact to the lives of its employees, business partners, consumers and the communities.

We understand that Defy Appliances is Southern Africa’s largest manufacturer and distributor of leading domestic appliances. We are truly proud that Defy has its deep roots in KwaZulu-Natal. The products which are known in the market under the Defy brand range from a full range of kitchen, laundry to small domestic appliances.

In its over 100 years operating in South Africa, we have associated Defy with manufacturing durable goods such as gas ovens, washing machines, dryers and ovens that cemented the company as one of the largest white goods manufacturer in KwaZulu-Natal and South Africa.

In the highly competitive manufacturing sector, logistics, warehousing, and distribution are areas that give companies like Defy an edge. We applaud the company’s admirable managment of supply chain and its continous efforts in strengthening the customer-focused delivery.

Ladies and Gentlemen, the historic Alfred Duma Local Municipality is the economic hub of uThukela District Municipality and therefore dominates the spatial economy of the district.

The manufacturing’s real gross value added expanded with robust growth of 209.7% in the third quarter of 2020 after it had dropped sharply by 74.9% in the preceding quarter.

The Coronavirus national lockdown impacted the manufacturing sector and other associated sectors such as iron and steel, non-ferrous metal products, metal products and machinery, petroleum, chemical products, rubber and plastic products, among others. The manufacturing sector is estimated to have contracted by 9.9% in 2020, however, projected to show a modest expansion of 3.9% in 2021.

There can be no doubt that KwaZulu-Natal is reliant on the manufacturing sector for its strong recovery following the devastation by the Coronavirus and the recession that constrained the provincial economy in 2019 and 2020. The value-addition in manufacturing sector is welcomed to create sustainable growth of the economy and create long-term jobs.

Collaboration between private sector and public sector will surely drive and position KwaZulu-Natal as a prefered destination for manufacturing and logistics or distribution investment.

Programme Director, our government is encouraged to note that Defy has established ways to further improve distribution efficiencies and investing in local communities at the same time. In this regard, Ladysmith is a prime location for the company’s Ezakheni manufacturing facility. The region is benefiting economically and the employment opportunities can be realised.

We applaud Defy for having invested about R642 million in the Ladysmith Ezakheni manufacturing facility. This fits perfectly in designating the area as a logistics development zone. The new Danskraal warehouse has brought an additional R170 million investment to the Ladysmith area, with over 130 new jobs. The warehouse will strategically serve as a dry dock for products required to go north. 60% of market volume is north of Durban.

In total Defy has progressively invested over R812 million in the region. This is very significant in regards to local economic development and manufacturing growth for Ladysmith.

The key imperative in the commissioning of the facility is human resource development in broader economic development for the area. Skills development will go far in providing a lift of differentiation in global trade. The KwaZulu-Natal economy has been growing in skills-intensive sectors and this development trend has compelled us to relook how best to implement rapid increase in skilled labour, driven by a pro-active human resource development strategy.

We would like to work closer with Defy to ensure that KZN is a province that aligns its economic development strategies with its human resource development strategies. We look to this company, for instance, to help input on the curricular at our TVET colleges as well as our universities. We hope that apart from in service training that Defy offers, that it can also consider getting involved in adopting a TVET college to enhance skills development and to ensure that we produce relevant skills needed by our provincial economy and by the 4th Industrial Revolution.

The challenges posed by high and growing levels of unemployment, two priorities are obvious:

1. to upgrade the skills base of KZN’s labour force in the long-term and

2. create employment for semi-skilled and unskilled workers, who constitute the vast majority of the unemployed – in the short- to medium-term.

The investment by Defy will surely elevate the upskilling of the workforce in the manufacturing sector.

The greatest investment will be growing people as well. Working together, we can create an inclusive future that does not leave anyone behind.

It is our ferverent hope that we wish to see the distribution centre creating the move of product by rail from the Ezakheni manufacturing facility to the Durban port 250 kilometres away with the net positive impact being to advance the export supply of Defy, and sister brand Beko appliances into rest of Africa.

As the provincial government, we firmly believe in the private sector companies from KwaZulu-Natal taking advantage of the African Continental Free Trade Area (AfCFTA), which opens the market to more than a billion people on the continent accessing new markets and achieving sustainable growth for businesses such as Defy.

We are grateful that Defy has remained invested and operate in KwaZulu-Natal and noticeably being a market leader in the South African market, the position which should be entrenched by the more than 100 000 m² of warehouses nationally.

As I conclude, please allow me to urge that through this warehouse and distribution facility that a portion of freight move away from road to rail, where feasible, to fully leverage the capacity of the Danskraal.

Once again, thanks to Defy for your bold vote of confidence in the KwaZulu-Natal economy and the people of Ladysmith.

Indeed, our warm, hospitable, and beautiful is open for business.

Together Growing KwaZulu-Natal!

I thank you!