Revitalising Newcastle’s industrial sector: Challenges and prospective developments

Revitalising Newcastle's industrial sector: Challenges and prospective developments

Newcastle’s Industrial Area is a crucial component of the town’s economy, fostering much-needed job creation and development within the town’s borders. However, the Industrial Area is not without its challenges. Yet there appears to be some promising developments heading to the area.

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As reported by Newcastillian News in March 2024, the Newcastle Municipality disclosed that the local Industrial Area was experiencing difficulties.

Economic data revealed that the downward spiral of South Africa’s industrial economy was significantly impacted by the 2008 global recession, which resulted in over a million job losses throughout the country. These job losses led to shrinking revenues for the industrial economy due to a decrease in demand, as a result of the diminished purchasing power from key customers.

Additionally, with the Textile and Clothing Industry forming a major part of the Newcastle Industrial Area, the Municipality noted a 14.6% decline in this sector across the country.

To read more about the Newcastle Municipality’s Industrial Area, click here.

Despite the challenges faced within the local industrial area, significant developments are on the horizon, poised to impact both Newcastle and Riverside Industrial as a whole.

This includes a new leather and textile Special Economic Zone (SEZ) which will be part of a newly established Newcastle and Ladysmith corridor, with an estimated investment of R600 million.

The KwaZulu-Natal Provincial Government noted in March 2024 that the proposed SEZs were anticipated to generate 4,500 job opportunities, complementing existing SEZs like Dube Trade Port and Richards Bay Industrial Development Zone (RBIDZ).

To read more, click here.

Moreover, the upcoming Madadeni Clothing and Textile Hub, which had its groundbreaking ceremony in October 2023, aims to revitalise the clothing and textile sector, transforming it into a thriving hub for production. At the time, the KZN Department of Economic Development, Tourism, and Environmental Affairs (EDTEA) stated that this project was part of efforts to rebuild the economy and create jobs, while gradually realising its long-held vision of establishing a Clothing and Textile Industrial Hub in the Amajuba District Municipality.

Situated in Madadeni on a 10.7-hectare piece of land along Yellow Street, Ithala Industrial Estate, this R46 million strategic asset is expected to generate approximately 4,500 jobs upon its completion.

The corridor is set to connect Newcastle with Ladysmith, Mooi River, Pietermaritzburg, Hammersdale, Durban, Dube Trade Port, Isithebe, and finally, Richards Bay Industrial Development Zone (RBIDZ).

To read more, click here.

Furthermore, during the Newcastle Municipality’s Roadshows for its Integrated Development Plan in May 2024, it was noted that Phase 1 of the Madadeni project was scheduled to be completed by August 2024.

To read more, click here.

With significant emphasis on the local industrial area, MEC for the KZN EDTEA, Rev. Musa Zondi, travelled to Newcastle on Friday, 5 July 2024. His visit aimed to evaluate the progress and impact of ongoing industrial projects, ensuring they align with strategic objectives of economic revitalisation and sustainable development.

According to the KZN EDTEA, by engaging directly with site managers, business leaders, and local stakeholders, MEC Zondi hoped to gain firsthand insights into these industrial zones.

“This visit underscores the provincial government’s commitment to fostering economic growth and supporting industrial development,” explained the KZN EDTEA.

The agenda for the day included site tours of major industrial hubs, discussions on current economic challenges and opportunities, and evaluations of ongoing development projects.

During MEC Zondi’s oversight visit to industrial hubs and estate sites in the Amajuba district, the activities of the second day commenced with a thorough briefing. During this session, MEC Zondi assured local leadership of the department’s commitment to collaborating with them to address the various challenges that have been impeding the optimal operation of local industries.

Following the briefing, MEC Zondi proceeded to the Amajuba chemicals and cleaning detergents park. After this, he then proceeded to monitor the progress of the construction of the Madadeni Industrial Economic Hub Phase 1.

With the Department and MEC Rev. Zondi ensuring that the local industrial sector and the developmental projects run smoothly, what are your thoughts on the above?

Share your views in the comment section below.

Comments 1

  1. Werner says:

    Riverside Industrial smells like a sewer with water spilling into the streets. Rubbish is all over the streets and sidewalks. Does the anybody care that the Industrial area is falling apart?

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