Durban - EThekwini Municipality plans to attract R200 billion in investment and create 200 000 jobs over the next five years.
Speaking at an event to celebrate the 170th birthday of The Mercury and the relaunch of its business supplement, KZN Network on Friday, Mayor Mxolisi Kaunda detailed projects that could give the city a much needed economic boost in light of the difficult economic conditions.
He said that initial forecasts by economic advisory services IHS Markit have placed Durban’s GDP growth rate at 1.1% in 2023, slowing down from 1.6% in 2022.
Kaunda said: “However, the City expects this forecast to be revised even further down due to continued load shedding, consumer pressure from increased inflation and interest rate hikes, and the impact of infrastructure challenges.
“Nonetheless, over 80% of what remains of positive growth is expected to come from the manufacturing, trade and finance sectors.
“The finance sector has accounted for most investments into the city in recent months, with business services accounting for R685 million of the R1.9bn attracted into the city in 2022.”
Kaunda said the trade sector was expected to benefit from the recently launched Oceans Umhlanga Mall, in which space is reserved for luxury retailers to open over the next few months.
“This will further solidify Umhlanga as a high-end trade node, and contribute to an increase in jobs in the region and city.”
Kaunda further said: “For the entire municipality, we have planned to attract more than R200bn in investment in the next five years that is likely to yield close to 200 000 jobs.”
Regarding new investments,
Kaunda added that the City was pleased that the construction of a R30bn mixed use development in Ntshongweni had commenced.
“In August this year, we launched phase one of the development which is estimated to create 10 000 jobs during the construction stage. Therefore, an increase in construction and employment can be expected in Durban’s outer west in 2023,” he said.
Kaunda said Transnet had also announced plans to expand in the city. “However, it is expected that much of 2023 will be spent on planning.”
Transnet is estimating that the Port of Durban would require an investment of about R130.7bn, which would contribute an average of 1.8% a year to the city’s GDP over 17 years, starting from next year to 2040, he said.
The Bayhead and Langeberg Roads Upgrade and Automotive Terminal Expansion, Kaunda said, was expected to begin in 2023/24, with an estimated investment value of R647 million.
“In addition to upgrades to existing roads, we are finalising discussions and cost sharing agreements to build a second access road to the port. This is critical for clearing congestion from the Port of Durban and to the CBD,” he said.
Kaunda said some of the investment they hoped to draw on to reach the R200bn target included:
- The R8bn Keystone Logistics Park Development in Hammarsdale.
- Cato Ridge Freight and Logistics development with an investment value of R18bn.
- The R10bn Brickworks Development in Avoca, north of Durban.
- The R7.5bn Durban Film City at the former Natal Command building.
- The R7.7bn Sappi Saiccor Mill upgrade and expansion project.
- The R6.5bn Auto Supply Park by Toyota and R3bn for the manufacturing of the new Corolla Cross.
- The R1.8bn Whetstone development which forms part of the Aerotropolis development in the Dube Trade Port.
“To achieve true economic transformation, we ought to empower small enterprises and co-operatives,” he said.
During the panel discussion, the panellists spoke about the challenges and opportunities for the city’s and province’s economies.
Palesa Phili, chief executive of the Durban Chamber of Commerce and Industry, said it was important for critical infrastructure to be properly maintained and the issue of safety had to be addressed.
Moses Tembe, KZN Growth Coalition co-chairperson, said Durban was a “rough diamond” and there needed to be attention given to critical issues.
“If we can’t keep the city clean and safe, people will never believe that we have the capacity to do much bigger things.”
Andrzej Kiepiela, of the KZN Growth Coalition, said the city’s biggest asset was that it was the hub for logistics for southern Africa.
“We need to make sure that we not only maintain but are streets ahead in terms of the infrastructure that is required for the logistics sector to prosper and to facilitate further growth.”
Speaking about the sustainability of township small businesses, entrepreneur Zanele Luvuno said there needed to be partnerships that involved government and corporates to assist these businesses to survive especially when retailers expanded their footprint into these areas.