Is KwaZulu-Natal poised for transformative growth in the energy and industrialisation sectors, with Newcastle, Colenso, and Richards Bay playing pivotal roles in this evolution? This question arises following the Budget Speech for the 2025/2026 financial year, delivered by Reverend Zondi, MEC for the Department of Economic Development, Tourism and Environmental Affairs.
Delivering his budget speech under the theme Building Resilience for Sustained Inclusive Growth and Economic Transformation, MEC Zondi underscored that the 2024 KwaZulu-Natal Investment Conference secured R85.2 billion in private-sector investment commitments, poised to generate over 82,000 permanent jobs.
“As Richards Bay has been designated to be South Africa’s Energy Hub – a move that positions KwaZulu-Natal at the centre of the country’s energy future, we are doing everything in our power to accelerate and consolidate its development. With peak demand already exceeding 6,700MW, the need for local generation and alternative sources of energy is urgent and well-established,” said MEC Zondi.
To advance this ambition, the Department, in collaboration with the Richards Bay Industrial Development Zone, will host the KZN Energy Indaba this year. This Department-led initiative, according to the government entitiy, will convene energy stakeholders to cement KwaZulu-Natal’s leadership in the national energy transition.
Furthermore, MEC Zondi highlighted the Colenso Power Project, a privately funded yet catalytic investment facilitated by the Department. Valued at R9.78 billion, this project features a hybrid base-load power facility integrating clean fuels, hydrogen, and battery storage, establishing a national-scale anchor for the uThukela District.
Additionally, while focusing on industrialisation, MEC Zondi stressed the impossibility of discussing industrial renewal without referencing ArcelorMittal South Africa (AMSA).
“We are supporting the revitalisation of AMSA, which remains a key anchor in the province’s steel manufacturing value chain and a catalyst for supplier development and industrial jobs,” said the MEC.
For decades, AMSA has been a cornerstone of Newcastle’s economy, sustaining jobs, small and medium enterprises, and broader industrial activity. “It is in this context that we welcome the recent announcement by the Minister of Trade, Industry and Competition, the Honourable Parks Tau, confirming that national government is developing a support plan to stabilise and reposition AMSA’s Newcastle operations,” explained Zondi.
According to the MEC, the provincial government is prepared to collaborate in this endeavour, addressing infrastructure, energy, and logistical challenges.
“Our goal is to see AMSA re-emerge as a flagship steel and beneficiation hub, contributing to local manufacturing, export competitiveness, and the broader economic recovery of the northern region. This is not only about protecting existing jobs, important as this is, it is about restoring Newcastle’s rightful place in our industrial future,” elaborated the MEC.
Additionally, in Newcastle, the MEC noted that his department is working to transform the former Karbochem site into a modern industrial park, featuring warehousing, liquid storage, laboratories, and logistics infrastructure—creating new energy and manufacturing opportunities for the northern region.
“KwaZulu-Natal remains a national leader in automotive manufacturing, anchored by major investors such as Toyota South Africa, based in Prospecton. Toyota continues to drive innovation and resilience in our manufacturing base, including its investment in hybrid vehicle production, localisation of components manufacturing, and supplier development. Through partnerships with the private sector and support from our Department, we are working to strengthen the full automotive value chain, from logistics to skills development and black industrialist participation,” he noted.
Furthermore, KwaZulu-Natal is forging a path toward growth in its energy and industrial sectors, with Newcastle playing a significant but not central role alongside other key regions like Richards Bay and Colenso. The province’s efforts, including Richards Bay’s designation as South Africa’s Energy Hub and the Colenso Power Project’s focus on sustainable energy, are set to enhance economic stability.
In Newcastle, the transformation of the former Karbochem site into a modern industrial park with warehousing and logistics infrastructure, combined with the revitalisation of ArcelorMittal South Africa, will create jobs and stimulate economic activity.
These initiatives will directly benefit Newcastle’s communities by providing employment opportunities and supporting small businesses, contributing to a stronger local economy.
The province’s automotive sector, anchored by Toyota South Africa, further strengthens this momentum by promoting skills development and inclusive partnerships that empower local residents, including black industrialists. The upcoming KZN Energy Indaba will foster collaboration to ensure these projects align with national goals, benefiting KwaZulu-Natal as a whole.
As per the goverment entity, by creating thousands of jobs and enhancing infrastructure, these developments will improve living standards across communities and position the province as a leader in South Africa’s industrial and energy landscape, delivering long-term economic and social benefits.
What are your thoughts on the above? Share your views in the comment section below.
Be sure to read the following article – Ramaphosa Must Withdraw New Racial Laws or Face Court, States Solidarity
Comments 6
Ulundi should be partnerships with strong Chinese manufacturers to bring resources and improve economy and youth skills development
To whom it may concern. I Vidhir Singh hav been in the LPG Industry since 2002. I have been exposed to many walks of life regarding the LPG Industry from a sales level to a technical level. I have the skills and knowledge, experience of creating a brand new label within the LPG Industry, this opportunity will create many job opportunities in the energy sector as LPG is the next best alternative. If someone from higher authority from the energy sector can hear me out, we can create a new platform for all.
Great opportunity that can be taken to a higher level.
The article seems to promote development in Newcastle. But no mention is made of all the coal mine applications, with mines proposed right next to Newcastle, which could well kill Newcastle with all the pollution etc.
Dear Leadership
Please insight about Ingagane Power Station…
Good Day Mr Singh
The RBIDZ is always looking for new industrial processes and business to fund from startup. If you can prove your concept not only on paper, patent it then go to them (they are in Richard’s Bay – Richards Bay Industrial Development Zone). They will build you a processing plant and give you everything you need. I highly recommend them. Many startups I know have had success due to their support. Also loop in the IDC (Industrial Development Corporation) and the South African Research Council