How eThekwini plans to attract investors
The eThekwini Municipality is offering major incentives to attract investors to Durban.
In a ground-breaking move to stimulate economic growth and create job and investment opportunities, the municipality has approved the Economic Development Incentive Policy which seeks to offer financial or tax rebates as well as non-financial support for investors.
This was revealed this week at an investor briefing session.
The deputy head of the city’s economic development and investment promotion unit, Ajiv Maharaj, said: “The policy is one of the key solutions identified to enhance economic investment in eThekwini during the 2013 adoption of the Economic Development and Job Creation Strategy.”
Maharaj said the policy would be implemented from July 1 with the aim of providing property rates tax rebates to developers during the construction period.
This will aid in getting developers’ projects off the ground, encouraging urban regeneration and investment in the city.
Maharaj said the municipality would soon be opening a “one-stop-shop” to be based in Umgeni Business Park, to provide support to investors by assisting with information and streamlining administrative processes.
“Other elements within the policy aimed at facilitating the process include: foreign direct investor assistance, greenfields development, pegged rates for brownfield investments, rates relief for reinvestment in abandoned and derelict buildings (on which penalty rates are charged), incentives for investment in bulk infrastructure, achieved through a public-private partnership and appropriate target sectors. The following sectors have high employment potential, including green economy, tourism, maritime and logistics.”
Peet du Plessis, head of the city’s revenue management unit, said there was no specific fund set aside, but would be made available via the rates policy.
He said applicants must meet the following criteria: there must be an approved building plan in place, the development shall be for a defined period, the developer shall be under a non-renewable contractual obligation to complete in a defined period and be up-to-date with their municipal accounts.
Applications open on July 1 and close on September 30. Forms are available at www.durban.gov.za from July 1.
For further enquiries e-mail Dr Nuthan Maharaj at [email protected] or call 031 311 7730 or contact Sibusiso Makhathini at 031 311 4794 or e-mail [email protected]
Independent on Saturday