The KwaZulu-Natal public and private sectors have no control over turbulence in international markets, currency depreciation and difficult trading conditions but will focus on what is within their reach – the delivery of key projects and developments that will boost economic growth and create jobs.

KwaZulu-Natal MEC for Economic Development and Tourism Michael Mabuyakulu told the KZN Growth Coalition Top Executive Business Summit, in Durban, this week, that government intended to facilitate development and intervene where necessary to facilitate investment.

This yearly event is the biggest gathering of business and government leaders in the province.

Mabuyakulu noted that projects worth an estimated R500-billion were expected to be developed in Durban over the next three to five years, in addition to developments worth more than R120-billion in Richards Bay, R70-billion in the Ilembe district and R55-billion in the uTugela district.

Businessperson Moses Tembe, who cochairs the KZN Growth Coalition alongside KwaZulu-Natal Premier Senzo Mchunu, said it was possible to increase the province’s current gross domestic product from around 3% to between 5% and 6% within the next three to five years.

He pointed out that, in recent years, the cooperation between the KwaZulu-Natal provincial government, local governments and the business community had developed into an honest, structured and close partnership, not just at policy level, but also through eight-a-side forums that had been established in Durban, Richards Bay, Pietermaritzburg, Newcastle, Port Shepstone, Ladysmith and Dundee.

Similar forums would be established in Greytown, Kokstad and Ulundi.

Tembe noted that the forums allowed business direct access to provincial and local leaders to facilitate interventions. This had already unlocked key projects that would otherwise have been delayed by inertia, bureaucracy, corruption among officials and a lack of willingness to persist.

In addition to the eight-a-side forums, he said flagship project-specific meetings attended by senior government and business representatives had opened the way for developments such as the Keystone logistics park, in Hammarsdale, which was under construction. The park would house the new Mr Price distribution hub – the biggest facility of its kind under one roof in South Africa.

He valued planned projects in the eThekwini region alone at more than R480-billion over the next five years.

These include the Blythedale coastal development, which had been “unblocked”; the two industrial development zones in Richards Bay and the Dube Trade Port, which were now officially registered; the remaining sites in the Umhlanga Ridge precinct; and the recently launched Sibaya precinct.

Tembe further pointed out that work on the Clairwood logistics park, on the old Clairwood race course, which was the last remaining flat land available for development to the south of Durban, was progressing well, while both local and provincial governments were looking into the challenges preventing the release of centrally located land at Westwood for development.

“New Malaysian developers have launched a redesigned Durban Point development, which is further complemented by the extension of the Tsogo Sun Suncoast precinct and the Film City development on the site of the old Natal Command. These three projects alone will redefine the impact of Durban’s Golden Mile on the marketability of the central business district (CBD) and the province,” he said.

Tembe added that the acquisition and redevelopment of old neglected buildings in the central and southern parts of the CBD had also increased in recent months.

Meanwhile, he said there were still challenges that had to be addressed by the KZN Growth Coalition. One was the substantial cost of doing business in Durban.

“Unfortunately, Durban remains very expensive as an investment destination, not only when it comes to paying rates, but also the hidden costs that are forced onto developers.” 

He urged all parties to “go back to basics” and said the KZN Growth Coalition would be engaging the province’s mayors to start developing future budgets and strategies for sourcing new funding to support envisaged growth.

Tembe stressed the importance of buying locally manufactured goods to retain and expand existing businesses and preserve jobs, as well as to focus on agricultural and rural development and opportunities in renewable energy.

“We need to optimise export incentives available from provincial and national government, focus on the implementation of economic zones throughout the province, drive the rehabilitation of the CBDs of KwaZulu-Natal cities and towns and identify new financial resources to fund some of the upgrades.

“Finally, we need to increase our efforts to seek mechanisms to control and stop the inflated cost of contracts issued by all levels of government, vis-à-vis the optimal cost that should apply,” he said.Provincial govt commits to driving KZN economic growth, investment.