Northern Growth Corridor

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KZN Northern Growth Corridor

Kick starting infrastructure development in KwaZulu-Natal

In early December, Deloitte hosted a Bulk Infrastructure Workshop for developers in both the private and public sector with the aim to address existing development barriers and to recommend possible solutions to overcome the challenges holding back potential developments in KZN.

Durban is currently one of the fastest growing cities in Africa with a population of around 4 million and an expected growth rate of 30 percent by 2020 (according to STATS SA).  As a result, there exists an urgent need to speed up development in order to create jobs and fast track economic growth.  With 452 development projects valued at R1.7 trillion in the pipeline, Durban is aiming to develop its infrastructure in order to support this growth rate.  The problem, however, lies in administrative backlogs as well as the shortage of funding for bulk infrastructure and services that are delaying approval of much needed developments and causing costly delays.  

In order to address this issue, Deloitte KZN hosted a Bulk Infrastructure Workshop for a variety of stakeholders in both the public and private sectors, providing a valuable opportunity to put key issues on the table and to try identify possible solutions.

Just over a month ago, the KZN Economic Development, Tourism and Environmental Affairs MEC Mike Mabuyakhulu told the KZN Growth Coalition that 452 outstanding development projects valued at R1.7 trillion were still awaiting environmental impact assessment approval in KwaZulu-Natal. It also emerged that complications associated with zoning legislation were holding up a number of greenfields developments, including six major commercial and industrial parks.

One of the key objectives of government in the KwaZulu-Natal province is economic growth and job creation. In order to achieve this, as much development as possible needs to take place, but many of these developments are currently being delayed for various reasons.

Deloitte called for action from both government and business leaders for closer collaboration to address administrative backlogs as well as the shortage of funding for bulk infrastructure and services. These obstacles are delaying approval for much needed developments and causing costly delays.

Debating the key issues and finding solutions to Bulk Infrastructure Funding.
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