ITHALA CONTINUES WITH SHOPPING CENTRE BUILDS

O&A Team
March 27, 2025
Business
Ithala Bank, Ithala Centre Eshowe, Ithala Development Finance Corporation
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Whilst debate heats up over the possible liquidation of Ithala Bank, a state-owned financial institution seen as a facilitator of socio-economic development in KwaZulu-Natal, the bank itself is soldiering on with key projects that are likely to impact outlying areas of the province – starting with the rebuilding of the Sundumbili Plaza in Mandeni that was destroyed by a fire.

Ithala Bank, which has long operated under regulatory exemptions, is facing possible liquidation following an application from the South African Reserve Bank’s (SARB) Prudential Authority, citing persistent failures to meet essential banking licensing requirements.

However, debate within the National Council of Provinces (NCOP) has highlighted that the bank’s closure could exacerbate the financial exclusion of historically disadvantaged communities such as the one in Eshowe.

Renovationof Sundumbili Shopping Centre, which commenced in August 2024, is set to be completed by May 2025 and is likely to revitalise the economy of Mandeni.

The destruction of the shopping centre had a severe impact on local businesses, traders, and residents who relied on the centre for essential goods and services.

The Sundumbili Shopping Centre Rebuild Project has not only focused on infrastructure restoration but has also played a key role in job creation and economic empowerment. To date, the project has employed 120 community members, providing them with much-needed income and skills development. As the project progresses, more job opportunities will be created, ensuring continued economic benefits for the people of Mandeni.

In a statement, the Ithala Development Finance Corporation (IDFC) said that it fully understands the significant role this shopping centre plays in the daily lives of people and is committed to restoring the centre to its full functionality. The rebuilding process is more than just construction and is about reviving businesses, restoring livelihoods, and creating new economic opportunities for local residents, the IDFC said.

Rebuilding of Sundumbili Plaza aligns with IDFC’s broader mission of driving economic growth, infrastructure development, and community empowerment in KwaZulu-Natal. Beyond providing employment, the project is designed to attract further investment into the area.

At the end of last year, the reconstruction of the Ithala Centre in Eshowe, a crucial economic hub that serves local businesses and the surrounding community, began. It is making steady progress and is expected to be completed by February 2026.

The IDFC said this ambitious project is part of IDFC’s continued efforts to restore, modernize and enhance commercial infrastructure in KwaZulu-Natal. By revitalizing the Eshowe Centre, IDFC aims to provide a safe, modern, and improved shopping environment that benefits both tenants and customers, ensuring long-term economic sustainability.

A key focus of this project is job creation and skills development for the local community. To date, 40 people from Eshowe have been employed, contributing to economic empowerment and providing critical work opportunities across various fields. As the project advances, additional employment opportunities are expected, further boosting local economic activity.

The Ithala Centre – Eshowe Rebuild Project encompasses reconstruction of affected shops to restore businesses impacted by previous structural challenges, infrastructure improvements to enhance roads, walkways, and accessibility and facility upgrades to implement modern safety measures, improved lighting, and updated amenities.

As both the May 2025 and February 2026 completion dates approach, the IDFC says it will continue engaging with key stakeholders, including tenants, local businesses, and community leaders.