Durban - EThekwini mayor Mxolisi Kaunda has committed the municipality to cutting the red tape to enable quicker processing of approvals for businesses in a bid to attract more investment to KwaZulu-Natal’s economic hub.
Kaunda made the undertaking at the sod-turning ceremony for the R1.9 billion Giba Business Estate development in Giba Gorge yesterday.
The event was attended by Public Enterprises Minister Pravin Gordhan, city councillors including eThekwini Exco member Thembo Ntuli, traditional leadership and local community members. The project, which has been seven years in the making, will provide 492 jobs during the construction phase and 4 661 permanent jobs after construction.
Located in Durban’s Outer West, the project is expected to contribute immensely to the City’s Gross Domestic Product.
According to the mayor, the project would address apartheid spatial development patterns as people who would be employed in it would not have to travel long distances to work and spend over 40% of their wages on transport.
“The Giba Business Estate is a practical example of how the government and the private sector can work together to bring economic activities closer to communities that were deliberately sidelined by the apartheid regime,” said Kaunda.
The project would include a new tarred road with street lighting, a new crèche to be developed on the adjoining property, and would ensure skills transfers and SMME development in the construction-related sectors, he said.
The mayor noted that the economic success of any country, city, or province rests on a strong partnership between a progressive government and the private sector. “It’s for this reason that as a City, we have made a commitment to the private sector that we will create a conducive environment for business to thrive by facilitating the ease of doing business.”
The mayor told community members and business leaders that while the City leadership was working at ensuring the project succeeds, it was everyone’s responsibility to ensure it runs smoothly.
“It is unacceptable for anyone to invade construction sites and extort money from developers because such illegal actions stand in the way of development,” he said. Kaunda’s warning was in reference to business forums that have often disrupted work at construction sites, demanding to be given work. He said the latest development would contribute over R60 million in rates revenue after three years of its commissioning.
Shaaz Moosa, on behalf of developers Sultex Holdings, said the development marked the opening up of new land for industrial development that was up until now zoned for agricultural use.
“Sultex Holdings comprises a group of local Durban businessmen who are collectively undertaking this prestigious project as an expression of commitment to the eThekwini region,” he said.
“The development is being led by Nathoo Mbenyane Engineers and Re-Invent Property Development Managers, companies whose track records have led to the commencement of the project.”
Pregan Naicker, CEO of Re-Invent Property, said the project was an illustration of what could be achieved through co-operation between government and the private sector.
He said they were heartened by the renewed vigour displayed by the City’s leadership in ensuring that bureaucratic blockages did not hamper industrial developments.
Gordhan said it was encouraging to see such a project getting under way, but conceded that seven years was a long period to get it off the ground.
“There is a lot of red tape from the government at the moment. There needs to be a culture change from our officials so that communities and investors are not frustrated,” said the minister.
He also appealed for the protection of such projects, noting that it has potential to attract more investments and contribute to the country’s coffers in the form of taxes.