South Africa

The small South African town set for a R4 billion boom

Bianke Neethling • 4 November 2025

Port Shepstone in KwaZulu-Natal has been selected as the first small town in South Africa where a new harbour will be built.

This initiative will mark the first time in democratic South Africa that a new small harbour will be built, with the project focused on neglected coastal towns across the country.

On Friday, 31 October, Public Works and Infrastructure Deputy Minister Sihle Zikalala announced the launch of the first phase of this programme.

Calling it a “watershed moment” for the country, Zikalala explained that all of South Africa’s existing harbours were built before 1994, with many located in the Western Cape.

The Centre for Risk Analysis recently revealed that two of South Africa’s smallest ports, Saldanha Bay and Richards Bay, handle over 80% of the country’s cargo.

In contrast, the country’s two biggest ports, Cape Town and Durban, only move 8.3% of the total cargo handled at local ports.

This shows the important role South Africa’s smaller ports play in the local economy, with Zikalala’s department looking to expand this role to other towns across the country.

The deputy minister handed over the Spatial Economic Development Frameworks (SEDFs) on 31 October.

These frameworks designate areas and sites for expanding the country’s port infrastructure investment, signalling a turning point for inclusive and sustainable economic development for coastal communities.

The framework recommends that the first new small harbour should be constructed in Port Shepstone in KwaZulu-Natal.

Two other sites identified to have an economic impact are in Port Edward and Hibberdene, both of which are also located in KwaZulu-Natal.

The Public Works and Infrastructure Department has also already submitted the SEDF for Port St. Johns in the Eastern Cape, with Port Nolloth in the Northern Cape set to receive its SEDF next.

The Port Shepstone harbour site is located less than 1 km southeast of the town’s central business district and the Oribi Plaza shopping centre, placing it at the heart of local commerce and transport networks.

Port Shepstone

Public Works and Infrastructure Deputy Minister Sihle Zikalala (right)

Port Shepstone is situated near the largest river on KwaZulu-Natal’s South Coast, the Mzimkhulu River, and halfway between Hibberdene and Margate.

The town was founded in 1867 after marble was discovered near the mouth of the river. It was named after Sir Theophilus Shepstone, a member of the Natal government in the 1880s.

Today, it serves as the South Coast’s main economic node, with a diverse economy that includes manufacturing, commerce, service, hospitality, mining and service companies.

Being the only small industrial town in that part of the South Coast, Port Shepstone is also known as a tourist hub, surrounded by coastal resorts.

Zikalala explained that the addition of a port in the town is set to significantly boost its economic output. He said the economic impact during construction will add approximately R4.41 billion in added business sales.

In addition, the project is expected to deliver around R1.85 billion in added GDP and around 5,808 jobs for KwaZulu-Natal’s economy.

The development of a harbour at Port Shepstone will follow a three-stage framework –

Pre-implementation – Feasibility study
Planning and concept stage
Design and construction stage

“This phase-one launch signals a turning point for the people of Ugu and Port Shepstone, underscoring government commitments to job creation, regional economic development, and inclusive access to maritime infrastructure,” Zikalala said.

He added that this initiative aligns with national priorities to redress past inequities through tangible investment in infrastructure in neglected towns and cities.

“It complements broader coastal development efforts, including the Smart City Development and demonstrates a sustained commitment to inclusive growth and sustainable coastal economies,” he said.