A study commissioned by the department of public enterprises reveals that 92 586 jobs would be created in Nelson Mandela Bay during the 16-year construction period of a waterfront in Port Elizabeth and close to 120 000 when the development was fully operational in 2030.

The study, undertaken by Grant Thornton in 2006, shows that during the construction period a total of R12,7-billion would be spent directly in Port Elizabeth, resulting in a total contribution to gross geographic product (GGP) of R18,3-billion.

During the construction between 2014 and 2030, salaries totalling R389-million would be paid in Port Elizabeth, with R70-million being paid in personal tax on these salaries.

In addition, companies are projected to generate R1,8-billion in profits, paying R531-million in corporate tax.

The study notes that while the full economic impact will only be realised in 2030, there would be a “significant annual impact building up from 2014”.

“At full operation the development will generate R27,5-billion in direct expenditure each year, which will make a direct and indirect contribution of R36,5-billion to the GGP of Port Elizabeth.

“At full operation, salaries of R5,7-billion will be paid annually, with R1,1-billion being paid in personal tax on these salaries.

"Companies are projected to generate R3,6-billion a year in profits and pay R1-billion in corporate tax.”

The report states that the scale of the project is “significant” adding that if Port Elizabeth‘s gross domestic product (GDP) grows at six per cent a year in 2030 “the waterfront and related developments will make up 32% of the GDP of Port Elizabeth”.

The development is also projected to attract an additional 46 000 foreign and 220 000 domestic tourists to Port Elizabeth each year.

The report concludes that the impact figures “confirm the strategic importance of the waterfront development and underline the critical importance of unlocking the land to the southern side of the port”.

Source: The Herald