Daily Archives: June 9, 2025

Tourism game-changer on KZN’s North Coast

Set along the scenic North Coast of KwaZulu-Natal, Club Med SA is set to become South Africa’s largest resort development after Sun City.

Once complete, it is expected to serve as a major catalyst for economic growth in the region, drawing international tourists and creating thousands of jobs.

The project is being backed by the Industrial Development Corporation (IDC), the biggest development finance institution in Sub-Saharan Africa. It’s one of the IDC’s largest tourism undertakings to date, adding to its current tourism exposure of about R3 billion.

The Club Med SA development will result in the creation of an economic hub with a high development impact in an underdeveloped node. An estimated 2,000 jobs will be created through the project — with further creation of downstream jobs across the value chain of linked services.

Even French airliner Air France is exploring adding a new route to Durban, thanks to the resort project.

Kagisho Bapela, head of the Services Strategic Business Unit (SBU) at the IDC, said: “The direct impact is 2,000 jobs on construction and permanent employees. A further 1,500 indirect jobs are expected to be created.”

He stressed that the resort’s economic influence extends well beyond direct employment, with a wide range of industries expected to benefit. From food and furniture to linens and other essential amenities, the project will stimulate growth across the entire supply chain.

“If you think about it long-term, there is going to be a marked shift in the KZN economy. We are impressed by the recruitment and training of 110 staff members for kitchen and restaurant roles through the NukaKamma Hospitality School, an NGO dedicated to educating young and unqualified individuals from Ballito townships,” said Bapela.

“The local crime stats for the villages surrounding the construction site are already reflecting a 60% decrease in reported cases compared to this time last year. This tells us that the people are already meaningfully engaged, and the jobs are creating a sense of ownership.”

Construction on Club Med SA began in March 2024. The resort has been designed to achieve Level 4 Green Building Certification incorporating features that improve energy efficiency, air quality, and occupant wellbeing.

Nestled on the shores of the Indian Ocean in Tinley Manor, it includes 345 hotel rooms being built by 17 main contractors with 250 subcontractor packages, and 1,400 personnel onsite daily – 90 offsite project staff.

Key features of the property include a beach club, a resort centre, children’s club and villa suites. It also boasts a 500-seat convention centre, marking Club Med’s entry into the local business tourism market.

And not to be missed will be the accompanying safari lodge in Mpilo Game Reserve — a private Big Five reserve located in northern KwaZulu-Natal that covers more than 8,623ha — offering a magical safari and beach experience suitable for families.

Ken Ogwang, senior dealmaker in the IDC’s Services SBU, said they chose to work with Club Med SA because of its global footprint in the hospitality business.

Club Med, founded in 1950, is a family-centric travel and tourism operator and is believed to have pioneered the all-inclusive holiday experience. It operates 70 resorts in 32 countries including Indonesia, Thailand, Maldives, Seychelles, Mauritius, Turkey, France, Portugal, Italy, Greece and Portugal.

“The other aspect you get from using an international operator is that you get their brand. If someone is sitting in Jamaica or New York, they know what Club Med is in the global tourism landscape,” he said.

The resort site spans two hills with planned access roads. “We are under very tight deadlines with Club Med global for delivery. If you imagine 1,000 foreign guests on opening day, we can’t very well send them packing back to Europe because the resort is not ready,” said Chris du Toit, the resort’s project lead.

Bulk services including roads, a dam, water infrastructure and a permanent electrical supply are soon to be completed.

According to Olivier Perillat-Piratoine, Club Med SA CEO, the construction of the resort is more than halfway complete. “The construction is doing fantastic. The roofing is completely finished for all the buildings, a sign of good progress. We are launching the reservation in October for the opening in July next year.”

He said Club Med would leverage its global presence to attract international visitors. “We are a very powerful brand. We have a large base of loyal international customers who will trust us with their South African holiday. This is tens of thousands of international travellers that will come to us and they will also spend money and venture outside of the resort.” For us it is a brilliant addition to our existing portfolio of destinations.”

Eskom gives positive update as snow and cold grips South Africa

Power utility Eskom is expected to return at least 2,550MW capacity to the grid by evening peak on Monday as South Africa braces for severe winter conditions throughout the country this week.

The power utility said it is making “steady progress” in tapering down maintenance season with the Energy Availability Factor “fluctuating between 61% and 64%” last week.

“While system constraints are occasionally experienced, adequate emergency reserves are in place and are being strategically deployed to support demand during the morning and evening peak periods, particularly as the country prepares for a forecasted cold spell in the coming week.

“We plan to return a total of 2,550MW of generation capacity to service ahead of the evening peak [today] to further stabilise the grid,” the power utility said.

In May Eskom shared its Winter Outlook which covers the period from 1 May 2025 to 31 August 2025, noting that that load shedding would be avoided if unplanned outages remain below 13,000 MW.

If outages reach 15,000 MW, load shedding would be limited to Stage 2.

Eskom revealed that Medupi Unit 4 is in the last phases of recovery following damages sustained in 2021.

“Commissioning activities are currently underway and Grid Code compliance testing is expected to resume in the coming week. The unit is anticipated to return to service within June 2025.

