Buoyed by the 0.28% economic growth in the last quarter, KwaZulu-Natal Premier Thamsanqa Ntuli has set a 3% economic growth target for the 2025/26 financial year.

Addressing delegates at the provincial investment conference in Durban on Wednesday, Ntuli said he was optimistic that his province was on an upward economic trajectory and 3% Gross Domestic Product (GDP) was within reach, although the country and global economy were facing stiff challenges.

He said towns such as Richards Bay, Newcastle, Ladysmith, Kokstad, Port Shepstone, Pietermaritzburg, and Umkhuze are new growth poles alongside eThekwini.

He stated that the growing economy and creating job opportunities in these secondary cities will ease the pressure of urban overconcentration in Durban, while unlocking the untapped potential of regional economies.

“By strengthening our secondary cities, we are spreading opportunity, promoting regional competitiveness, and creating a more balanced, inclusive pattern of development. With this, we are targeting 3% economic growth in our province, and we will be happy to achieve that,” said Ntuli.

He stated that each of these towns has its own distinct comparative advantage, with Newcastle emerging as a centre of manufacturing excellence, while Richards Bay is a logistics powerhouse and industrial gateway. The South Coast and Midlands towns remain a beating heart of tourism and agriculture, while uMkhanyakude holds promise for agro-processing, eco-tourism, and renewable energy development.

“These secondary cities are becoming magnets for infrastructure investment – in roads, housing, bulk water, digital connectivity, and logistics networks. These investments strengthen inter-district connectivity through key corridors such as the N2 and N3, linking our inland and coastal economies into one seamless, competitive system,” said Ntuli.

He further announced that the Passenger Rail Association of South Africa (Prasa) will soon construct a railway line from Durban to Richards Bay and revive the old rail network linking Durban, Port Shepstone, and Pietermaritzburg.

To expedite the province’s economic growth, Ntuli also vowed to remove all bottlenecks that delay investment opportunities, adding that he has already created an investment office under his office to ensure that all red tapes are removed immediately.

The province is also an emerging property investment hotspot, reflecting both economic confidence and lifestyle appeal. In 2023, the province’s residential property market was valued at approximately R435 billion, representing about 6.4% of the national residential.

In last year’s investment conference, 17 companies pledged a collective R85.2 billion in investments across the manufacturing, logistics, mixed-use development, tourism, and renewable energy sectors, promising to create 82,271 jobs.

Economic Development and Tourism MEC Reverend Musa Zondi said to prove that last year’s investment conference was not a talk shop, he was happy to report that just less than a year later, nearly a quarter of these projects are already operational, with 60% already under construction.

“These include the Princess Mkabayi Mall stands as the biggest consolidated retail offering within a 100km radius – transforming the economic landscape of the rural Zululand District. On the South Coast, the first phase of the Umdoni Point Coastal Forest Estate has been completed and sold out,” said Zondi.

This year’s projected investment pledge is R100 billion.

willem.phungula@inl.co.za

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