Trade, Industry and Competition Minister Parks Tau has invited new investors to take advantage of opportunities in the ‘rising’ province
Sixteen multi-national and local businesses pledged to invest a total of R70.8 billion in their manufacturing plants and new property developments across the province over the next two years at the KwaZulu-Natal Investment Conference in Durban on Monday.
“This is an exciting step forward in achieving our goal of reaching our target of R100 billion [worth of investment] before the March 2025 South African Investment Conference,” Trade and Investment KZN chief executive Sihle Ngcamu said in announcing the pledges at the conference, which drew together about 700 business leaders and government officials.
Investment pledges spanned sectors from manufacturing, tourism, automotive and logistics to property development projects. Ngcamu said some related to developments that have already broken ground while others comprised greenfield projects and the expansion of existing manufacturing plants.
They included the R15 billion Westown mixed-use residential, retail and commercial property development in Shongweni; a R10.8 billion investment by Sappi Southern Africa to upgrade and improve the performance of its business; R10 billion in Seaton by Collins Property Development; R10 billion by Sortor; R5.9 billion in Salta Sibaya Phase 2 by the Devmco Group and R5.4 billion by Edstan.
Edison pledged R4.2 billion for the development of the Oceans South Tower in Umhlanga as well as for expansions in existing facilities and other developments in the province; Umdoni Point promised R3.6 billion for a property development on the South Coast; Toyota Southern Africa pledged R2.7 billion for the upgrade and modernisation of its South Durban plant; Club Med pledged R2.3 million for its resort in Tinley Manor and Moolman Group pledged R1.5 billion for a mixed-use property development.
Natal Portland Cement is investing R1.2 billion to expand its plant; Insimbi Ridge is investing R1 billion in logistics and warehousing; Richards Bay Minerals pledged R850 million for upgrades, while Growthpoint committed R800 million for property development and Defy pledged R500 million to modernise its infrastructure, equipment and networks.
KwaZulu-Natal Growth Coalition co-chair Moses Tembe called on economic development, tourism and environmental affairs MEC Musa Zondi to ensure projects proceeded swiftly.
“Most of the projects we have seen before as business drag on and on and the approvals that are meant to take three months end up taking two years. I appeal to all stakeholders to ensure when we come back here in six months that all the projects that are announced, and pledges made, are on the implementation side of the business,” he said.
Trade, Industry and Competition Minister Parks Tau said the support his department had provided to KwaZulu-Natal businesses in the face of Covid-19, the July 2021 social unrest and the April 2022 floods had been instrumental in helping businesses rebuild swiftly.
“Stats SA confirms that KZN is now leading with a growth rate of 1.1% and remains second in GDP contribution, representing 16% of the national economy,” Tau said.
He said the Presidential eThekwini Working Group was confronting service delivery problems that hindered investors, while the work of the National Logistics Crisis Committee had led to a 73% reduction in vessel congestion at the Port of Durban since November 2023.
Tau said many companies had committed to the Presidential Investment Drive, pledging significant investments in KwaZulu-Natal that would contribute towards the national target of R2 trillion in investment over the medium term. The country’s special economic zone (SEZ) programme had been instrumental in attracting capital investment at the Richards Bay Industrial Development Zone and Dube Trade Port, he added.
“These zones, along with KZN’s industrial parks, are pivotal for driving industrialisation across the province,” he said.
Richards Bay hosts major investors, including Wilmar Industries’ R1.5 billion edible oil refining plant, which supports agro-processing and logistics, and Nyanza Light Metals’ R15 billion titanium dioxide pigment project.
At Dube Trade Port, 57 investors, including Samsung and AIH-Mahindra, contribute to the manufacturing sector, with Toyota and Ogihara South Africa recently breaking ground on a R1.2 billion automotive investment.
“These investments highlight the impact of strong public-private partnerships and underscore the successes possible through our collaborative efforts. To grow these achievements, we need a unified approach across all levels of government to support economic growth,” Tau said.
Economic development MEC Musa Zondi said the summit was an essential step, not only in mobilising capital, but also creating a resilient and inclusive economy.
He noted that while South Africa had registered a trade surplus of R54 billion in the second quarter of 2024, KwaZulu-Natal had a deficit of R3.2 billion, adding: “This highlights the need for targeted strategies to attract foreign direct investment and to bolster our export capacities.
“Addressing crime remains a top priority as we implement robust strategies to mitigate risks and foster an atmosphere where businesses can operate confidently and without concern.”
KwaZulu-Natal Premier Thamsanqa Ntuli said investment had been prioritised through the 2019 Provincial Trade and Investment Strategy, which aimed to raise new and expansionary investments to R76 billion by 2024 and create about 68 000 jobs, while increasing the province’s export value to R1.28 trillion by 2024.
“Despite our commitment, current projections indicate that these targets may not be fully achieved by the end of the financial year. However, these shortfalls underscore the need to intensify our efforts and enhance our investment initiatives,” he said.
“SEZs should attract investment through advanced production technologies and robust linkages with global networks. In the context of the African Continental Free Trade Area, KZN has an unprecedented opportunity to boost exports and forge strong trade links across the continent, especially with its proximity to Southern and Eastern Africa, Asia and Europe.”
Ntuli said the province already hosted several global vehicle manufacturers and that expanding local production and assembly to deliver to African markets was possible “with the right incentives and a skilled workforce”.
“The growth of electric vehicles in South Africa presents a new frontier. With EV sales growing [globally] by over 85% between 2022 and 2023, we have a critical opportunity to develop local manufacturing capacity for EV components, further embedding KZN in the automotive value chain,” Ntuli said.
The province also faced difficulties that require immediate attention, noting that the decline in South Africa’s freight rail services, exacerbated by underinvestment and criminal activity, has limited Transnet’s operational efficiency and threatened the long-term viability of KwaZulu-Natal’s logistics sector.
“Port and logistics bottlenecks must be addressed and public-private partnerships could unlock efficiencies in certain ports,” he said.