Minister Dean Macpherson on hand over of management of 15 South Coast DPWI properties

The Minister of Public Works & Infrastructure, Dean Macpherson, on Monday morning formally handed over the management of 15 coastal properties in Ray Nkonyeni Local Municipality to KwaZulu-Natal Member of the Executive Council (MEC) for Public Works & Infrastructure, Martin Meyer, in order to improve leasing agreements with local businesses.

Despite an existing 20-year agreement signed between the Department and the Municipality in 2016 to manage these properties along the Admiralty Reserves between Hibberdene and Port Edward, the municipality failed to administer leases in a consistent and transparent manner. After a series of short-term extensions between 2021 and 2023, businesses were left on precarious month-to-month leases. The Municipality later claimed it owned several of the properties and proceeded to advertise them for tender without resolving ownership disputes or responding to departmental correspondence. In response to complaints from affected tenants, the Department formally invoked its right to terminate the 2016 agreement which ended on 3 August 2025 and instructed the Municipality to cease advertising the properties, citing concerns over unfair treatment and procedural irregularities.

By transferring the management of these properties to the provincial department, a more stable and transparent leasing framework will now be established. This will allow for long-term leases that give business owners the confidence to invest, improve facilities, and create sustainable jobs. With the handover now complete, the KwaZulu-Natal Department of Public Works & Infrastructure will assume responsibility for administration, paving the way for new investment and renewed economic activity along the South Coast.

Minister Macpherson said the handover of these properties is in line with his commitment to use public assets for the public good – ensuring that state land does not lie idle, but instead adds value to the communities where it is located and supports economic growth. The handover follows similar transfers of unutilised Department of Public Works & Infrastructure properties in Nkandla and uMngeni Local Municipalities earlier this year.

“When I was informed by the Federated Hospitality Association of Southern Africa (Fedhasa) last year about the challenges faced by businesses operating on these properties, I immediately began working with officials to find a solution that would safeguard existing jobs while encouraging further investment in these communities. For too long, the state has unintentionally been a barrier to private sector investment and the jobs that come with it. Through initiatives like today’s handover of management responsibilities, we are removing those barriers and ensuring that businesses have the security of tenure they need to invest confidently and operate successfully,” Minister Macpherson said.

“I look forward to the provincial department concluding new lease agreements with businesses as soon as possible so that new investment can take place and more jobs can be created. As the national Department of Public Works & Infrastructure, we remain committed to partnering with the private sector to improve the lives of people in communities such as those within the Ray Nkonyeni Local Municipality.”

MEC Meyer said today's event was the result of a cry for help after the owner of one of the once prominent South Coast establishments which went under when ravaged by coastal storms and floods said the inability to secure ongoing leases made it difficult to commit to repairs. As a result, the owner had to let go of any hopes of running the establishment as well as his staff who had been with him since its inception.

“I want to make it very clear – this is all about jobs. Ray Nkonyeni Municipality sits with 37% unemployment. Tourism brings in 16.9% in general value to the economy of Ugu district. As KZN Public Works and Infrastructure we are very excited to partner with our national counterpart to achieve this and we ask the members of the community, councillors, FEDHASA and other stakeholders to walk this path with us as it is new, but I am more encouraged by the prospects of tourism and the number of people who will come from other provinces to enjoy the South Coast as they witness it being restored to its former glory,” MEC Meyer said.

Enquiries:
Ministry of DPWI Spokesperson
James de Villiers
Cell: 082 766 0276

MEC Meyer Spokesperson
Steve Bhengu
Cell: 083 681 7928

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