Isithebe, survival of the fittest

Charles Darwin’s theory of natural selection, applied as a metaphor for economic environments, is busy unfolding in Isithebe industrial park.

The violent protests in March and the week long siege of the Sundumbili water works, rapidly changed the industrial park’s economic landscape, leaving those who were unable to adapt quickly with no choice but to close down.

The 150 businesses in Isithebe lost three weeks of production due protests caused by the ANC’s internal power struggle.

A confirmed 2300 jobs were lost last week as three factories and a warehouse in Isithebe went belly up. Zikiza Joinery and Distinctive Choice closed down and it was announced that the Gomma Gomma warehouse that burnt down in March will not be reopened. The Okapi factory in Isithebe is also no longer operational since it has been relocated to Pinetown. Managing director, Kevin Chadwick denied that the relocation was related to the financial loss suffered as a result of the protests.

The Distinctive Choice clothing factory in Yellow Street employed 1500 workers and has not been open since it was torched by protesters in March and Zikiza Joinery, described on their outdoor signage in Red Street as the fastest growing joinery manufacturer in South Africa, shut down four factories that employed 800 people. A notice taped to their Red Street premises’ gate said they had to stop production because the bank ceased financing. When The North Coast Courier visited Isithebe, Mthembu Zulu, a security guard who guarded the Distinctive Choice premises in Yellow Street was still unaware that the factory had been closed down and still believed that “the people” would come back to work.

In the mean time, Ithala Business Development Corporation has backed off the eviction notices served two weeks ago to around 60 businesses in Isithebe.

Following a successful meeting brokered by the Ilembe Chamber on Thursday, July 7, Ithala has agreed to negotiate with tenants on a one-on-one basis to come to an agreement on rental fees.

A source in Isithebe revealed that rent in Isithebe was below market value because it was left unchanged for a long time, leaving landlords unable to maintain the buildings.

Isithebe reportedly hopes to have lease and rental negotiations finalised by October.

“The meeting has opened up official channels of communication between Ithala and its tenants, which was part of the problem up to now,” said a source in Isithebe.