Statement by KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Mr Sihle Zikalala during a media briefing to announce the hosting of world football summit and key upcoming investment projects
Programme Director,
Acting Head of Department, Mr Jerry Mfusi,
Tourism KwaZulu-Natal Acting CEO, Ms Phindile Makwakwa,
Trade and Investment KwaZulu-Natal CEO, Mr Neville Matjie,
The Head of Ministry, Mr Kwazi Mshengu,
Members of the Media Fraternity.
I would like to start by thanking you for responding to our invitation to this morning’s media briefing wherein we seek to update you on key developments which we feel augur well for the economic prosperity for the Province of KwaZulu-Natal.
We have in the recent past seen a remarkable increase in the number of investments taking place in KwaZulu-Natal and major conferences that injected billions of rands into our economy.
KwaZulu-Natal’s insatiable appetite for hosting mega global events has placed the province at the apex of places highly-recognized by global corporations, organizations and event organizers the world over.
Our province is indeed fast reaching its pinnacle as a “go to” destination for any global organization wanting to stage a world class conference or event.
Our province continues to add more to its portfolio of billions of rand worth of mega events which once more proves that it is in the league of its own when it comes to hosting high profile global conferences.
The recent feather in the cap comes from none other than the World Football Summit (WFS) whose gathering will be an all KwaZulu-Natal affair. This was after province’s successful bid to host this prestigious function for the first on the African continent.
Durban was chosen among a crop of other global powerhouses which included Hong Kong in China, Buenos Aires in Argentina and Canada with which our city was competing against after being invited to bid for the 2020 summit. This will certainly be the biggest event after the 2010 FIFA World Cup.
World Football Summit is the international event of football industry, gathering the most influential professionals in order to discuss the most relevant topics and generate business opportunities. It brings together 80+ countries, 2300+ attendees, 90+ speakers, 160+ clubs, 70% executives, 100+ media – with an estimated economic impact of about R800 million.
We will in the next few months work with different stakeholders such as football teams and associations to ensure that we maximize the impact of this mighty summit which has to live a visible legacy in our sporting sector.
Media colleagues, you will appreciate that the hosting of conferences and conventions such as WFS has what we call direct and indirect impacts. Therefore, when we speak of direct impacts we are referring to those activities that are closely aligned with hosting MICE (meetings, incentives, conferences and exhibitions) and their contribution to the province’s GDP. These could be receipts generated by hotels, tour operators, travel agents and restaurants.
The indirect impacts would of course be due to expenditure of participants and promoters of conventions and the job created as a result of hosting such massive gatherings and sporting events.
The estimated value of tourism business in KwaZulu-Natal is estimated to be in the region of R4 billion. Since its official inception in 2010, the Durban KwaZulu-Natal Convention Bureau (which forms part of Tourism KwaZulu-Natal) has played a crucial role in winning the bid to host over 50 key business or MICE events for the Province.
Over the next 10 months or so, our province will host seven major conferences which will generate closed to R500 million for KwaZulu-Natal. Here are some of these conferences:
- Meetings of the Parties (MoP7), 4-8 December 2018 – expecting 10, 000 delegates which means the economic impact would be in the region of R256 million.
- NACCW 22nd Biennial Conference 2019 and CYC-Net World Conference, 2 – 4 July 2019 – expecting close to 1,500 delegates with an estimated economic impact being in the region of R30 million.
- 70th Annual Meeting of International Society of Electrochemistry, 4 – 9 August 2019 expecting approximately 1,500 delegates with an estimated economic impact in the region of R48 million.
- World Congress on Drowning Prevention, 20-23 November 2019 – expecting approximately 3,000 delegates with an estimated economic impact in the region of R76 million.
As stated earlier, we are encouraged by the new wave of investments which are pouring into our province. Following his announcement in the SONA on the 16th of February 2018, President Cyril Ramaphosa led South Africa in hosting the inaugural Investment Conference from the 25th to 26th of September 2019. This successful conference raised R209 billion from domestic and international investors.
To ensure that we maximize our benefit from the Presidential Investment Conference, we hosted our own KwaZulu-Natal Investment Seminar on the 12th of October 2018 where we handed a booklet of 25 investment opportunities to President Ramaphosa.
We are happy to announce today that out of 46 investment commitments mentioned by the President during the Summit, 15 of them are the investment commitments we had packaged as the Province of KwaZulu-Natal. The net effect of these investments’ commitments will see R25.5 billion out of R110 billion destined for this province.
KwaZulu-Natal investors have also committed investments in the province within the next five years. Among these, SAPPI committed R7.7 billion, TOYOTA committed R40 billion, Sumitomo Rubber R1 billion, and Mondi R8 billion.
We are indeed encouraged by the bold steps from the private sector to invest in our economy. As government we are committed to continue making the environment conducive for doing business in this coastal province, including ensuring policy certainty and as well as ease of doing business.
Over the next five years, our successful entity, the Dube Trade Port is set to attract in excess of R18 billion in private sector investments. The second phase of Dube Trade Zone will be 43 hectares and this is set to house various business operations such as electronics, medical and pharmaceutical enterprises. The top level structures are expected to go up by 2020.
Once again, thank you very much for being with us this morning, wherein as the Provincial Government of KwaZulu-Natal, we felt it is necessary to continue sharing with you and the rest of the nation the latest developments with respect to economic development and indeed investments heading to our beautiful province!
Enquiries:
Bongani Shisa Tembe
Cell: 082 327 2600
Tel: 033 328 8000
