Trade, Industry and Competition Minister Parkes Tau invited new investors to take advantage of opportunities in the 'emerging' state
Sixteen multinational and local companies pledged to invest a total of R70.8 billion in manufacturing plants and new property development in the province over the next two years at the KwaZulu-Natal Investment Conference in Durban on Monday.
“This is a great step forward towards achieving our R100 billion target.” [worth of investment] “Ahead of the South African Investment Conference in March 2025,” Trade and Investment KZN chief executive Siele Nkam said as he announced the pledge at a conference attended by around 700 business leaders and government officials. said.
Investment commitments range from manufacturing, tourism, automobiles and logistics to real estate development projects. Nkam said some relate to developments that have already begun construction, while others consist of greenfield projects and expansions of existing manufacturing plants.
This includes R15 billion for the Westown residential, retail and commercial mixed-use development in Shonweni. R10.8 billion investment by Sappi Southern Africa to improve and improve business performance. R10 billion for Seton by Collins property development. R10 billion by Sorter. In Salta Sibaya Phase 2, Devmco Group invested R5.9 billion and Edstan invested R5.4 billion.
Edison has committed R4.2 billion to the development of Oceans South Tower in Umhlanga, as well as the expansion of existing facilities and other developments in the province. Umdoni Point has committed R3.6 billion to property development on the south coast. Toyota Southern Africa has committed R2.7 billion to upgrade and modernize its South Durban plant. Club Med has committed R2.3 million to the Tinley Manor resort, while Moolman Group has committed R1.5 billion to the mixed-use property development.
Natal Portland Cement is investing R1.2 billion in the expansion of its factory. Insimbi Ridge is investing R1 billion in logistics and warehousing. Richards Bay Minerals has committed R850 million for upgrades, while Growthpoint has committed R800 million for property development and Defy has committed R500 million for modernizing infrastructure, equipment and networks.
KwaZulu-Natal Growth Coalition Co-Chairman Moses Tembe called on MEC for Economic Development, Tourism and Environmental Affairs Moussa Zondi to ensure the project is brought forward quickly.
“Most of the projects we've seen as a business drag on and on, and approvals that should have taken three months end up taking two years. “I appeal to you to ensure that all announced and promised projects are on the business side when you return,” he said.
Minister for Trade, Industry and Competition Parkes Tau said the support his ministry had provided to KwaZulu-Natal businesses in the face of COVID-19, civil unrest in July 2021 and flooding in April 2022 had helped businesses quickly He said it was helpful in rebuilding.
“The Department of Statistics confirms that KZN now leads the way with a growth rate of 1.1% and remains second in terms of GDP contribution, accounting for 16% of the national economy,” Mr Tau said.
He said the work of the National Logistics Crisis Committee had reduced shipping congestion at Durban Port by 73% since November 2023, while the President's eThekwini Working Group faced service delivery issues hampering investors. Ta.
Mr Tau said a number of companies have joined the Presidential Investment Drive and have committed to making significant investments in KwaZulu-Natal contributing to the national investment target of R2 trillion over the medium term. He added that the country's Special Economic Zone (SEZ) program has helped attract capital investment to the Richards Bay Industrial Development Zone and Dube Trade Port.
“These zones, along with KZN's industrial parks, are critical to driving industrialization across the state,” he said.
Richards Bay has attracted major investors, including Wilmar Industries' R1.5-billion edible oil refinery plant to support agro-processing and logistics, and Nyanza Light Metals' R15-billion titanium dioxide pigment project.
Dube Trade Port has 57 investors contributing to the manufacturing sector, including Samsung and AIH Mahindra, 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 highlight that success is possible through our collaborative efforts. To scale these results, we must support economic growth. We need a unified approach across all levels of government to do so,” Tau said.
Economic Development MEC Moussa Zondi said the summit was an essential step not only in mobilizing capital but also in building a resilient and inclusive economy.
He noted that South Africa had a trade surplus of R54 billion in the second quarter of 2024, while KwaZulu-Natal had a deficit of R3.2 billion, adding: “This will attract foreign direct investment and strengthen export capacity.
“Tackling crime remains a top priority as we put in place strong strategies to reduce risk and create an atmosphere where businesses feel safe and confident in operating.”
KwaZulu-Natal Premier Thamsanka Ntuli says investment is being prioritized through the 2019 Provincial Trade and Investment Strategy, raising new and expansion investment to R76 billion by 2024 and creating around 68,000 jobs. He said the aim was to increase the state's export value to R1.28. By 2024, it will reach $1 trillion.
“Despite our commitments, current forecasts indicate that these goals may not be fully achieved by the end of the fiscal year. “We emphasize the need to strengthen investment initiatives and strengthen investment initiatives,” he said.
“Special Economic Zones need to attract investment through advanced production technologies and strong linkages with global networks. Because of our proximity, we have an unprecedented opportunity to boost exports and build strong trade relationships across the continent.”
Ntuli said the state is already home to several global car manufacturers, and expanding local production and assembly to supply the African market is “with the right incentives and a skilled workforce. ” said it was possible.
“The growth of electric vehicles in South Africa is breaking new ground. As EV sales grow [globally] With an increase of over 85% between 2022 and 2023, we have a significant opportunity to develop local manufacturing capacity for EV components and further integrate KZN into the automotive value chain,” said Ntuli. I did.
The province also faces challenges that require immediate attention, with declines in South Africa's freight rail services, exacerbated by lack of investment and criminal activity, limiting Transnet's operational efficiency, and KwaZulu-Natal. pointed out that the long-term survival of Japan's logistics sector was threatened.
“Port and logistics bottlenecks need to be addressed, and public-private partnerships could improve the efficiency of certain ports,” he said.
