uShaka Marine World reels in R14 Million lifeline
The eThekwini Municipality has reportedly approved a R14 million cash injection for uShaka Marine World to address financial challenges and to ensure continued operations.
The eThekwini Municipality has approved a R14 million cash injection for uShaka Marine World to help the theme park overcome its financial challenges. The majority of councillors voted in favour of the payment to the Durban Marine Theme Park (DMTP), which is controlled by the municipality.
uShaka Marine World has been experiencing cash flow challenges due to its current business model and institutional arrangements, reports IOL. The theme park's monthly cash generated during low trading periods is less than the cash required to meet mandatory expenditure, resulting in a significant drain on its cash resources.
Historical debt has also contributed to the entity's financial struggles, forcing it to accumulate sufficient cash during peak seasons to carry it through off-peak seasons.
The R14 million cash injection will help uShaka Marine World remain a going concern and prevent potential job losses and tourism revenue decline.
According to Thembo Ntuli, ANC councillor and Chairperson of the Economic Development and Planning Committee, the decision to provide funding is a strategic investment, not a bailout. "Without this funding, the park may be forced to scale down or suspend operations, putting jobs, tourism revenue, and city reputation at risk," Ntuli emphasised.
The DMTP is working on a turnaround strategy that will be concluded in July 2025, aimed at addressing the entity's financial challenges and ensuring its long-term sustainability.
A new credit agreement is also being explored to settle the entity's debt and improve its liquidity.
uShaka Marine World is a strategic tourism facility for the City of Durban and the province of KwaZulu-Natal, attracting visitors from across the country and internationally.
The theme park's operations are managed by the South African Association for Marine Biological Research (SAAMBR), a non-profit organisation, while the municipality provides funding for its operations.
HOW TO LISTEN TO EAST COAST RADIO
1. Listen to East Coast Radio on the FM (frequency modulation) spectrum between 94 and 95 FM on your radio.
2. Listen live to ECR by clicking here or download the ECR App (iOS/Android).
3. Listen to East Coast Radio on the DStv audio bouquet, channel 836.
4. Switch to the audio bouquet on your Openview decoder and browse to channel 606.
5. Listen to us on Amazon Alexa.
Follow us on social media:
Image courtesy of iStock
Have a similar story or something unique to share? Email us at [email protected], we would love to hear from you!