Durban - To prevent the “flight” of industries from the South Durban Basin (SDB), the eThekwini Municipality has announced an investment of R235 million for infrastructure upgrades in the area after the April floods left several businesses unable to operate.
Over the next three financial years, R235m will be invested to upgrade infrastructure and mitigate the risk of further flooding, a report tabled by the municipality said.
The report, tabled before the executive committee yesterday, revealed that R92m would be spent in the 2023-24 financial year, R118m in the 2024-25 financial year and R25m during the 2025-26 financial year.
Some of the infrastructure that needs to be upgraded belongs to the municipality while the rest is owned by government departments or entities.
Councillors were told that the city had to act to ensure that the multinationals that have operations in the area remain there and within the city.
The news received a thumbs-up from councillors who described the announcement as long overdue. Others said the city had to do all it could to protect businesses, jobs and the community of that area.
The floods in April, and those in 2017, caused billions of rand in damage for these companies and some were forced to close to rebuild. This has led to these companies finding it difficult to be insured.
“lt is these losses that has prompted the insurance industry to question the insurability of companies situated within the SDB,” said the report.
“For a multinational company, it means that the other facilities around the world would need to share the risk of these South African-based companies and this increase in risk would reduce their company value and associated share price,” it said.
The report said the flooding of the Prospecton area and the N2 within the South Durban Basin had resulted in a number of studies commissioned by the municipality, the South African National Roads Agency and multinationals.
These identified several possible mitigation measures which if implemented, would dramatically reduce the risk of flooding within the Prospecton area.
It said the Coastal, Stormwater and Catchment Management Department of the municipality had identified several options that needed to be assessed and addressed.
The report revealed that R90m would be spent over two financial years for work on the Clark Road Sea Outfall and Culvert, R80m would be spent on the Canal Upgrade over two years, and R25m would be spent over two years on road improvements.
“These amounts are not funded at present and require a strategic decision by council on the allocation of funding in order that eThekwini Municipality can play its role in ensuring that these threatened businesses remain within the South Durban Basin thereby ensuring the economic stability in the region and country,” said the report.
IFP councillor Mdu Nkosi and DA councillor Thabani Mthethwa both supported the initiative.
THE MERCURY