THE 2025/26 provincial budget is unapologetically pro-growth, pro-jobs, and pro-transformation, KwaZulu-Natal MEC for Economic Development, Tourism, and Environmental Affairs (EDTEA), Reverend Musa Zondi, told business leaders in a post-budget speech at a business breakfast held on 25 April.
Held at FNB’s in uMhlanga facilty, Rev Zondi said the event was more than just a conversation; it was a space for accountability, collaboration, and alignment.
“We are investing in catalytic projects that shift the dial: energy, industrialisation, township economy support, cannabis commercialisation, green economy, tourism infrastructure, and film,” Rev Zondi said.
The MEC emphasised the critical role of continuous collaboration between the business community and government in driving economic growth and shaping the province’s future.
MEC Zondi also announced that EDTEA has launched the KZN Umnotho Fund, a restructured, repositioned and renamed iteration of the Operation Vula Fund. He said it is a bold reimagining of inclusive enterprise funding, with an allocation of R100 million for this financial year.
The meeting also provided a platform to discuss opportunities for economic growth in KwaZulu-Natal, challenges hindering investment in the province, and efforts to strengthen collaboration between government and the private sector. “We are not blind to these problems, and we are not standing still. We are working with law enforcement, local government, and national departments to tackle these bottlenecks. And we are grateful for your insights, which make our interventions sharper, faster, and more effective,” he assured business.
He also reiterated EDTEA’s commitment to championing the “buy local” agenda and advocating for inclusivity across all sectors. MEC Zondi further said that the KwaZulu-Natal Investment Conference 2025 will take place on 22-23 October at the Durban ICC. “This will be our flagship platform to track progress on the 2024 pledges, unveil new investment-ready projects, and showcase the best of what KwaZulu-Natal has to offer – from energy and logistics to agro-processing, tourism, and the creative economy,” he said.
Among the guests at the event, hosted by Trade and Investment KZN and FNB, were the KwaZulu-Natal Provincial Commissioner, Lieutenant-General Nhlanhla Mkhwanazi, members of the diplomatic corps, and captains of industry from various parts of the province.
KZN Budget Speech
Rev Zondi delivered the budget policy speech for 2025/6 to the KZN Provincial Legislature on 24 April 2025. There was a focus on developing regions outside the major metros.
Among other initiatives mentioned, positioning Richards Bay as South Africa’s Energy Hub was a highlight.
Rev Zondi said, “…We are doing everything in our power to accelerate and consolidate its development. With peak demand already exceeding 6,700 MW, the need for local generation and alternative sources of energy is urgent and well-established.
“To advance this, the Department, in partnership with the Richards Bay Industrial Development Zone, will, this year, host the KZN Energy Indaba. This Department-led initiative will bring together energy stakeholders to accelerate KwaZulu-Natal’s leadership in the national transition.
“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 with clean fuels, hydrogen, and battery storage, marking a national-scale anchor for the uThukela District.
“It is impossible to speak about industrial renewal without mentioning 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,” Rev Zondi said.
The MEC said the provincial government stands ready to partner in the revitalisation of Amsa, ensuring that infrastructure, energy, and logistical challenges are addressed.
He said EDTEA is also working towards revitalising the former Karbochem site into a modern industrial park, with warehousing, liquid storage, labs, and logistics infrastructure – creating new energy and manufacturing opportunities for the northern part of the province.
Over three trillion rand
MEC Zondi tabled a budget of R3.610 billion for the 2025/26 financial year. Of this, 66%, or R2.397 billion, is allocated to the province’s ten public entities, which he said “are not just administrative extensions, they are delivery arms of economic development in this province. They give form to our policies, scale to our interventions, and continuity to our long-term transformative and economic development agenda.
“Each one plays a specific and strategic role,” he said, describing each as follows:
- Dube TradePort Corporation (DTPC) supports our aerotropolis strategy, automotive and agro-logistics investments.
- Ezemvelo KZN Wildlife manages our conservation estate and drives community-linked biodiversity initiatives.
- KwaZulu-Natal Economic Regulatory Authority (KZNERA), simplifies and streamlines oversight in the liquor, betting, and gambling sectors.
- KZN Tourism and Film Authority (KZNTAFA), focuses on tourism development, markets our province and unlocks the potential of the film and creative economy.
- KZN Sharks Board continues its dual mandate of marine safety and ocean economy education.
- Trade and Investment KwaZulu-Natal (TIKZN) is our lead agency for inward investment promotion and export growth.
- Ithala Development Finance Corporation (IDFC) remains our strategic pillar for the development of commercial and industrial parks, to ensure financial inclusion and township enterprise funding.
- KZN Growth Fund packages blended finance for catalytic infrastructure projects.
- Richards Bay Industrial Development Zone (RBIDZ) anchors industrialisation in the northern corridor; and
- The Moses Kotane Research Institute (MKRI) provides policy intelligence, economic research, and innovation support.
