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ANC enters row over Dubai firm's $4bn project

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Friday, 07 November 2008
PROJECT CONTROVERSY: An aerial view of the development site being proposed by Ruwaad in South Africa. (Supplied)

Controversy continues to surround a Dubai company's $4 billion plan to build South Africa's biggest themed entertainment and mixed-use destination development in Kwazulu-Natal.

Ruwaad Holdings unveiled Amazulu World, a project 10 times the size of the famous Sun City, on the north coast of Durban at a ceremony in the emirate last month.

Billed as the biggest development of its kind anywhere in the African continent, the company flew in the local Zulu King Goodwill Zwelithini and the Premier of KwaZulu-Natal, Sibusiso Ndebele, to endorse the mega project and a memorandum of understanding was signed during the visit.

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But since the ceremony, the project has been dogged by a series of political rows and a rival project put forward by rival Dubai firm Sport Cities International (SCI) has been backed by local people in Macambini, where the development is due to take place.

In the latest twist, Senzo Mchunu, provincial secretary of the ruling African National Congress party, has announced that he has reservations about the proposals, according to a report by the local Sowetan newspaper.

He told the paper he shared the local community's concerns that the project could result in thousands of people being "forced off their land" and called for more information about the impact of the construction work to be announced.

Last month, Ruwaad CEO Hayan Merchant told Arabian Business he was confident that the development - planned to be built in phases over 25 years - would "progress as planned".

His optimism seemed to be well-placed after local business leaders last week threw their weight behind the project.

The powerful KwaZulu-Natal Growth Coalition and the province's three main business chambers - Durban, Zululand and Pietermaritzburg - voiced their support.

John Barton, co-chairman of the growth coalition, called the Ruwaad scheme "an opportunity KZN cannot afford to pass up".

Arabian Business contacted Ruwaad for a comment on the latest development to the saga but no-one responded.

In a previous statement relating to the opposition of local community leaders to the project, CEO Hayan Merchant said: "We would like to categorically announce to all stakeholders that Amazulu World is still proceeding as planned and has the blessings of all arms of the government including the local, provincial and national government.

"Ruwaad are moving swiftly to complete the social and community participation procedures for the project, in order to obtain the approvals required from the South African government, necessary to begin the project’s construction. The project is scheduled to be built in multiple phases over a period of 25 years.

"We remain committed to developing this project which we believe will have huge benefits for the local community, the Kwazulu-Natal province and South Africa."

Initial studies indicate that Amazulu World will create more than 200,000 new jobs, and will increase tourism to the region by almost 40 percent through attracting millions of tourists.

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