East London IDZ star performer

East London’s Industrial Development Zone is the only programme funded by the Department of Trade and Industry that has exceeded budgeted expectations in the first half of the financial year, according to the department’s mid-term review. “The number of jobs created by the East London industrial development zone in the first half of 2010/11 was significantly higher than the estimate for the year as a whole, because the data includes both direct (permanent) and indirect (construction and other temporary) jobs. “The number of new investors in the East London industrial development zone, which contributes to supporting an efficient, competitive and responsive economic infrastructure network, has almost reached the target for the year, and the number of jobs created was 2 223 compared to the targeted 432,” it says. The critical infrastructure programme, “which also links to supporting an efficient, competitive and responsive economic infrastructure network, also performed better than expected. The value of new investments was R5.5 billion compared to the projected R7 billion,” adds the department. A number of programmes are underperforming as the recession continues to impact on economic recovery. “The number of new investors and the value of new investments in the Coega industrial development zone in the first half of 2010/11 are significantly lower than the estimate for the year as a whole, because the economic recession has slowed down planned investment activities. “There have been no new investors, new investments and jobs created in the Richards Bay industrial development zone in the first half of 2010/11, because the economic crisis has slowed down planned investment activities,” says the report. Also not meeting expectations is the demand for grants under the support programme for industrial innovation; the value of the support programme for industrial innovation projects; the number of companies assisted with export market and investment assistance; the number of film and television productions assisted and the number of new projects for the critical infrastructure programme. The number of new bilateral and regional trade and investment agreements signed in the first half of 2010/11 “is significantly lower than the estimate for the year as a whole in anticipation of Cabinet approval of the South African trade policy and strategy framework and the South African bilateral investment treaty policy framework,” says the department. One of the programmes that exceeded target is the national industrial participation programme, with 230 projects being implemented, compared with the projected 275 for the year. The total value of investment and export credits amounted to US$14.8 billion, compared with the anticipated US$15 billion for the whole year. The programme has already reached its target to create 19 000 jobs for the year.