Durban - KwaZulu-Natal is safe, secure and ready for business.
This is the message, Premier Sihle Zikalala plans to take investors and the international community at meetings in Gauteng this week following the recent rioting and looting that had a devastating impact on the province’s economy.
Zikalala’s office said he would be on the charm offensive this week to reassure investors and the international community that the province is ready for business and to showcase the KZN Investment Book.
“KwaZulu-Natal is still reeling from the unfortunate events of the past couple of weeks which threatened to bring the province’s economy to a halt,” Lennox Mabaso, the Premier’s spokesman said in a press statement.
“Information at hand indicates that the unrest resulted in destruction across every sector of the provincial economy.
“Malls, Shopping Centres, Hospitals, Schools, Warehouses, Factories, Banks, ATMS, Liquor outlets, Liquor distributors, Delivery trucks and Communication infrastructure were among the destroyed infrastructure,” he said.
The shutting down of key arterial routes from the Ports of Durban and Richards Bay had a devastating impact not only to the provincial economy but disrupted the country’s supply chain logistics.
An estimated 800 stores were looted and 100 malls were either burnt down or suffered significant fire damage and a number of distribution centres, particularly in Durban, KwaZulu Natal, were looted with serious structural destruction.
The eThekwini Economic Development and Planning Committee says about R1.5 bn has been lost in stock, a R15 bn loss to property, over 50 000 informal traders have lost their livelihoods, approximately 1.5 million people have lost their potential to earn an income and there are some 150 000 jobs at risk.
The overall result of the devastation is that there has been an estimated loss to the eThekwini GDP of upwards of R20bn.
The Premier’s office said that at a social level the unrest threatened progress made since the end of apartheid in fostering unity non-racialism, non-sexism and a prosperous South Africa. Thousands of jobs and food security were placed at risk and jeopardised social cohesion and moral regeneration,” Mabaso said.
According to one estimate by the KZN Agricultural Union (KWANALU), the unrest demolished 55% economic activity in rural towns.
At least 64% of rural towns experienced severe food shortages.
In this regard, the Premier’s message during the two-day meeting is clear: The security situation has been stabilised and KZN is now ready, and open for business, Mabaso said.
He said that key to the message is that beyond the initial period of consolidating safety and security, raising destroyed infrastructure and returning to normality, KZN is resetting the economy towards greater inclusivity and co-ownership.
“We will build a solid skills base and employment. The medium to long-term response will focus on reassuring, rebuilding and ensuring that KZN is rising and uniting at the same time. Our view is that in post-conflict situations, employment is a major factor in achieving short-term stability, socio-economic progress and sustainable peace,” said Premier Zikalala.
KwaZulu-Natal’s Economic Recovery and Transformation Plan includes the acceleration of catalytic projects to drive economic growth and employment creation. In this regard the province has disaggregated the economy into 15 critical sectors which will revive exports and investment growth. These will re ignite the KZN investment landscape through the 200 projects in the KZN Investment Book.
The sectors are:
▪ Agriculture and Agro-Processing
▪ Clothing and Textiles
▪ Creative Industries
▪ Finance and Services
▪ Fourth Industrial Revolution (4IR), ICT and Innovation
▪ Health Innovation and Manufacturing
▪ Industrial Development
▪ Informal Sector
▪ Infrastructure Development (Water, Energy and Sanitation)
▪ Investment and Trade
▪ Manufacturing (Automotive, paper and pulp)
▪ Mining and Mineral Beneficiation
▪ Oceans Economy
▪ Tourism
▪ Transport and Logistics (Rail, Road and Air)
The economic interventions will further include the detailing of relief funding for companies impacted by the unrest and,
▪ Explaining the solid measures put in place for early detection of conflict in order to prevent it from happening;
▪ Sending a unified message to reassure investors of stability.
The delegation includes MEC for Economic Development, Tourism and Environmental Affairs Ravi Pillay; MEC for Health Nomagugu Simelane; MEC for Agriculture and Rural Development Bongiwe Sithole-Moloi; MEC for Transport, Community Safety and Liaison Neliswa Peggy Nkonyeni; MEC for COGTA Sipho Hlomuka and MEC for Education Kwazi Mshengu.
On Thursday the premier will host various strategic engagements culminating in a dinner co-hosted with the Diplomatic Corps in Pretoria.
Among the countries on the Premier’s diary are the Republic of South Korea, the United Kingdom, Mauritius, Australia, the Democratic Republic of Congo, Singapore, Denmark, Turkey, Egypt, Brazil, Netherlands, and the Federal Republic of Germany.
IOL