/ 24 April 1997

The scramble for investment

A frenzy of activity around the Lubombo development in KwaZulu-Natal signals a drive to boost employment ahead of the 1999 elections. Jim Day reports

THE need to show progress on one of the largest development proposals in Southern Africa has Cabinet ministers, the premier of KwaZulu-Natal and the MEC for economic affairs and tourism, all scrambling to secure investment and build infrastructure ahead of the 1999 elections.

The Lubombo Spatial Development Initiative (SDI), an ambitious programme to develop tourism and agricultural projects in north- eastern KwaZulu-Natal, southern Mozambique and Swaziland, was given a jumpstart this week when Environment Affairs and Tourism Minister Pallo Jordan, KwaZulu-Natal Premier Dr Ben Ngubane and MEC Jacob Zuma met in Richard’s Bay to go over the scope of the project.

While it is clear that the key reason for the recent “frenzy” of activity surrounding the Lubombo SDI is to provide jobs and improve the infrastructure in one of the nation’s poorest regions, insiders say there is added pressure to show on-the- ground progress in anticipation of the approaching elections.

The Lubombo SDI project calls for government to provide planning and infrastructure to lure private investment into specific tourism and agricultural projects. A key is construction of the proposed R155-million tarred road along the coast from Hluhluwe, near Lake St Lucia, past Kosi Bay near the Mozambican border and on to Maputo.

Construction on the South African side is set to begin in August, and sources say the Mozambican government has secured funding for its portion.

That road and the feeder routes will open access to dozens of proposed farming operations and tourism developments centred around game reserves and the region’s unspoiled beaches.

“It is no use growing exotic papayas if they will simply lie and rot in the fields because there is no way of getting them from Makhathini to an export port,” said Zuma. “It is no use having a beautiful beach lodge on the coast if it requires a fancy four-by-four vehicle to get there.”

On the Mozambican side, United States billionaire James Ulysses Blanchard III is already moving forward on his $800-million plan to build “Club Med-type” resorts, hundreds of exclusive beachfront homes, game lodges, golf courses and possibly casinos, said development consultant Eugene Gouws, who is employed by Blanchard.

That project alone is being billed as the largest tourism venture in Southern Africa.

In South Africa, the largest single component of the SDI is at the Greater St Lucia Wetlands Park, which officials believe has the potential to become a tourist attraction on a par with Kruger National Park. Within six years, they hope to attract R300-million in investments to provide 5 000 tourist beds.

Studies have shown this could produce 2 000 long-term jobs and generate gross revenue of R600-million per annum.

Smaller developments have been proposed for Kosi Bay, Lake Sibaya, Sodwana Bay and at the nearby game reserves.

The agricultural projects focus on 30 000ha below Jozini Dam, particularly on the Makhathini Flats, where irrigation possibilities and the tropical and sub- tropical climate offer the potential of developing valuable fruit and vegetable crops.

Officials are focusing their development efforts on the Lubombo SDI not only because of the good prospects for profitable businesses, but also because of the dire need in the area – 90% of the households in several districts have average incomes of less than R800 per month, and it has the lowest literacy and highest unemployment levels in KwaZulu-Natal.

But the hurdles to attracting investment are enormous. Apart from the lack of infrastructure, many of the areas face complex questions of conflicting land claims and how tenure issues can be resolved. Until investors can be sure they will legally own the land they want to develop, they are not about to put any money on the table, SDI officials admit.

“The potential of northeastern KwaZulu- Natal is legion, but the realities are harsh,” said Ngubane. “[The SDI] is a development strategy that can unlock the wealth and jobs that are waiting to be developed in this land.”