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IOL News
a day ago
- Business
- IOL News
Colenso power project: Almost R10 billion investment to create thousands of jobs in KZN
Colenso Power Project, while privately funded, is a catalytic investment and is valued at R9.78 billion. Image: Independent Newspapers Archives A multibillion-rand energy project that is underway in Colenso, in northern KwaZulu-Natal is expected to create thousands of jobs in the town as well as in Estcourt and Ladysmith. The Colenso Power Project is valued at close to R10 billion and has been in the planning phases for some time, undergoing various legal compliance processes. The KZN Department of Economic Development, Tourism and Environmental Affairs (Edtea) stated that this project is critical in ensuring that the province's economy is not concentrated in major cities. Edtea said the Colenso Power Project, while privately funded, is a catalytic investment supported by the Department through packaging and facilitation. Valued at R9.78 billion, it features a hybrid base-load power facility utilising clean fuels, hydrogen, and battery storage, marking a national-scale anchor for the uThukela District. Documents related to the project indicate that it will significantly increase employment opportunities for local communities. It is anticipated to generate 10,000 jobs for the Alfred Duma Local Municipality and the Inkosi Langalibalele Local Municipality, with 15% of these jobs allocated to the Colenso community. In addition to creating employment opportunities, it will bring in experienced and well-known foreign contractors, investors, and project management teams that will collaborate closely with local communities. Debbie James, the CEO of Colenso Power, detailed the implementation plan for the project. 'Colenso Power is developing a large-scale Clean Fuels and Chemicals plant along with a Hybrid Solar PV and Hydrogen Gas Turbine.' Video Player is loading. 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Advertisement Next Stay Close ✕ Ad loading The Clean Fuels and Chemicals plant will produce 700 tons of hydrogen, 1,000 tons of ammonia, and 5,000 tons of fertiliser per day. 'Our goal is to establish South Africa's first 'Absolute Zero' Clean Fuels, Chemicals, and power plant.' She explained that Phase 1 involves the construction of four 375 MW Solar PV plants, four 75 MW Hydrogen Electrolyser plants, and the 600 MW Hydrogen Gas Turbine Combined Cycle power plant over three years. Phase 2 will see the construction of the Clean Fuels and Chemicals plant in parallel to Phase 1 over five years. James noted that the types of work available will include in the fields of civil construction, mechanical construction, heavy industrial construction, and electrical infrastructure construction, catering to unskilled (construction services, security, manual labour, etc.), semi-skilled (trained assembly and installation), and skilled labour (engineering, artisanal, supply chain/logistics, project management, accounting, and administration). 'Full notice to proceed is planned for Q3 2025,' she said, adding that the award of contracts for some work is expected next month. The mayor of Inkosi Langalibalele Municipality, Mduduzi Myeza, stated that the project would be critical in uplifting the local community. 'We will soon be meeting with the people leading the project to get specifics on how it is unfolding, but what we can say is that this will uplift the community. The area close to where the project is being carried out is a deeply rural community with limited opportunities, so this project will have a significant impact.' MEC for Economic Development, Musa Zondi, emphasised the project's importance in reviving small towns. 'If you consider all the other small towns in the province, they have been struggling since the decline of the coal industry. This project presents an opportunity to create jobs and revitalise those small towns,' he said. Mafika Mndebele, chairperson of the Edtea committee in the KZN Legislature, said the project was a bold and catalytic intervention which could revitalise the economic fortunes of small towns like Colenso. 'The committee views this project not merely as an energy-generation initiative, but as a strategic lever for inclusive economic transformation in the uThukela District. Given the region's history of industrial decline and rising unemployment, a project of this magnitude offers renewed hope for job creation, local infrastructure development, and enterprise stimulation—particularly in construction, transport, and support services.' 'Furthermore, the committee is encouraged by the project's alignment with South Africa's Just Energy Transition goals, incorporating clean fuel technologies, hydrogen energy, and battery storage. If implemented responsibly, with strong community engagement and regulatory compliance, the Colenso Energy Project could serve as a model for how energy investments can drive regional development while advancing our commitments to environmental sustainability and energy security,' he concluded. THE MERCURY
IOL News
14-05-2025
- Business
- IOL News
Understanding the Banks Act exemption: MEC Zondi's insights on Ithala
