R100m investment target
Amount of R6m set aside to help lure new business after dramatic decline
IN its efforts to position Nelson Mandela Bay as a destination of choice for investors and tourists, the municipality plans to lure R100-million worth of new investments to the city by June. It also intends to get R1.5-million worth of new export contracts facilitated for businesses in the metro in the 2014-15 financial year and train 500 emerging entrepreneurs.
This would bring a much-needed boost to the city’s economy, which has been on a steady decline over the past eight years due to a dramatic drop in the number of business plans submitted to the metro.
According to the municipality’s draft Integrated Development Plan (IDP), which is expected to be adopted by the council today before it goes out for public participation, there were 12 225 business plans submitted to the municipality in the 2006-07 financial year.
This dropped to 2 407 plans in the current (2013-14) financial year.
The monetary value of the business plans declined from R2.7-billion to R899-million.
The IDP said there was a dramatic drop in business plans submitted in 2008 due to the global economic crisis.
The number picked up slightly in the 2009-10 financial year before dipping slightly two years later.
“However, since the 2012-13 finan- cial year, there has been a dramatic decline in the number and value of business plans submitted.
“This is indicative of an economic decline within Nelson Mandela Bay and consequently [a] decline in investment,” the report said.
Although no reasons were given for the downward spiral, the municipality hopes to turn the tide.
It has set aside R6-million to aid its efforts to acquire R100-million in new investments.
The municipality plans to launch a Nelson Mandela Bay Ambassadors Programme, in partnership with leaders, prominent figures and personalities in various sectors. This is aimed at intensifying the city’s campaign to promote the Bay as a place to “visit, live and invest [in]”.
This comes after the launch of two investment projects in Coega earlier this month.
The R400-million Agni Steels mill will create a total of 800 jobs, and the R300-million DCD Wind Towers investment will create 600 construction jobs and 130 to 200 operational jobs.
In the 2012-13 financial year, Coega created 13 500 jobs and secured investments worth R1.21-billion.
According to the municipality’s local economic development strategic plan – which is contained in the draft IDP – it wants to build broadband telecommunications infrastructure to “increase connectivity for residents and businesses by June 2015”.
It also hopes to establish freight and passenger rail services between the metro, Buffalo City and Cape Town. However, a major challenge in luring investors to the Bay is its ailing roads, electricity and water infrastructure.
The municipality needs R1.2-billion a year to eliminate the operational maintenance backlogs for water, sanitation, roads and stormwater, recreational and cultural services, and safety and security services.
This does not include the R1.2-billion needed every year to eliminate the capital maintenance infrastructure backlogs for water, sanitation, roads and stormwater, and electricity and energy.
The municipality has only budgeted R448-million and R838-million for these, respectively.