Eastern Cape gets green light for IDZ plan

Posted On Wednesday, 15 August 2001 03:01 Published by eProp Commercial Property News
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Proposal expected to help province end its dependence on a single sector

Property-Housing-ResidentialCape town The Eastern Cape reeling from the ongoing motor industry strike and doubts about the viability of the Coega deep water harbour project has been boosted by an official green light for the establishment of an industrial development zone (IDZ) in East London.

The plan entails land close to a port and/or airport being set aside for export-orientated industry, with special incentives and services offered to attract foreign investors in particular.

A notice giving the public 60 days to comment on the proposed plan was published by Trade and Industry Minister Alec Erwin in the Government Gazette last Friday.

In terms of a programme published by Erwin's department earlier this year, the zones must be built and operated by the private sector under licence to the central government.

Key features include direct links with ports to facilitate the export of finished goods, as well as expedited customs procedures, duty-free imports of raw materials and the zero-rating of supplies procured from SA for purposes of value-added tax.

In keeping with the programme, it is envisaged that the proposed East London IDZ for which 364ha of land has been set aside on the West Bank of the Buffalo River will include a secure duty-free section close to the under-utilised harbour and airport.

After the 60-day period set aside for public comment, the trade and industry department's Manufacturing Development Programme Board will review the motivation for the industrial development zone and recommend to Erwin whether it should get the final go-ahead.

Sindisile Maclean, executive mayor of Buffalo City, the metropolitan area that includes East London, Mdantsane, King William's Town and provincial capital Bisho, said the gazetting of the IDZ notice 'could not have come at a more opportune time'.

'Job creation at a time of major labour upheaval is obviously the main aspect of this good news. It is even more welcome to us as a proposed greenfield project which will create new jobs and open up our world to valueadded, export-driven industries,' he said.

Maclean said the announcement posed a real challenge to the city to get moving on the provision on the bulk infrastructure required for the zone, which is expected to cost about R70m. 

'(The IDZ) will provide us with access to key technological developments, international markets, capital and other resources,' he said.

Deputy mayor Les Halley, who is also chairman of the East London IDZ Corporation, said the aim was to apply for a provisional licence within two months.

'With all the feasibility studies already completed, it is envisaged that detailed engineering design can now commence.... Manufacturing operations are scheduled to begin in early 2003 in the allocated duty-free area, and marketing of the 20ha industrial park will begin,' he said.

Last modified on Wednesday, 25 June 2014 12:28

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