The launch of the multi-billion-rand Westown Square development in Shongweni, west of Durban, has served as confirmation that Durban’s reputation as a fertile ground for private sector investment is on an upward trajectory.
This view was expressed by business and political leaders after the launch of the first phase of this historic development on Thursday.
Fundamentum Property, the developers behind this project, are optimistic about the Durban economy, to the extent that they are planning another multi-billion-rand development in Cornubia.
Carlos Correia, developer and CEO of Fundamentum Property, said further details about the new project will be shared in the coming months.
The company launched the “city centre”, which will serve as the anchor for other developments, including a hotel, housing, and a hospital.
The first phase represents an investment of R1.5 billion. Delivering his address at the launch, Correia reaffirmed confidence in the city’s economy and its potential to attract investment.
“We have heard the previous mayor (Mxolisi Kaunda) say Durban is open for business; we say, Durban has never been closed for business. The reason we invested here is that we are Durban residents and ratepayers, and we have always believed in the city, even when there were naysayers after the floods, riots, and challenges the city has faced. We never left; we always remained here to invest in the city of eThekwini,” he said.
Correia expressed satisfaction with the project. “Today, out of our 520 000 square-metre site, we are launching 49 000 square metres, which is under 10%. For the next few years, there will be extensive building, and hopefully, like the mayor said, it will become the next Midrand between Pietermaritzburg and Durban.”
He provided insights into the scale of the completed work at the first phase of the Westown development.
“Here in Westown Square, we have laid 6 million bricks, completed 66 000 square metres of paving, and used nearly 700 000kg of structural steel. We have moved soil from 45 000 truckloads, which does not include an additional 1.6 million cubic metres that were moved on the roads between the M13 and the N3 into Westown Square. We have poured 4 000 cubic metres of concrete just on the roads and planted 300 000 plants. We have our own nursery that started with the community,” he said.
Correia encouraged the city to continue helping to create opportunities for business by investing in bulk infrastructure.
“The initial R600 million investment made by the city in infrastructure has now attracted about R5 billion in investment, with R1.5bn opening today and R600m for the new hospital expected to commence construction in the next two months, among other developments.”
He said the proud moment was the jobs created. “We have 1 800 people on site working, averaging 1 000 over the past few months, with 1 000 full-time jobs created.”
EThekwini mayor Cyril Xaba said the development in Shongweni could be the first step in transforming the area between the two cities.
“This is reminiscent of Midrand in Johannesburg, which connects Johannesburg with Pretoria. This is going to be the first real smart city in KwaZulu-Natal, as the developers will manage Westown through technology while ensuring environmental sustainability.”
Westown Square is expected to generate approximately R21m per year in rates income. However, it is anticipated that the rates income will increase to more than R500m per year upon completion of the development in 2037.
“We have no doubt that the launch of Westown Square today sends a clear message that, indeed, Durban is open for business. With the increase in business confidence in the city, I am confident that we will witness many more similar projects in all our regions. In fact, we have now become a construction site in Durban. I am pleased that every year, we are unveiling multi-billion-rand projects that form part of the R217bn investment in catalytic projects that we are rolling out over the next five years.
“We are working hard as a city to secure and attract more investment. For this reason, we are implementing far-reaching reforms in our trading services units, which include water and sanitation, electricity and waste management.”
City manager Musa Mbhele expressed satisfaction with the city’s economic performance, adding that despite the major natural disasters the city has faced, it continues to attract investments.
“We are the only metro to add thousands of jobs; business confidence in the city has jumped by 38%, which shows that businesses are still confident in the city,” he said.