Durban Chamber of Commerce Chair Stresses Importance of Business-Government Unity to Strengthen Trust
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Durban Chamber of Commerce Chair Stresses Importance of Business-Government Unity to Strengthen Trust

On the night of Wednesday in the playTSOGO Globe at Suncoast, a meeting took place—a rare event for Durban—bringing together the President of the Republic, the Premier, the Executive Mayor, and corporate leaders whose financial reports depend on the city's trade. Small and medium-sized enterprise (SME) owners and informal traders, as well as leaders from other chambers in KwaZulu-Natal, were also present in this room.

These participants gathered at the invitation of Palese Phili. She stated that the ability to gather people is not bought or inherited; it is earned through usefulness to those who owe you nothing. Phili's goal was to unite business and government with the President's participation.

President Cyril Ramaphosa warmly spoke about Durban, noting that when Durban fails, the entire country suffers. He thanked the Chamber of Commerce, the oldest and largest metropolitan chamber on the continent, for guiding the business response to the unrest of July 2021 and the floods of April 2022.

"Not Again"

Premier Themba Ntlali addressed the deep anxiety in the room. He recalled the violent anti-immigrant protests on October 8th in central Durban, during which fourteen vehicles were burned, trade was halted, and acts of vandalism and looting occurred over almost two days. For many present, this brought back the tragedy of July 2021, which claimed more than 350 lives.

Ntlali declared: "Durban will never burn under my leadership. Never again." He pledged to protect every factory, shop, port, and livelihood, stating that burning Durban means depriving millions of people of food. He repeated this oath in isiZulu, adding that those responsible for crimes and economic destabilization would not go unpunished. He requested the President deploy the army, and 510 soldiers under Operation Prosperity will now work alongside the police in the province until November 30th.

Entrepreneurs demonstrated to the Premier that investor confidence depends on government safety, predictability, and responsiveness. He noted that the Chamber and the province have partnered to restore this trust, which was tested on October 8th, and thanked the business for its willingness to help.

Numbers and Their Meaning

Ramaphosa presented evidence of positive momentum. The eThekwini city contributes the majority of the record R124.5 billion in investment commitments secured at the KwaZulu-Natal Investment Conference. Employment in the metro stands at 1.29 million, and eThekwini has the lowest unemployment rate among the eight metros. However, he clarified that these are only commitments, not completed projects.

The Port of Durban recorded the largest increase in the World Bank and S&P Global Container Port Performance Index, but still ranks low globally. He acknowledged that progress is real, but the path to the goal remains long.

Palesa Phili informed the audience that the Durban Business Confidence Index has fallen from a record 63.38 in Q4 2025 to 48.82 in Q2 2026, becoming the first indicator below the neutral level of 50 since 2024. She attributed this decline largely to national and international pressure, while Durban remains 39 points above the national index. Phili emphasized that confidence does not replace investment, but it usually precedes it.

Economists argue that business confidence is a prerequisite for foreign investment. However, that night Phili reinterpreted this concept. She stated that confidence is not just a quarterly index, but a leader who tells the President they believe in their city, and then spreads that belief one business at a time. This is the kind of confidence she conveyed in the hall.

Regarding the service sector, 31.5% of respondents in the latest survey cited costs as the worst issue, with environmental management and water following closely. Water supply interruptions forced some businesses to secure their own supplies.

Capital expenditure, such as funds for replacing old pipes and roads, amounts to approximately R6.3 billion from the municipal budget to R75.3 billion, representing about 8.4%. She urged the government to increase this share, stating that Durban needs 'decisive action, not just ongoing discussions.' Her comments on the port generated the most resonance. She described vessels waiting anchored outside the harbour, the days lost by each ship, and the producers and retailers awaiting goods. Phili noted that every delay is paid for by someone who has never seen the vessel, and that business complaints are extremely sharp.

She was equally clear about what is working well. The President's eThekwini task team includes public companies, private companies, and small businesses interacting with each other. She concluded: 'The pain of one is the pain of all.'

What the Government Proposed

The President's response was candid. Ramaphosa admitted that delays in water supply and infrastructure are hindering recovery. Water license processing used to take about three years, but now takes 75 days, and he aims to reduce this period. He advised businesses to approach him if the government fails to keep its promises. Mayor Cyril Shabala stated that investments are substantial, and prospects, including tourism, are bright.

Corporate South Africa in Attendance

Phili also did something rare for the host side: she called for networking. She advised guests to develop their businesses and conduct business with each other, as finding such people in one place will be difficult, so this time must be utilized. This is an act of someone who places the city's interests above their own organizational interests.

Corporate South Africa reciprocated. Toyota and Unilever proudly discussed their investments in KwaZulu-Natal, their plans for expansion there, and their desire to remain loyal to the province and South Africa. Furthermore, Momentum, Sanlam, FNB, and Old Mutual, who usually compete daily, stood together that evening, celebrating the achievements of Durban and the Chamber.

The financial sector derives income from KwaZulu-Natal clients, which imposes a responsibility on it to contribute to regional development. Partnership with the Chamber is a practical way to fulfill this duty for the sector and the small businesses that create jobs in the province. She added that the door is open for institutions that did not attend, and they will be welcomed with open arms, as are the residents of Durban.

Why This Matters for Your Business

The results of the task team were achieved through a structure where the Chamber holds a seat, and the President called this a central element of progress. A company needing more stable water supply, a faster port, safer streets, or expedited permits has a greater chance of being heard through an organized body than acting alone. The cost of staying outside this room is paid for by water tankers, delayed containers, and closed shops.

The Chamber has existed for 170 years. Its CEO demonstrated the ability to bring the President, Premier, Mayor, and other provincial chambers to the same table, and then inform them of the problems. This room will not be assembled tomorrow. The invitation to join it is open now.

