KwaZulu-Natal has pledged to introduce sweeping economic initiatives to attract sustainable investment to boost the provincial economy where unemployment now stands at 29% and is still reeling from the devastation caused by the July 2021 riots and civil unrest.
The initiatives, outlined by premier Sihle Zikalala at a media briefing on Sunday, include a summit on March 10-11 that will bring together more than 100 CEOs, as well as swift action to harvest the opportunities of establishing a cannabis-hemp industry.
“Our government continues to engage local investors and businesses and next week will host a summit of the KwaZulu-Natal Growth Coalition on the south coast,” he said.
“This activity will bring together more than 100 CEOs of companies. Our target is to address our unemployment rate, which has now risen to 28.7% from about 23% before the Covid-19 pandemic.
“This administration wants to be more performance-driven, measurable and impactful in changing the lives of the people of KwaZulu-Natal. Indeed, we want to exercise more agility and precision in driving the agenda of economic transformation and in attracting investment, within the context of a global economy that is still recovering after being battered by the Covid-19 pandemic,” said Zikalala.
KwaZulu-Natal declared a state of disaster in response to the devastation caused by the July uprising last year.
Key projects for the region announced by Zikalala include investments of R800m by the Blythedale Coastal Estate that will create 2,000 jobs; R120m by Capita contributing 500 jobs; and R800m by Nqanawe Holding for the manufacturing of tractors that will create 200 jobs.
Zikalala said the provincial executive council (PEC) has also decided to submit key strategic projects for consideration and funding by the African Export-Import Bank, a pan-African multilateral trade finance institution. In the initial phase, the province is submitting its portfolio of agri-hub projects.
“Agri-hubs are key catalytic projects with a huge potential for job creation and economic growth,” he said.
“The agri-hubs portfolio includes the red meat hub (cattle abattoir, pig, goat sheep abattoir, deboning facility, distribution centre); grain handling hub (white, yellow maize, beans, soya bean); fresh produce hub (bulk vegetable distribution, vegetable processing, banana handling); and a dairy hub (which incorporates raw-milk tanks, a UHT facility, a distribution centre, an amasi factory and a yoghurt factory).”
He said that following President Cyril Ramaphosa’s state of the nation address, the province had formed a multidisciplinary committee to develop the cannabis-hemp industry. He estimated this industry to have a potential worth of more than R28bn in SA and the ability to provide 10,000 to 20,000 job opportunities across the entire value chain.
The PEC has also reprioritised a R10m relief grant for rural and township shops that were affected by the looting and unrest and increased the provincial youth employment fund to support young people from R50m to R100m.
In a first for the province, the Zimele Traders Fund has been approved to uplift community-based rural and township shops through the provision of working capital loan funding and payment automation facilities.
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