Vivian Reddy, chairman of Oceans Development, said South Africa faced a pivotal moment that required significantly greater investment across multiple sectors.
Image: Tumi Pakkies / Independent Newspapers
Investment, backed by strong governance and improved infrastructure, will be critical to unlocking South Africa's economic growth potential, business leaders told delegates at the KwaZulu-Natal Investment Forum on Thursday.
Speaking at the forum, Eskom Pension and Provident Fund CEO Shafeeq Abrahams said addressing infrastructure bottlenecks was essential if South Africa wanted to improve its global competitiveness.
“Addressing these challenges is not just a provincial priority; it is also a national priority," he said, adding that the opportunity expands beyond the ports.
“Logistical corridors connecting South Africa’s global trade and energy infrastructure improve security and water systems are crucial for South Africa’s economy."
Vivian Reddy, chairman of Oceans Development, said South Africa faced a pivotal moment that required significantly greater investment across multiple sectors.
“Our country urgently needs investment in various areas. Collectively, these sectors represent trillions of Rands in pensions. The government can't fund this alone; commercial banks can't fund this alone, and the private sector can't fund this alone,” he said.
Reddy added that projects must demonstrate strong governance, experienced delivery partners, and realistic demand assumptions.
“Institutional investors are not looking for exciting promises; they are looking for confidence and certainty. A lesson that I have learnt is that capital follows confidence, and confidence follows credibility, and credibility follows institutions. Trust is earned through delivery.”
Reddy said that the Oceans Development in Umhlanga contributes more than R150 million every year to the eThekwini Municipality in rates and utility charges.
“We hope that the Municipality is able to utilise it for the residents of eThekwini. We also employ about 17,000 people during construction.”
He added that the development had created significant employment opportunities, with approximately 17,000 people employed during the construction phase.
Reddy also said the project had advanced transformation objectives, noting that of the development's R5 billion investment, about R3 billion had been awarded to black-owned subcontractors.
“It also included 50% of women and youth being employed in the project,” he said.
Turning to the tourism and property markets, Reddy said investment in the Radisson Blu Hotel in Umhlanga had contributed to making Durban a more affordable destination than Cape Town.
“In Cape Town, a hotel night stay can cost you about R10,000 to R12,000 a night, but in Durban, it's around R3,500 to R4,000 per night. Even to buy a property, it's around R120,000 in Cape Town, while in Umhlanga, the highest place in the Ocean development is around R100,000.”
Reddy added that South Africa has all the resources to achieve economic growth.
“We require foreign collaboration between government and institutions for investments. We must work together to grow our country.”
BUSINESS REPORT