The closure of the Newcastle furnace will result in the loss of over 1 300 direct jobs, with an estimated 2 200 indirect jobs at risk in the surrounding communities. This will exacerbate the already dire unemployment situation in South Africa, particularly in the rural areas where job opportunities are scarce. The economic spin-offs of the closure will be felt far and wide, with local businesses, suppliers, and service providers also facing financial ruin.


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The steel industry is a critical component of South Africa's economy, and the closure of the Newcastle furnace will have a ripple effect throughout the sector. The motor manufacturing industry, which relies heavily on locally produced steel, will be severely impacted, threatening the very existence of this critical sector. The consequences of this closure will be felt for generations to come, as the skills and expertise developed over decades are lost forever.

The threatened closure of Amsa’s Newcastle Furnace repeats a similar crisis when Amsa did likewise with its Saldanha Bay operations five years ago. Amsa’s possible exit would have similar catastrophic effects for its plants in Richard’s Bay and Vereeniging.

With a 41.09% unemployment rate, GDP growth barely breaking 1% and years of devastating de-industrialisation; this would be a blow we simply cannot afford.

The building was built during the time of the now defunct KwaZulu-Natal government under the late Inkosi Mangosuthu Buthelezi, then the Chief Minister, and has been lying idle for decades since the ANC-led government immediately abandoned the structure after taking power from the IFP in 2004.


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However, KZN Public Works and Infrastructure MEC Martin Meyer said it cannot be business as usual when such unused buildings drain the limited resources of the provincial government through rates and other related costs.

In a media briefing on Tuesday, the MEC said his department was busy finalising proposals which would be presented to the Cabinet on what to do with the building in order for it to be useful again.

“I think the media understands that this is a politically sensitive matter but I can confirm that in our proposal there are a couple of options that we will soon present to the cabinet for approval,” said the MEC.

The bank has been under strain for the past few months after a repayment administrator was appointed by the Prudential Authority to oversee the issue of customer deposits in the bank.

The matter came to a head on Thursday when it was announced that the Prudential Authority had decided to bring a court application to liquidate the bank. As a result the bank was ordered to cease its deposit and withdrawal functions. This occurred without any public warning, meaning the bank’s customers found out about the decision when they tried to use their bank cards and the transactions were declined.

Money for stokvels, funeral clubs, and co-operatives is now trapped in the bank, with depositors of those funds unable to access them.

Sandile Nkosi, a councillor in the Ingwavuma area, described the situation as “tense”.

“There is a lot of anger and frustration; the community feels like they have been robbed of their money.

“This situation went off like a bomb. The customers were not informed about it; their funds are trapped there and they cannot withdraw their money. The customers should at least have been informed that they must move their money to other banks.”


Nkosi said Ithala was the only bank in the community and, without it, the town could die.

“The shops and everything in this town rely on this bank to function. With this decision, it means that people will now have to travel to Jozini to access other banks to withdraw their money once they have access to it. Jozini is about 50km away, and the transport fare is almost R50 by bus and close to R100 by taxi.”

Nkosi said even the payment of social grants relied on the bank and he was worried about what would happen with the February grants.


“I have had calls from business people complaining that they have R50 000 stuck inside the Ithala Bank accounts and cannot access it. The bank is closed, and the customers do not have anyone they can go to for help.”

A customer of the bank, who works at a local crèche, said they were told by bank officials that many customers might have access to their money by the end of the month.

Another customer said: “This has traumatised us. There was no thought given to us as a community in this issue because this is the only bank that we have here.


“We received a message at midnight on Thursday that Ithala was closing its doors. We rushed there on Friday morning only to find that the place was now closed,” she said.

Thembeni Msweli, a businesswoman, said the Ithala saga had caused friction between her and her workers.

“I was supposed to pay my employees on Friday. When I inserted the card to withdraw money, it was declined. I later got a message saying everything has been frozen.”

Mfananaye Mathe, mayor of the Jozini Local Municipality, said thousands of people were dependent on Ithala.

“This decision is going to push people and businesses out of that area. If people have to travel to Jozini to access a bank, they will buy whatever they need there, which means the shops in Ingwavuma will go out of business.”

KwaZulu-Natal MEC Martin Meyer has opened a police case after a bullet was discovered at his office. The incident has raised concerns about safety and security in the region.



According to Meyer, the bullet was found in his office, prompting immediate action to ensure the safety of his staff and the public. He expressed his shock at the discovery, emphasizing that such incidents are unacceptable and must be addressed seriously. Meyer stated that he is committed to cooperating fully with law enforcement to investigate the matter thoroughly.



The MEC highlighted the importance of creating a safe working environment for all public servants. According to him, the incident underscores the need for enhanced security measures within government offices to protect employees from potential threats.



Meyer also called for a collective effort to combat violence and intimidation in the political landscape. He noted that public officials should not have to fear for their safety while performing their duties. The MEC expressed hope that the investigation would lead to the identification of those responsible for this alarming act.



In conclusion, the discovery of a bullet in Martin Meyer’s office has prompted a police investigation, highlighting the ongoing concerns regarding safety for public officials in KwaZulu-Natal. According to Meyer, it is crucial to ensure a secure environment for all employees and to address the broader issues of violence and intimidation in politics.