KZN South Coast operators get long-awaited lease stability

FEDHASA has welcomed the decision by the national Department of Public Works and Infrastructure to assume custodianship of 15 seafront properties within the KwaZulu-Natal (KZN) South Coast’s Ray Nkonyeni Local Municipality and delegate their management to the KZN Department of Public Works and Infrastructure for the next 20 years.

The move ends the month-to-month lease arrangements that have constrained operators along the KZN South Coast for more than a year – limiting investment, compliance and operational stability.

“The industry simply cannot function on month-to-month leases,” said FEDHASA National Chairperson Brett Tungay. “Without long-term security, operators are unable to obtain liquor licences, secure finance, invest in infrastructure or offer proper employment contracts. Compliance was near impossible.”

FEDHASA first raised the issue in early 2024 and approached the Department of Cooperative Governance and Traditional Affairs to intervene, requesting longer leases or a transparent tender process. After limited progress, the matter was escalated to the KZN MEC for Public Works and Infrastructure, Martin Meyer, with support from Minister of Public Works and Infrastructure Dean Macpherson. Both recognised the impact on tourism, jobs and local investment.

On November 10, Macpherson’s department formally took control of the properties and issued a 20-year management mandate to the KZN Department of Public Works and Infrastructure. The shift is expected to strengthen investor confidence, enable rehabilitation of the sites and unlock tourism growth along the South Coast.