Unlocking KZN’s economic potential

THAMI MAGUBANE, KHETHUKUTHULA XULU and SIBUSISO MBOTO

THE KwaZulu-Natal provincial government and the KZN Growth Coalition are steadfast in their belief that the province’s economy, which was battered by the Covid-19 pandemic, the July unrest and this year’s floods, can be revived.

In her update on her first 100 days in office this week, Premier Nomusa Dube- Ncube said the government was focused on business retention and expansion strategies.

“We will ensure we create an environment conducive for investment and the government’s role is to ensure that local businesses benefit first.”

She said there had been significant progress in economic recovery, pointing to the reopening of the Toyota plant in Prospecton, which was ravaged by the floods in April, the R7.7 billion upgrade and expansion project at Sappi Saiccor Mill and the R750 million investment by the Metair Group’s Hesto Harnesses, which manufactures wiring harnesses for the automotive industry.

“We also launched the Oceans uMhlanga mixed development project in uMhlanga. The development boasts the Radisson Blu Hotel, a world-class shopping mall and luxury apartments.

“Oceans uMhlanga broader investment of R4.2bn has transformed the upmarket area of uMhlanga.”

She said there were several other projects in the pipeline which had the potential to create thousands of jobs.

Siboniso Duma, KZN MEC for Economic Development, Tourism and Environmental Affairs, said there were set to be significant infrastructure projects in the next few years.

These projects are aimed at creating the space for black entrepreneurs to grow their businesses and thrive.

“These projects will create employment opportunities, for instance in the Msinga area there is a school that will be constructed valued at R200m,” he said.

He said billion-rand projects were already under way in the province, including the upgrading of key routes to accommodate

the increasing volumes of traffic. “Sanral (SA National Roads Agency) will invest R3bn to expand Spaghetti Junction,” he said. He spoke of other challenges undermining the province’s economy, one of them being the poor rail infrastructure.

“Richards Bay is the busiest port in the country and Durban has the biggest port. We have many trucks on the road, which have a damaging effect on our road infrastructure. The lifespan of our roads should be around 10 years, but because of the trucks, it is down to three or four years,” he said.

The real solution would be for Transnet to fix its rail infrastructure for both goods transport and commuter traffic, he said.

Duma said the economic development department was engaging with the KZN Growth Coalition to help identify black entrepreneurs who are looking for equity stakes and would be providing between R20m and R110m for this endeavour.

Moses Tembe, KwaZulu-Natal Growth Coalition co-chairperson, said the province could revive its economy provided there was a sense of commitment from all social partners on what needs to be done.

According to Tembe, there are a number of industries that KZN needs to continue tapping into, including:

• manufacturing and storage

• transport and logistics

“The ocean’s economy is our obvious selling point because it provides opportunities for trade, commerce as well as tourism,” said the businessman. For this to happen though, Tembe stressed, some fundamentals need to be addressed.

He said the efficiency of the Port of Durban needs attending to, pointing out how such a move could unlock economic activity.

While Durban is the main attraction to tourists, especially from overseas, the rest of the province still has a lot to offer. This, Tembe said, meant ensuring efficient infrastructure and an undisturbed supply of water and electricity.

He said safety was a key priority for attracting new investments. “No one would want to put their money where there is no stability,” Tembe said.

“KwaZulu-Natal is a rough diamond that needs polishing for everyone to appreciate its beauty, and all of us need to make an effort towards this.

“It can be done because all the tools are there,” Tembe said.

THE Durban beachfront promenade. The KwaZulu-Natal provincial government says it is confident that the province’s economy can be revived. | LEON LESTRADE African News Agency (ANA).

INVESTMENT PROJECTS IN THE PIPELINE

Sino Africa Gas

This entails manufacturing of food-grade carbon dioxide for the beverages sector. The R56m project will be in Newcastle at the Karbochem chemical complex and is expected to contribute a potential of 50 jobs.

CMT Global

A textile and apparel manufacturing facility at Ezakheni, valued at R390m, creating 1 650 jobs. The company is the largest vertically integrated textile manufacturing plant.

Estcourt Intermodal Terminal

A logistics park and an intermodal terminal at the old Masonite/ Evowood site in Estcourt. It is recognised as one of the official Transnet back-of-port facilities across the country and is valued at R1.2bn with a potential of 1 000 jobs to be created.

Zululami Coastal Residential Estate

The residential estate development by the Rowles Property Group in Ballito. The first phase of the project is worth R390m, creating 400 jobs.

Duzi Forestry – Plywood

Duzi Forest Engineers is the plywood- and veneer-manufacturing company. This project is valued at R104m and is in Ngome, AbaQulusi Local Municipality.

Watercrest Medical Centre of Excellence

A medical centre which will be comprised of 407 beds servicing acute, sub-acute, day care and psychiatric wards to be located in Hillcrest. This is a R1.5bn investment with an estimated 1 000 jobs.