KwaZulu-Natal Economic Development, Tourism and Environmental Affairs (Edtea) MEC Reverend Musa Zondi. Image: Sibonelo Ngcobo/ Independent Newspapers KwaZulu-Natal Economic Development, Tourism and Environmental Affairs (Edtea) MEC Reverend Musa Zondi has discussed issues surrounding the Banks Act exemption and the banking licence and how these affect Ithala SOC Limited. Zondi discussed the two topics during a media briefing called by the KZN government, led by Premier Thamsanqa Ntuli. Ithala SOC Limited CEO Dr Thulani Vilakazi was also present. Zondi explained that there is a provision in the Banks Act for an exemption to be granted to certain institutions, such as Ithala SOC, to operate as a fully-fledged bank without having to acquire a banking licence. 'That has been the case from day one until the powers that be decided that they were no longer going to grant it,' Zondi said. 'Denying extending the exemption to Ithala SOC may as well cause an amendment to the Banks Act to do away with the exemption regime.' Zondi said they are making Ithala operational because they are working within the law governing the banks in South Africa. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ He said he has been a parliamentarian since 1994, and from 1994, there has been a persistent call from parliamentarians that a state bank should be established. 'There has been no success to date. Ithala is the only, if you like, existing state bank which has been successful,' Zondi said. 'So why kill something that is already successful?' On Ithala's acquisition of a banking licence, Zondi explained that the reason they needed to acquire a banking licence is to comply with the current situation where the Prudential Authority has withdrawn the bank's ability to operate. 'As parliamentarians, when we drafted that Act we drafted it with state institutions like the land bank and others (in mind), will they need a commercial licence, do you need to privatise them. No, you don't need to privatise them and therefore that exemption clause was put in there,' Zondi said.
IOL News
14-05-2025
- Business
- IOL News
Unlocking job opportunities: KZN's cannabis processing facility initiative
The KwaZulu-Natal government is launching a Shared Cannabis Processing Facility to boost opportunities in the sector. Image: Pexels With grim employment statistics released yesterday, a new cannabis initiative in KwaZulu-Natal aims to unlock job opportunities, especially in rural parts of the province. The Department of Economic Development, Tourism and Environmental Affairs (Edtea) has recently detailed its plans for the sector, including a partnership aimed at piloting a Shared Cannabis Processing Facility. This project is critical, with at least one municipality, the Okhahlamba (Bergville) Municipality, hinging its hopes on it to address unemployment and boost the municipality's budget. The central focus of the project is processing cannabis into various products. Addressing unemployment needs urgent attention as Statistics South Africa's latest quarterly labour force survey, which was released yesterday, indicated that the unemployment rate has increased by one percentage point from 31.9% in the last quarter of last year to 32.9% this year. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Musa Zondi, the MEC for Edtea, stated that the industry presents an opportunity to enhance the rural economy. Edtea's rural economy strategy includes the formalisation and expansion of the cannabis and hemp sector, not as a side project, but as part of a centrally focused legitimate industrial activity. 'In this regard, we are piloting a Shared Cannabis Processing Facility in Bergville, in partnership with the Council for Scientific and Industrial Research (CSIR) and Industrial Development Corporation (IDC). This initiative will support oil and fibre production and incubate small growers, ensuring traditional producers enter the value chain meaningfully,' Zondi remarked recently. Okhahlamba mayor Vikizitha Mlotshwa expressed pride in their cannabis growing operation, stating it is 'excellent' and unique compared to other parts of the country. He mentioned that they have identified a facility in the area that could be used as a processing site. They have received one machine needed to process cannabis into other products and are waiting for an expert to service and assemble the machine while they work on acquiring a larger machine to process bigger volumes. 'We have received support from Edtea and other organisations. We hope to raise up to R10 million in funding in the coming months to invest in the project,' he said. 'This project started slowly; we planted, harvested, and then hosted an exhibition where many government officials came to see our progress. Edtea was one of the departments that were impressed with what they saw and committed to investing. Other entities have pledged about R5 million already.' He explained that the aim is to have the capacity to process their products. 'We want to produce about 400 products from cannabis, ranging from bath soap to lotion. We do not want to sell our product as raw material, as it yields little profit. Currently, we harvest and sell at low prices to someone who then makes real products and sells those for substantial profits.' The mayor noted that if the project works as anticipated, it could be a windfall for the youth and the municipality. 'Currently, we are facing youth unemployment close to 35%. If we launch this well, we could create jobs and reduce this to around 10%.' 