US investors are eyeing Durban for possible investment opportunities that could position the city as a leader in property development, the tourism sector and in the ocean economy.
In a webinar last week, the municipality and other stakeholders presented opportunities to a delegation of potential investors from New York. The delegation, led by the Reverend Dennis Dillon, is expected to visit Durban later in the year.
Musa Mbhele, Durban’s city manager, said there are $200 million (R3.7 billion) worth of investment opportunities in the inner-city alone.
“We have strategic parcels of land that are located in close proximity to the ocean here and that present good opportunities for investment in tourism related real estate. There are also other opportunities in the ocean economy such as the Marina upgrade which is a multibillion-rand investment.”
Mbhele added that the City was also looking at diversifying public transport.
“We are looking to attract investors in things such as water taxi transportation. It’s a new concept in Africa, we have seen other cities in the world that have thriving water taxi transportation.
We are fast going to move in that direction and are looking for investment in that space. There are plenty of other opportunities, Durban is a booming tourism city.”
Moshe Motlohi, managing executive for the Eastern Region ports at Transnet, said the Port Master plan in Durban will reposition the port as one of top performing ports in the world.
“We are working together with the City on the Marina development and we want to create a modern Africa setting.”
Motlohi added that in revitalising the port they were looking at expanding the ship repair component.
“We want to attract the biggest ships to come to Durban. We want to do this because South Africa is in the middle of the Far East and the Americas. Due to the turmoil in the Suez Canal we want Durban to be positioned as the hub port that is going to be a point where East meets West. Some cargo from the East can be discharged at the Port of Durban and ships can take the same cargo to the West.”
Motlohi said that by doing this they will create more opportunities for Durban.
“Those big ships that will be transporting cargo will be required to be repaired at some stage. That is why we are also going out to market to call for people who want to invest in building a new ship repair facility, we believe we have a market and that for investors this opportunity will be profitable and create jobs. International investors should partner with locals for there to be skills transfer.” Vivian Reddy, executive chairperson of Edison Corporation, said that they have invested $220m in uMhlanga.
“UMhlanga Rocks is one of the tourist destinations in eThekwini that has an incredible location.
“We have built the first Radisson Blu Hotel in Durban and we brought a mall with international brands such as Gucci, Dolce & Gabbana and Versace.
“It was an incredible experience to get these international brands to invest in Durban. We need to market Durban more to get more international brands in Durban. Mr Dolce after meeting the City said he wants to invest even more in Durban.”
Reddy said he planned to build another 250 apartments and a Radisson Red hotel in uMhlanga Rocks.
“Besides the beachfront there are beautiful buildings in the inner city that can become heritage buildings and can be converted into residential space. We are excited and look forward to delegates coming to Durban and investing here.”
Dillon said he was excited to hear about the $200m worth of opportunities in Durban.
“I’m glad to link investors with opportunities in Durban and in Africa.
There is not enough leisure travel being done in Africa and we want to change that. We want to engage investors from America that can develop hotels and real estate in Durban. We look forward to coming to Durban.”
The Mercury