Durban's uShaka Marine World receives R14 million cash injection to keep it afloat
Image: Picture: Gcina Ndwalane
uShaka Marine World is experiencing financial challenges and will receive a R14 million cash injection so that it remains a going concern.
The majority of eThekwini councillors approved the payment to the Durban Marine Theme Park (DMTP) which is controlled by the municipality, at a council meeting on Thursday.
uShaka Marine World is located along the City's main beachfront and was conceived as part of the redevelopment of the Waterfront in 2003. The objectives of the creation of uShaka Marine was for it to be a strategic tourism facility for the City of Durban as well as the province of KwaZulu-Natal as a whole.
uShaka Marine World entered into an indefinite agreement with the South African Association for Marine Biological Research (SAAMBR), a Non-Profit Organisation, in which SAAMBR is responsible for the operations of Sea World. In return and provided for in the Heads of Agreement, the Municipal Entity is responsible for providing funding for their operations, stated a municipal report.
As per the addendum to the heads of agreement, this annual amount is a grant to the municipal entity by the eThekwini Municipality. In a council meeting held in 2024, council resolved that the DMTP is operating on or close to a break-even level.
According to the municipality the cashflow challenges are attributed to the current business model as well as institutional arrangements. These issues become much more pronounced during the low trading periods of the park wherein the monthly cash generated is less than the cash required to meet the mandatory expenditure for the corresponding period.
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This meant that the entity has to accumulate sufficient cash during the high peak season to carry it through its off-peak season. This, coupled with historical debt, has had a huge drain on cash resources.
Due to very slow cash flow, the entity has not been in a position to pay both the credit agreements as well as the current billing on utilities since October 2024.
To address the negative impact of the repayment of the utilities on the entity's cash flow, a new credit agreement is being explored to settle the debt. This will result in the terms of the settlement agreement being re-determined in a manner that is more optimal for the liquidity of the DMTP.
The DMTP is working on a turnaround strategy that will be concluded in July 2025 said Thembo Ntuli, ANC councillor and Chairperson of the Economic Development and Planning Committee.
Ntuli emphasised that the decision taken to give the utility R14 million is not a 'bail out' but rather a strategic investment.
"Without this funding, the park may be forced to scale down or suspend operations putting jobs, tourism revenue and city reputation at risk. Let us remember, uShaka Marine World is more than a theme park. It is a tourism magnet and a source of pride for eThekwini," Ntuli said.
Saneli Zuma, ActionSA councillor, was concerned about how much longer the municipality will inject millions into the DMTP theme park while ignoring the real issues that keep tourists away.
'If we are serious about turning things around, the city must first invest in resuscitating its tourism ecosystem—revive the beachfront, ensure clean and safe public spaces, and improve basic infrastructure. Only then will tourists return,' she said.
Zuma also suggested that the DMTP must improve on its marketing campaigns and partnerships.
zainul.dawood@inl.co.za
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