Investment surge in KZN Mid-South Coast sees economic revival
Construction is taking place across the KZN Mid-South Coast, including large-scale developments within Renishaw Coastal Precinct, pictured.
Image: Supplied by Renishaw Coastal Precinct
Investment in the KwaZulu-Natal Mid-South Coast is on the rise across key sectors such as hospitality, retail, property, and healthcare signalling a potential economic revival.
However, while a developer is optimistic about the region’s growth, business leaders caution that unresolved infrastructure issues could hinder the area’s progress.
“The economic reawakening of the KZN Mid-South Coast is being felt throughout the area, with a number of key upgrades and developments over the past few years,” said Barto van der Merwe, managing director of Renishaw Coastal Precinct.
“With the Semigration trend, this region offers affordable investment, a subtropical climate, and a holiday lifestyle, all of which are driving property demand.”
He noted that major developments under way include renovations to Blue Marlin Seascape and Premier Resort Cutty Sark in Scottburgh, the opening of a new Hibiscus Hospital healthcare facility, and upgrades to beachfront retail areas. Lifestyle and recreational offerings are also expanding. New estates are burgeoning in the region, he said.
Van der Merwe believes the region is gaining renewed attention due to more affordable property prices compared to the Western Cape. “We’re seeing increased interest from both investors and families looking to relocate. That’s resulting in significant construction and service-related opportunities.”
Professor Waldo Krugell, economist at North-West University, said the long-term implications of this kind of Semigration-led growth are complex. “Once a town becomes a magnet for people whether due to climate, amenities, or affordability it benefits the local economy,” he said. “But unless you expand infrastructure, pressure mounts.”
Krugell added that higher property values also increase municipal revenue through rates and taxes, which can be reinvested in local development but such changes are gradual. “Construction benefits first, followed by service industries. This clustering is essential for sustainable local economic growth.”
Dick Basday of the South Coast Business Chamber agreed that infrastructure issues had to be addressed. “Bridges are closed, roads are in poor condition. This isn’t conducive to doing business. If water and road conditions don’t improve in the next six months, I’m doubtful we’ll see a major influx of new developments before December."