“Diesel usage is expected to decline further as more units return from long-term repairs and maintenance activities are reduced, increasing available generation capacity.

“The Winter Outlook…covering the period ending 31 August 2025, remains valid. It indicates that load shedding will not be necessary if unplanned outages stay below 13 000MW. If outages rise to 15 000MW, loadshedding would be limited to a maximum of 21 days out of 153 days and restricted to Stage 2,” Eskom said.

The power utility has encouraged communities to “avoid illegal connections and energy theft” even as the winter period rolls in.

“These activities often lead to transformer overloads, equipment failures, and in some cases, explosions and extended outages, prompting the need for load reduction to protect the network.

This is the home that comes with a R530k monthly bond over 20 years

A high-end beachfront villa in Plettenberg Bay is up for sale, commanding the attention of ultra-wealthy buyers with a price tag of R52 million – a monthly bond of more than half a million rand (R528K).

The property, positioned on a 1,000-square-metre plot – 800 square metres under roof, sits directly on a secluded stretch of coastline, offering uninterrupted ocean views and direct beach access.

The residence includes five bedrooms—four of which are en-suite on the lower level – and 5.5 bathrooms. The entire upper level is reserved for a master suite featuring a private lounge, steam room, and rooftop terrace.

The home also includes an indoor glass-enclosed pool, a second outdoor pool, and a three-car garage.

Designed with influences from Balinese and Japanese architecture, the house features curved slate roofs, timber accents, and extensive use of imported marble and underfloor heating.

Pocket doors throughout provide fluid transitions between indoor and outdoor spaces.

Additional features include:

-Walk-in cold store and scullery
-Off-grid energy system powered by three Tesla Powerwall 2 batteries
-24/7 security, CCTV, and electric perimeter fencing

The villa is located less than 10 minutes from both Plettenberg Bay Central and the local airport. Viewings are available by appointment only.

This listing adds to a growing number of ultra-luxury homes for sale along the Western Cape’s coastline, a region that continues to attract foreign investors, executives, and high-net-worth South Africans seeking security and coastal seclusion.

The salary you need to afford the average home in South Africa today

A recent study by an independent economist has revealed a stark reality in South Africa’s housing market: fewer than 16% of South Africans can truly afford homes priced above R1.3 million.

The findings shine a light on the growing divide between bank loan approvals and actual affordability, raising concerns about the long-term sustainability of homeownership in the country.

According to Henri Le Grange, certified financial llanner at Old Mutual Personal Finance, qualifying for a bank loan doesn’t necessarily mean you can afford all the costs that come with owning a home.

“The affordability gap often arises because banks assess loan eligibility primarily based on income thresholds, without considering your broader financial plan,” Le Grange explains.

Banks typically evaluate affordability based not only on gross income but also on disposable income, net income, and previous monthly expenses.

“However, they look at past data and may not account for additional costs that come with homeownership, such as maintenance, insurance, or the impact of interest rate changes,” Le Grange said.

“As a result, I’ve seen customers approved for loans that exceed their true repayment capacity, threatening their financial well-being. This disconnect highlights the importance of seeking professional advice before buying a home,” said Le Grange.

Research by Izak Odendaal, investment strategist at Old Mutual Wealth, highlights key reasons why owning a home remains out of reach for many South Africans: stagnant wages, rising inflation, and higher interest rates. “South Africa’s high interest rates and rising property prices have made homeownership increasingly difficult.

“Many prospective buyers have been locked out of the market due to these combined factors, resulting in record low affordability levels in the housing sector,” he said.

This is reflected in the country’s average home purchase price, which now exceeds R1.6 million – up dramatically from R150,000 in 1994, according to alternative home financier Sentinel Homes.

Renier Kriek, managing director at Sentinel Homes, attributes the trend to the higher cost of constructing new homes versus trading existing stock. With demand shifting to old stock, prices continue to escalate, pushing affordability even further out of reach for most buyers he said.

The affordability gap becomes more apparent when breaking down actual housing costs. For a home priced at R1.3 million, and a 10% deposit, a buyer would need to cover once-off costs of around R210,000.

This translates to a gross monthly income requirement of R39,593 to cover a bond repayment of R11,878.

At the average national house price of R1.6 million, the numbers become even steeper. With a 10% deposit and R255,650 in once-off costs, a buyer would need to earn at least R48,730 per month to meet a monthly bond repayment of R14,619.

In stark contrast, BankservAfrica reports that the average take-home pay in April 2025 declined to just shy of R17,495. This figure underscores the wide chasm between earnings and what’s needed to own a home at prevailing market rates.

According the Quarterly Employment Survey (QES) from Stats SA, the average salary in South Africa stood at R28,231 in Q4.

In some areas, property averages are well out of reach for most. RE/MAX noted that the average listing price on its platform in the last quarter of 2024 was R2,950,093—well beyond what the average South African can afford.

The Western Cape remains the most expensive province, with an average home price of R1,730,225, followed by KwaZulu-Natal (R1,248,923) and Gauteng (R1,065,800).

As property prices continue to outpace income growth, experts caution that South Africa could be headed toward a deeper affordability crisis.