Consultants propose ICT hub in Durban inspired by Silicon Valley
Consultants working with the eThekwini Municipality have punted the idea of creating an Information and Communication Technology hub, similar to Washington’s Silicon Valley, near Cornubia, north of Durban.
Silicon Valley in the USA is known for being the global centre of the technology industry, with tech companies like Google and Meta.
In a report to the eThekwini Council on Thursday, the Economic Development and Planning Committee provided councillors with feedback from a private sector Memorandum of Agreement (MOA) that conducted feasibility studies within the Durban Aerotropolis Zone.
In March 2024, the council approved an MOA to conduct a study to determine the viability, bulk infrastructure requirements, and economic value for three initiatives at a site to be called Shaka’s Ridge:
- The development of a Formula 1 racing track.
- A railway line linking to King Shaka International Airport.
- A Zulu Amusement Park.
With regard to the railway line, a pre-feasibility study for a 16km rail line amounted to an estimated cost of R24 billion. This included bulk infrastructure costs to support the mixed-use development across the 762 hectares of Shaka’s Ridge.
According to the report, due to complex land ownership issues, the consultant could not enter any formal discussions or negotiations regarding the land acquisition because the landowner, Tongaat Hullett, is in a business rescue process.
The consultant was unable to provide any further information on the feasibility of the F1 Track and Zulu Theme Park.
The consultant put forward an alternative concept of Durban’s Silicon Valley. This proposes the concept of an ICT-Business Process Outsourcing (BPO) Hub that will serve as South Africa’s tailor-made Data Centre Hub.
The municipality stated that the total bulk infrastructure has an estimated cost of R1.8 billion, with a total potential annual rates income anticipated to be R900 million.
“Following the engagements with the relevant line departments, the proposed way forward is to appoint consultants to undertake a feasibility and market study to inform the possible new developments and land release strategy on city-owned industrial and commercial land within the Cornubia Precinct,” the report stated.
On Thursday, councillors noted the alternative proposal that the consultant put forward for the development of the ICT-BPO on the municipally owned land in Cornubia.
Council also approved that the director of eThekwini Municipality Catalytic Projects conduct a feasibility study that will inform the land release strategy.
The municipal report stated that there was no financial implication to the municipality in carrying out the initial feasibility study by the consultant as per the MOA. All costs were borne by the consultant.
However, the municipality stated that the feasibility and market study on the alternative proposal should be funded by the Programme and Project Preparation Support Grant (PPPSG).
The estimated cost for the study is approximately R3.5 million, with a timeframe of between nine to 12 months to complete.
zainul.dawood@inl.co.za