'This could also be a significant boost for the municipality. We currently have a budget of R266 million, and with this project, our projections show that this could grow to nearly a billion due to the value chain that will be created,' he added. The project has been welcomed by Edtea committee members. Hannah Lidgett, DA MPL and spokesperson on Edtea, expressed support for the proposal, stating that the industry has immense potential. 'The hemp and cannabis sector could be a significant source of revenue and job creation in KZN. The shared cannabis processing facility is a fantastic project, but it must get off the ground as soon as possible. It is a step in the right direction, but we could create far more opportunities,' she said. 'The government needs to provide the support and enabling regulatory environment to allow this sector to grow. Many communities, especially in rural areas, could benefit. However, we need a comprehensive plan. I have submitted written questions to Edtea requesting whether the department has conducted research into the sector and the potential revenue and jobs it could create, as well as the plan to develop this sector given its enormous potential,' she stated. Chairperson of the Edtea committee, Mafika Mndebele, remarked that the announcement by the MEC to establish a shared cannabis processing facility in Bergville is a bold and progressive step toward unlocking the full economic potential of the rural economy. 'This initiative is not just about industrialisation—it's about localisation, beneficiation, and empowerment. Cannabis has long been part of traditional livelihoods in many rural areas. By formalising and processing it locally, we create a sustainable value chain that ensures communities are not just producers but participants in the entire economic ecosystem—from cultivation to commercial products.' 'The shared nature of the facility also promotes inclusive participation by cooperatives, small farmers, and youth-led enterprises—creating jobs, stimulating entrepreneurship, and contributing to local revenue,' he added. 'As the Committee, we will ensure there is strong oversight to avoid gatekeeping and ensure that this project becomes a model of rural industrial development, with broad-based participation and tangible benefits for the people of Bergville and the province at large," the chairperson concluded. THE MERCURY
IOL News
01-05-2025
- Business
- IOL News
Edtea MEC says closure of Ithala Bank would severely impact KZN's most vulnerable residents.
MEC for Economic Development, Tourism and Environmental Affairs (Edtea) Musa Zondi has emphasised the need for regulatory certainty to clarify the position of entities like Ithala SOC Limited. Zondi stated that the current challenges faced by the bank starkly contrast with the promises made by the country's parliament. He said, 'Most of the issues confronting this institution stem from its position in a regulatory gap—a gap that parliament can help close. The current version of the Financial Matters Amendment Act of 2019 excludes provincial entities from being licensed as banks. Zondi made the remarks while delivering his departments budget recently. 'However, parliament's own records indicate an intention to allow Ithala to continue operating under exemptions, pending further deliberations. What is needed now is not only regulatory certainty but also a major transformation exercise to ensure that Ithala SOC Limited continues to serve as a pillar of development, equality, and opportunity in KwaZulu-Natal and beyond.
IOL News
29-04-2025
- Business
- IOL News
KZN Tourism MEC says Drakensberg cable car project being fast-tracked after lengthy delays
The Department of Economic Development, Tourism and Environmental Affairs (Edtea) says it is doing all it can to fast-track the Drakensberg cable car project. The project has been on the cards for several years but is yet to get off the ground. Edtea MEC Musa Zondi said: "While we understand the delays that have been experienced with respect to the much-anticipated Cable Car Project, which is to be located strategically in Okhahlamba - in the majestic Drakensberg, we are doing everything in our power to fast-track the take-off for this project without further delays." Zondi was addressing members of the Legislature while tabling his budget recently. He said, "This is not a standard domestic tourism development; it is a cross-border initiative involving two countries (South Africa and Lesotho) and two provinces (KwaZulu-Natal and the Free State). Understandably, this has made coordination complex and, at times, slow." "But we are making progress. We are not working in isolation as KwaZulu-Natal or South Africa. Rather, we will be actively engaging our counterparts to move toward a shared agreement and coordinated implementation. We realise that it has not been easy, but we hope to find each other, and we in KwaZulu-Natal are committed to seeing this iconic, job-creating and destination-defining project through." During the presentation, the MEC also spoke of the need to boost other tourist sites. He said, "Ezemvelo KZN Wildlife is one of KwaZulu-Natal's jewels and strategic assets. We are committed to rebuilding it through financial injection and restructuring, strategic leadership, integration into the biodiversity economy, and alignment with ecotourism objectives." THE MERCURY
