2004/04/08

Kwazulu-Natal development agency the Ithala Development Finance Corporation Limited (Ithala) says projects worth R3-billion are being negotiated for the Richards Bay industrial development zone (IDZ).

Ithala has a majority shareholding in the IDZ, together with co-shareholder, the City of uMhlathuze.

Ithala’s Properties executive Wellington Ngcobo, revealed yesterday that projects worth R3-billion are being negotiated for the zone, while further projects worth R7-billion were still being assessed.

The zone will initially comprise some 370 ha, with future potential of more than 1 000 ha.

The first four phases have been designed to allow for the positioning of various tenant-types within areas specifically suited to their requirements.

Ngcobo says earthworks and infrastructural development of sites within the IDZ will create an injection of about R100-million over the next three years and create some 300 temporary jobs for the local community.

"Indications are that the first tenants will establish within six months, taking up export opportunities which will be afforded to them through their extremely close proximity to the port, a dedicated customs facility, and the incentive of non-liability for import duties or VAT on re-exported commodities.

"Tenants will also be able to utilise the Department of Trade and Industry incentive programmes, in respect of establishing new companies, increasing competitiveness and innovation, the importation of new machinery, and the establishment of export markets," Ngcobo concludes.