Chemicals company heads to Harrismith for logistics and costs

The sleepy little N3 fuel stop of Harrismith is reinventing itself as an attractive option for investors keen to leverage off affordable industrial realty nicely placed halfway between Africa’s busiest port and South Africa’s engine room in Gauteng. One of the latest Johannesburg companies to move part of its enterprise to the Maluti A-Phofung special economic zone (SEZ) in the Free State border town is Kevali Chemicals. The wholly blackowned outfit, which ships purification products intended for water treatment, hygiene and sanitation to countries across the Southern African Development Community, including Kenya, Uganda, Rwanda, Ethiopia and several Indian Ocean islands, will keep its head office in Sandton but is upbeat about its new prospects. CEO Bongumusa Kunene

is non-commital about why they decided to take the leap south down the N3, but agreed that there was a definite logistical advantage to the new strategic location for its factory. “We have a significant number of projects in the pipeline and were looking for a competitive edge.” Although Kevali’s order book covers at least 10 countries, Kunene said its “export component is pretty low but we’re looking at growing it”. All the more reason for the company to minimise transport costs by positioning itself closer to the Port of Durban whilst simultaneously paying less for factory space. Kevali was launched in 2014 after it split from Improchem and substantially benefited from the Department of Trade and Industry's (dti) Black Industrialists Incentive (BIS). “The programme, launched in 2016, is one of the first approved black

industrialists projects launched, operating in the chemicals, pharmaceutical and plastics sector,” a dti statement said after Kevali opened its Harrismith factory earlier this month. With 57 full-time employees and 12 flexi staff, Kevali is the only company of its kind currently operating in the Free State.

More importantly, said the dti, “its investment is beneficial to the surrounding communities of Harrismith as the employment rate in the surrounding areas is approximately 41.8%”. Talking about the regular trips down south and back, Kunene said it was worth it. “Maluti A-Phofung has proven itself in terms of

provincial competency and Harrismith holds several unique selling points for us. Logistically speaking, it’s  not the only reason we have moved our factory there. Although there’s value to be had in its strategic location from a transport point of view, we’re also looking at additional benefits but we don’t want to reveal too much at this stage.” Maluti A-Phofung has proven itself in terms of provincial competency. – Bongumusa Kunene