When the economy is in a slump, investing in infrastructure can ensure long-term business survival, according to Trade and Investment KwaZulu Natal (TIKZN) CEO, Zamo Gwala.
“Good infrastructure drives business development and the strong logistics infrastructure we have in the province – the two ports, the international airport, solid rail infrastructure and the Dube TradePort logistics and manufacturing hub – helps the KZN economy to thrive.”
He said the province had a “strong role” to play in South Africa’s manufacturing and agriculture sectors.
“The province’s manufacturing industry has been diverse, combining strong light and heavy industries,” Gwala added, and the manufacturing and logistics sector was one of the main contributors to the provincial gross domestic product (GDP).
“With new airfreight developments in the pipeline and negotiations for more flights to traditional global markets such as Europe ongoing, there are also massive opportunities for agricultural and agro-processing exporters,” he said.
Gwala admitted that there had been “serious challenges” in attracting investment over the past two years but noted that many investor concerns – good governance, political stability – were being addressed. “These things tend to happen in cycles and I believe we are heading towards an upswing,” he said.
He pointed to the opening of the new R95-million semi-knockdown assembly plant within the Dube TradePort Special Economic Zone last month as an indication of renewed investor confidence. Trade and Investment KwaZulu Natal attracted R2.1 billion worth of new investments into the province last year – with property development taking the highest share followed by manufacturing, according to the provincial MEC for Economic Development and Tourism, Sihle Zikalala.
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Good infrastructure drives business development. – Zamo Gwala
