With the need for student accommodation being a pressing issue across the province, the Zulu Royal Household Trust is seeking to take the gap in the property market and boost its finances.

The Trust recently appeared before the KZN Legislature’s Finance Committee, where it outlined its plans to become self-reliant. In a desperate hunt for business activities that could generate revenue and ensure financial stability, it announced plans to enter the student accommodation market, citing immense revenue potential.

The trust informed members of the Finance Portfolio Committee that it aims to invest in student accommodation, with plans to provide close to 2,000 beds for students in various areas across the province. The project will require approximately R300 million to finance.

However, Finance Committee chairperson Mthandeni Dlungwana said while the trust had revenue-generating ideas, it failed to execute on these plans. The trust is under immense pressure to generate its own revenue, enabling it to manage its affairs independently of the government. Established years ago for this purpose, it has yet to deliver on its mandate.

Sipho Buthelezi, Chief Financial Officer of the Royal Household Trust, informed the committee about the efforts being made to make the trust financially active. He said they are identifying suitable investment opportunities, focusing on medium and long-term projects, primarily in agriculture and property development.

“Our plans to prioritise property development are based on the fact that we have identified student accommodation as one of the projects that could generate revenue for us with lower risk.

“We will be implementing this project over the next two financial years because it falls under long-term projects; it is not something that can be financed within a single financial year.

“Student accommodation was identified due to a growing demand for secure housing in the province. We are looking at developing accommodation for 1,500 to 2,000 students, with potential for phased expansion.

“The feasibility study has been completed, and we have also conducted a detailed financial analysis to assess the project’s viability. Currently, we are in discussions with the relevant tribal authority to secure land. The next phase will involve site inspections, as we have engaged potential investors interested in building student accommodations,” he said.

He added that they were also looking at beef production, which will start with 400 animals and a 6,000 square metre plot, which has the potential to supply 1,200 animals, creating significant employment in the Zululand area.

As part of the broader strategy to make the Royal Household Trust self-sustaining, they will be visiting the Royal Bafokeng in the North West on a study tour to understand how they became self-sufficient, as this is the model they might like to adopt. Buthelezi stated they will be using their allocation from the provincial budget for seed funding and will seek to raise additional funds to finance projects, considering public-private partnerships (PPPs).

Dlungwana said: “The student accommodation is a new project; there is nothing you have finalised since we met last year. Not one project is at a proper planning or business finalisation stage; it’s a worry. It seems the year may pass without any concrete plans. We can’t just have new ideas; we have to concretise them into a business plan.”

Tim Brauteseth, a DA member of the Finance Committee, questioned where the funding for the student accommodation would come from.

“I agree it’s an interesting idea; the committee, along with finance, should examine it to ensure that we are on the right track. We need to be sure where the funding is coming from; if it’s coming from anywhere in the province, we need to be involved in that.”

“I am concerned about the construction of white elephants; you might construct something that might not work at the end of the day. I am concerned about that.”

In response to the concerns raised, Buthelezi stated they would address the issue of capacity within the trust and fill some vacancies to deliver projects, acknowledging that some of the projects they had tabled before had fallen through.

THE MERCURY

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