THE first three prospective tenants, with a combined investment value of R4.5-billion, signed lease agreements with the Richards Bay Industrial Development Zone Company on Friday.
Standing between them and a massive boost for the regional economy, including the creation of thousands of jobs, is the acquiring of the necessary regulatory approvals, including Environmental Impact Assessments.
And it was the ‘red tape’ issue, often a major hindrance to development, that came under the spotlight at the signing ceremony held at the Richards Bay Country Club.
‘These projects directly address the focus of this government in terms of value adding and processing of raw materials, renewable and alternative energy sources as well as recycling and environmentally friendly initiatives,’ said keynote speaker, KZN MEC for Economic Development and Tourism, Mike Mabuyakhulu.
‘The management of the RBIDZ, supported by the Board, will work closely with these investors and support them through various legislative processes they still need to fulfil.
‘A purposeful Joint Project Team involving all relevant government departments and entities will have to be established to expedite processing of information thereby creating an enabling investing environment.
‘For business people, the ease of doing business in a particular area is critical in making an investment decision and it is collectively our mandate as government entities, especially within the IDZ proclaimed areas, to create opportunities that will reduce the red tape in doing business and foster a much more determined and coherent focus on improving the investment climate.’
The MEC called for support from Transnet and the Port of Richards Bay in particular, District and Local Municipalities, Mhlathuze Water, various government departments and other entities to eliminate unnecessary delays.
Competitive edge
Mabuyakhulu said, especially in the light of news that South Africa’s economic growth had slumped to the lowest point in more than four years – attributed to the fall in the manufacturing sector, ‘this signing ceremony is a vote of confidence in the economy of the province’.
He said government has put in place a number of policies and strategies ‘to create a progressive, innovative and competitive economy that will make SA an attractive destination to foreign investors’.
Along with Dube Trade Port, the RBIDZ is soon to be declared a Special Economic Zone, thus ‘promoting economic growth and export within an environment that is almost free of the usually burdensome government regulatory processes that often discourage investment’.
‘In addition to the two SEZ’s, KwaZulu Natal has taken a deliberate and strategic decision to create 10 Industrial Hubs in each District Municipality which shall use their competitive edge to stimulate local economic growth with linkages to the two SEZs for beneficiation, value add and export purposes,’ said Mabuyakhulu.
‘The Industrial Hubs are envisaged to compliment the SEZ’s as feeder industries.
‘The challenge facing us is to ensure that in the face of both the objective and subjective conditions, the IDZ becomes a model of development in the country.’
The MEC stressed Richards Bay’s many advantages in terms of its location, infrastructure, deepwater port and proximity to existing international minerals producers.
The Companies which signed agreements on Friday are:
Nyanza Light Metals, a subsidiary of Arkein International domicile in Mauritius. The Company wants to establish a chemical plant producing 50,000 tons per annum of titanium dioxide (TiO2) pigment with specifications and quality meeting the accepted industry standards for international pigment for coating. Titanium dioxide pigment has a wide range of uses from industrial coatings, paints, cosmetics, foodstuffs and pharmaceuticals. 60% of the product will be exported to African and international markets.
Phaka-Sangle Energy Africa, a South African based Company partnering with Zhejiang Sangle Digitization Solar Energy (Pty) Ltd based in China. The Company intends to construct a Solar Water Heater plant with a capacity of producing 30 000 units per annum of 100 litres and 150 litres during the first year and escalating to 100 000 units within five years of commencing operations. The project is linked to ESKOM’s alternative energy supply programme. This Company is currently importing fully assembled Solar Water Heaters abroad and is supplying low-cost housing projects. The successful implementation of this project would give rise to the increased contribution in local content and job creation thus reducing imports into the country.
Oasis Ecosolution SA (Pty) Ltd, part of Oasis Group of Companies based in United Arabs Emirates. Oasis is one of the world’s leading integrated energy companies and conducts business worldwide and currently operates own manufacturing plants in 7 countries including China, Dubai, Ghana, Bangladesh and Mozambique. Within the IDZ, the Company intends to establish waste oil recyling and lubricants blending plant producing both a high grade quality heavy fuel oil, light fuel oil products and diverse line of lubricants that meets international standards.
