Bay’s R100m investments plan

Incentives offered to attract new businesses, tourists

IN its efforts to position Nelson Mandela Bay as a destination of choice for investors and tourists, the municipality plans to lure at least R100-million worth of new investments to the city by June next year.

It hopes to use its investment incentive programme as a sweetener to assist in bringing new business to the Bay.

Over the past three years, the metro has offered incentives to the tune of R9-million to four companies that brought about R3-billion worth of investments to the Bay and created about 1 000 jobs.

The money was not given to the companies directly – they received either rates, water or electricity rebates.

Companies that have benefited from the programme thus far are FAW, Lightening Innova- tion, Clover and Discovery.

The municipality’s executive director of economic development, tourism and agriculture, Anele Qaba, said he hoped to increase his incentive budget from R3-million to R5-million in the 2015-16 financial year. “The maximum that we can give to an investor is R1-million per annum over a period of three years.

“They have to meet certain criteria like creating at least 50 jobs. We look at the salaries those people will be getting, and it must be an investment of R10-million or more.

Qaba said they sometimes partnered with the Department of Trade and Industry or linked up with South African embassies within the Brics (Brazil, Russia, India, China and South Africa) circle.

“To get new investments we normally go on investment missions and go directly to meet with potential investors.

“We target certain missions where we see there might be potentials within our targeted sectors.”

The 2015-16 draft Integrated Development Plan, which is subject to change, states that Qaba’s department intends to get R1.5-million worth of new export contracts facilitated for businesses. To be able to attract and retain business in the city, the municipality has to maintain and improve its civil infrastructure – roads, electricity, water and waste management.

According to the draft IDP, the municipality plans to spend about R56.8-million to fix roads and R39-million to rehabilitate stormwater drains, as part of its strategy to re- duce maintenance backlogs.

It hopes to spend R23-million to upgrade 12 electricity substations, R8-million to install 40 new street lights and R10-million to replace building lights with energy-efficient lighting.

Following an outcry from small, micro and medium enterprises that these businesses were not getting enough support from the city, the municipality plans to train and register 45 SMMEs in exporting.

The public health department plans to upgrade six open spaces with new playground equipment, and evaluate 1 200 food handling premises.