Shongweni Game Reserve in KwaZulu-Natal seeks investment partners

The Shongweni Dam

The Shongweni Game Reserve is currently owned by the Zwelibomvu Claimant Community (represented by the Zwelibomvu Community Trust) who acquired ownership of the reserve through a process of restoration of land rights in terms of the Restitution of Land Rights Act (22 of 1994) of South Africa. The reserve covers 1 700 ha, including the Shongweni Dam which covers an area of 51 ha.

The major land use close to the reserve is low density residential and agriculture. Plans are underway for Shongweni Game Reserve (SGR) to be declared a nature reserve in terms of the relevant environmental management and protected areas legislation.

Background

For contextual purposes, it is noted that Msinsi Holdings managed Shongweni Game Reserve between the time that the land was transferred to the community in 2013 to mid-2018. Msinsi did not invest in additional infrastructure or repairs and maintenance during this period and no moveable assets were handed over to the community upon Msinsi Holdings’ departure.

All of the fencing surrounding SGR was removed during this time (around 25 km) and the reserve had degraded due to acts of vandalism and theft. It is also noted that the land claim excluded certain communities that live around the reserve and this has brought about conflict over the benefits that accrue from SGR to the surrounding communities.

Between July and September 2018, the reserve was closed in order to identify potential revenue generating opportunities. The Department of Rural Development and Land Reform could provide additional post-settlement support and an enabling environment for tenants could be created, e.g. re-negotiating the lease agreement with Spirit of Adventure. Since mid-September 2018, a strategy has been in place to attract visitors back to the reserve.

Current plans

A number of nature, wildlife, water and adventure tourism products were identified as potential competitors in the region. This is based on the key stakeholder interviews and BDO research, a service provider that was contracted to do the business plan. The implications for SGR are as follows:

Other dams in the region allow motorised water-sports. This is a captured market that SGR should not compete with. By not allowing motorised sports at SGR, the reserve will be able to appeal to visitors who are looking for a safe and quiet environment on and around the dam.

SGR is one of the few reserves that has well-established clubs and associations that make use of the dam and this should be maintained. However, there is the opportunity to relax user requirements, so that non-members can be brought in under controlled conditions to be exposed to what the reserve and dam has to offer. The objective in doing this is to showcase the offerings of the reserve and dam to people who might take up club or association membership at SGR.

The reserves and dams in the region are generally geared towards recreational use by providing day visitor facilities, but there also offer a variety of accommodation options. These are generally self-catering and/or camping facilities. SGR has the opportunity to modernise its facilities so that they are differentiated from the traditional and old-fashioned styles of accommodation provided at competitors in the region. Very few of the competitors have unique accommodation options and SGR could offer this as a form of differentiation.

SGR is described by the key stakeholders as a beautiful hidden gem that is rural, peaceful and in an ideal location midway between Durban and Pietermaritzburg.

The dam can be used all-year-round due to the temperate climate and it is also well protected from wind. SGR has an existing tourism and recreational offering which needs to be enhanced by improving the infrastructure in the reserve, marketing SGR and improving the levels of day visitors.

The main competitors to SGR have been identified to include dams in the Durban and Pietermaritzburg region, e.g. Inanda, other nature reserves such as Kranztkloof, and other adventure tourism centres such as Isithumba and Giba Gorge.

The key stakeholders recommend that the camping facilities should be upgraded and that the old houses should be refurbished. The idea of offering a boat cruise on the dam is supported by the stakeholders.

The stakeholders also recommend that the picnic facilities should be upgraded and that additional activities should include mountain biking, training camps for canoeing and rowing, bird watching, and conferencing/functions. All of the stakeholders feel that events can be developed to generate visitor demand.

The total development cost is projected at R16.3-million before interest and working capital. Interested investors are invited to contact Tourism KwaZulu-Natal to initiate discussions.