INLSA
Kenneth Wang, a director at the Shanghai Pengxin Group, left, with Economic Development and Tourism MEC Mike Mabuyakhulu and Elias Khumalo, head of BEK Holdings, during the signing of a foreign direct investment agreement.
Dube TradePort is set to be the main KwaZulu-Natal beneficiary of new multibillion-rand Chinese and Indian deals to come out of the Brics summit hosted in Durban last week.
Economic Development and Tourism MEC Michael Mabuyakhulu said the agreements signed with the Shanghai Pengxin Group and Indian-based Action Group highlighted the development potential of Dube TradePort and the planned “aerotropolis” around King Shaka International Airport.
“Chinese and Indian investors in particular are eyeing further major investments into KZN. The attraction of Dube TradePort is a vote of confidence in the project, which is still in its early development phase,” he said on the sidelines of the summit of the Brics economic bloc of emerging nations (Brazil, Russia, India, China and South Africa).
Speaking at the announcement of the Shanghai Pengxin Group deal, Mabuyakhulu said their investment plan of between $150 million and $200m (R1.4bn and R1.8bn) in KZN would unlock opportunities in the hotel development, infrastructure and agri-processing sectors.
“We welcome… the fact that they are working with local partners, BEK Holdings. They are looking at multiple projects as part of their investment and plans will now need to be finalised. Once this is finalised they have said they were looking for further investments in the agriculture sector and are in talks with the KZN Agriculture Department on possible agri-processing projects.”
The Shanghai Pengxin Group said it planned to invest $300m in South Africa and about half of this had been earmarked for KZN as part of a joint venture with black economic empowerment company BEK Holdings, led by Elias Khumalo.
Shanghai Pengxin chairman Jiang Zhaobai said there were great business opportunities in South Africa, especially in the property, infrastructure, mining and agriculture sectors.
At 49, Jiang is on the Forbes list as the 82nd richest person in China with a $1.2bn fortune. His company eyeing other potential investments in KZN’s agriculture sector is of interest considering the increasing food demands of China. Jiang’s company already has business interests in South Africa. With BEK Holdings, it owns China African Precious Metals, which has bought an old Orkney gold mine in North West that it plans to bring back into operation.
Khumalo said Shanghai Pengxin Group would split the $300m investment between KZN projects and the Orkney mine. They were awaiting Treasury approval of the foreign direct investment by the Chinese group into South Africa.
Khumalo said the $150m earmarked for KZN was for a hotel project and other infrastructure investments. They had considered the Durban Point Waterfront for a five-star hotel, but the Dube City precinct at Dube TradePort was preferred.
“We have seen the plans by Dube TradePort and they are very exciting. They have also already developed plans and a business case for a major hotel and it makes sense for us to come in with much of the foundation work already done. We are looking to bring in the luxury Bayan Tree Hotels and Resorts brand for Shanghai Pengxin Group’s first hotel project in South Africa,” he said.
“Bayan Tree is a strong emerging hotel operator based in Singapore and has a number of new hotels across China and other parts of Asia. Shanghai Pengxin Group already has a relationship with Bayan Tree operating their property in Shanghai,” said Khumalo.
In the other major deal, Indian conglomerate Action Group signed an agreement with Dube TradePort to develop a “mega industrial integrated township” in the planned “aerotropolis”.
Action Group would invest R2bn in a 240 hectare site. – The Mercury
