South Africa’s smart waterfront project hits a wall

As the world grows more uncertain, clarity matters more than ever. BNC#8 brings together some of the smartest and most experienced minds to help you cut through the noise and navigate the turbulence with greater confidence. Tickets are selling out fast, with only 40 left. Don’t waste time, book your place at BNC#8 by clicking here or on the image below..Key topics:Durban Point Waterfront has stalled despite ambitious smart-city plans.Legal, infrastructure and environmental issues slowed investment.Sewerage crisis and crime deter investors from luxury development..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Myles Illidge.The Durban Point Waterfront, initially envisaged to be a high-tech waterfront comparable to those in Dubai and Singapore, got off to a good start. However, the project has stagnated.Launched in 2017, the project aimed to transform the city’s coastal skyline by constructing skyscrapers and high-rise developments.The 750,000-square-metre development was set to comprise six precincts, each with its own unique attributes.Precinct One will primarily comprise residential and office space, with some retailers. Precinct Two is home to uShaka Marine World, and is envisaged to feature high-end stores, hotels, and condominiums.Precinct Three consists of historic buildings with limited redevelopment options due to their heritage status.Precinct Four offers sea views, and it is envisaged to comprise primarily residential and commercial spaces, while Precinct Five will feature high-rise residential buildings, restaurants, and bars.Precinct Five will also provide immediate access to the beach. Precinct Six is dedicated to a public transportation node, high-tech commerce, and parking facilities.Other plans for the development included extending the Durban beachfront promenade, which was completed in 2019, and building a cruise terminal in Precinct Three, which was launched in 2023.However, the developments appear to have stalled since their completion, with large portions of land still vacant across various precincts.Precinct Three is home to several derelict buildings that have remained in such a state for many years..Read more:.Lesotho Highlands Water Project faces fresh opposition as communities demand accountability.While this precinct is dedicated to heritage, some of these buildings have been crumbling for decades, with very little structure left.The Durban Point Waterfront Development was undertaken by the Durban Point Development Company, which is a partnership between Malaysia’s UEM Sunrise and the eThekwini Municipality.The development, once completed, would have cost an estimated R35 billion. When construction began in 2017, it was estimated to be a 10- to 15-year project.However, some aspects of the development that were planned to be finished in 2022 have not yet been completed..A perfect stormThe Durban Point Waterfront development has stalled for several reasons. It became trapped in a perfect storm of legal, environmental, and infrastructure challenges.The area has seen a slew of beach closures in recent years due to high levels of E. coli in the water. This is due to sewerage flowing directly into the ocean.The problem was caused by years of neglect regarding the city’s sewerage infrastructure and exacerbated by the 2022 floods.In December 2025, the High Court ordered the eThekwini Municipality to address the disaster after legal action by the Democratic Alliance and ActionSA.The municipality argued in court that fixing the sewerage disaster would cost more than R6 billion, leaving little capital to subsidise the high-tech infrastructure it promised.This made it difficult to attract investors for the Durban Point Waterfront development. Trying to sell a “luxury waterfront” is virtually impossible when the primary attraction is contaminated with sewerage.Another problem that slowed development is the high crime rate in the Durban CBD, through which visitors must drive to reach the beachfront.The project has also faced allegations of corruption and tenderpreneroject, which further contributed to delays.The municipality also faced years of litigation after the Durban Point Waterfront project was seen to be privatising the beach and blocking public access.It reached a settlement in 2017 to ensure public access to the beachfront, which enabled it to proceed with the promenade extension.Images of the area designated to be the Durban Point Waterfront smart city development.This article was first published by MyBroadband and is republished with permission.

South Africa’s smart waterfront project hits a wall

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