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How urban environment improvement zones in Durban contribute to attracting major investments
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How urban environment improvement zones in Durban contribute to attracting major investments

Urban Improvement Districts (UIDs) are playing an increasingly significant role in Durban's efforts to attract investment by enhancing the safety, cleanliness, and overall appeal of key commercial and tourist areas.

These non-profit organizations are established by property owners in specific zones and provide supplementary services that complement municipal offerings. Owners contribute additional funds through a special assessment regime, enabling UIDs to provide services such as security patrols, cleaning, and maintenance.

Once the necessary level of support from property owners is secured and relevant municipal permits are obtained, a zone can be officially established. These initiatives aim to create cleaner, greener, and safer public spaces, which helps build the trust required to attract long-term private investment.

R1 billion amusement park investment signals growing confidence

One of the latest examples of investment in Durban is the planned R980 million amusement park on the former Funworld site along the Golden Mile. The eThekwini Municipality confirmed that the development finance institution has approved funding for the project's development phase. Design work is complete, technical planning is underway, and remaining legislative procedures are expected to be finalized by the end of the first quarter of 2027, after which construction will commence.

This project is expected to create around 1400 jobs and will include rides, digital entertainment zones, retail shops, and an upgraded amphitheater. This development represents substantial investment in the Durban waterfront, with local entrepreneurs highlighting the role of UIDs in creating conditions favorable for such projects.

UIDs strengthen safety and maintain public spaces

The impact of UIDs is evident in several existing commercial and tourist areas. On Florida Road, the UID conducts 24-hour vehicle patrols, additional weekend foot patrols, and maintains a dedicated cleaning team. These services help sustain an environment that supports restaurants, businesses, and visitors.

In the uMhlanga area, the UID maintains a constant security presence, including a control room and waterfront patrols. It also collaborates closely with the Metro Police and the South African Police Service (SAPS). The goal is to maintain safe, clean, and attractive public places that encourage the retention of existing businesses in the area and attract new investment.

The eThekwini Municipality has also publicly commended the Glenwood UID for its contribution to safety and service provision through collaboration with the city. Similar initiatives have been created or are in development in other suburbs and commercial nodes.

Foot traffic on the Golden Mile demonstrates tourism potential

Durban's Golden Mile recorded 17.45 million pedestrian movements in 2025, a 20% increase compared to the previous year. While these figures highlight the waterfront's tourism potential, sustained investment will partly depend on whether visitors feel sufficiently safe to spend time and money in the area and return regularly.

For developers of large tourism and entertainment projects, consistent safety, cleanliness, and maintenance are crucial factors. UIDs help address these issues by providing supplementary services that augment municipal operations. Although these initiatives cannot independently resolve major infrastructure problems or broader service delivery challenges, the municipality states they create employment opportunities, support local service providers, increase property values, and attract investment. The reliability of these services can help strengthen the business case for long-term investment.

Recent data from Durban's CBD indicates that coordinated safety initiatives can contribute to improving the security situation. Ensure Ubuntu, a private security and cleaning service provider working with the municipality, reported a 28% reduction in visible serious crime in the CBD during its first 14 months of operation. The organization attributed this decrease to 24-hour patrols and faster response times. It also reported that its staff arrested 290 suspects in cooperation with the Metro Police and SAPS.

A municipal economic development official stated that this partnership helps create a safer and more attractive environment for investment, trade, and small business growth. The Central Durban UID, which covers the South Beach area along the waterfront, previously collaborated with a private security firm and the Metro Police through CCTV monitoring, control rooms, and vehicle patrols. It also coordinates with other UIDs via shared messaging platforms, allowing zones to exchange information and respond to security issues more effectively. This collaboration provides an added layer of security that can be beneficial for large tourism developments and surrounding businesses.

Public-private partnerships are key to sustainable investment

The long-term success of Durban's UIDs will depend on their ability to maintain safety, cleanliness, and other services while operating in parallel with the municipality. For investors, the stable provision of services and well-maintained public spaces can help mitigate operational risks and enhance the attractiveness of commercial and tourist venues.

The planned R980 million amusement park represents a significant opportunity for the waterfront, but its success will also depend on the broader environment in which it operates. By addressing daily issues such as crime, litter, and the deterioration of public spaces, Durban's UIDs help create conditions that support business activity and encourage investment. While the amusement park cannot be directly attributed to UID work, these initiatives are part of a wider effort to revitalize Durban and bolster confidence in its economic future.

This is a major sign of confidence in the Durban waterfront, with local entrepreneurs noting that the growing number of UIDs has played a real role in making such commitments possible. Results are visible in places like Florida Road, where the UID provides 24-hour vehicle patrols, additional foot patrols, and a dedicated cleaning team, sustaining a vibrant and welcoming atmosphere for restaurants and visitors. In uMhlanga, the UID maintains a constant security presence, including a control room and waterfront patrols, interacting closely with the Metro Police and SAPS. The goal is simple: keep the place safe, clean, and attractive so that existing businesses remain and new ones feel welcome. The Glenwood UID even received public praise from the city for practical partnership in safety and service provision. Similar systems are operating or being launched in other suburbs and commercial hubs. Foot traffic on the Golden Mile reached 17.45 million in 2025, 20% higher than the previous year. However, for long-term investors, the question is whether people will feel safe enough to stay, spend, and return, as investors in the project are betting on foot traffic. This is where UIDs come into play. While they do not solve all problems, such as major infrastructure restoration or solving urban issues alone, the municipality asserts that UIDs create jobs and opportunities for local service providers, increase property values, and attract investment. For investors considering tourism or entertainment projects, this reliability matters.

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