The East London Industrial Development Zone (Elidz) needs a R81.5-million injection into infrastructure to keep its competitive edge.
This was revealed by Elidz corporate communications manager Ayanda Ramncwana, in a report to a delegation of the National Council of Provinces (NCOP), led by Mandla Rayi.
The NCOP visited the development zone yesterday as part of its task to assess challenges faced by the entity.
Ramncwana said the zone was battling to raise infrastructure funds for three major investment projects, which could put the province on a better competitive footing amid the government’s plans to introduce Special Economic Zones (SEZ) to succeed IDZs.
The three projects, which required government funding, had already been secured this year.
These include two renewable energy manufacturing plants and an automotive parts manufacturing plant, which would generate a return on investment of more than R4-billion this year.
There were also plans in the pipeline for a massive agro-industrial park, earmarked to be established in Berlin, a multimodel facility for car part manufacturing, and a multipurpose harbour cluster anchored on ship building and repairs.
Ramncwana said currently the province had no “financial muscle” to make the required funds available.
The entity relied heavily on funding from the Independent Development Trust (IDT), which was willing to put forward a fraction of the required funds.
Ramncwana said the entity was trying to lobby provincial government to make the funds available, and the deliberations were positive.
She said there were policy concerns that could have a negative impact on the future of the Elidz because these contained ideas that had not been tested elsewhere, which included the SEZs. “We don’t want to be a guinea pig again.”
Elidz chief executive officer Simphiwe Kondlo said the entity had championed the government’s IDZ plans and had been successful. “Funding is not only affecting us in investment and economic activity in this region, now it is affecting our day-to-day operations.
“Now we worry if we will have cash to service our monthly service bills.”
He said funding issues were crippling operations and there was uncertainty and a lack of clarity around the SEZ policy.
This, Kondlo said, was causing uncertainty among international investors.
He said a funding strategy and a comprehensive framework were required to drive a sustainable industrialisation programme. — msindisif@dispatch.co.za
Lack of funds places Elidz projects in jeopardy
This was revealed by Elidz corporate communications manager Ayanda Ramncwana, in a report to a delegation of the National Council of Provinces (NCOP), led by Mandla Rayi.
The NCOP visited the development zone yesterday as part of its task to assess challenges faced by the entity.
Ramncwana said the zone was battling to raise infrastructure funds for three major investment projects, which could put the province on a better competitive footing amid the government’s plans to introduce Special Economic Zones (SEZ) to succeed IDZs.
The three projects, which required government funding, had already been secured this year.
These include two renewable energy manufacturing plants and an automotive parts manufacturing plant, which would generate a return on investment of more than R4-billion this year.
There were also plans in the pipeline for a massive agro-industrial park, earmarked to be established in Berlin, a multimodel facility for car part manufacturing, and a multipurpose harbour cluster anchored on ship building and repairs.
Ramncwana said currently the province had no “financial muscle” to make the required funds available.
The entity relied heavily on funding from the Independent Development Trust (IDT), which was willing to put forward a fraction of the required funds.
Ramncwana said the entity was trying to lobby provincial government to make the funds available, and the deliberations were positive.
She said there were policy concerns that could have a negative impact on the future of the Elidz because these contained ideas that had not been tested elsewhere, which included the SEZs. “We don’t want to be a guinea pig again.”
Elidz chief executive officer Simphiwe Kondlo said the entity had championed the government’s IDZ plans and had been successful. “Funding is not only affecting us in investment and economic activity in this region, now it is affecting our day-to-day operations.
“Now we worry if we will have cash to service our monthly service bills.”
He said funding issues were crippling operations and there was uncertainty and a lack of clarity around the SEZ policy.
This, Kondlo said, was causing uncertainty among international investors.
He said a funding strategy and a comprehensive framework were required to drive a sustainable industrialisation programme. — msindisif@dispatch.co.za
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